Hybrid Mutual Funds, as the name indicates, invest in a combination of two different asset classes – Debt and Equity. The Debt portion, aiming stability, gets invested in fixed income instruments like Govt Bonds, Corporate Bonds, Debenture etc.
Whereas the Equity portion gets invested in the shares of listed companies which is volatile in nature but brings the cream called high returns in the long term. Hybrid Funds are not an innovation of recent past.
Read more on financialexpress.com