Table of Contents
- What to Invest in when the Market is Falling?
- 3 Best Conservative Hybrid Mutual Funds to Invest in 2025
- 3 Best Aggressive Hybrid Mutual Funds to Invest in 2025
- 3 Best Dynamic Asset Allocation Mutual Funds to Invest in 2025
- 3 Best Multi Asset Allocation Funds to Invest in 2025
- 3 Best Arbitrage Funds to Invest in 2025
- 3 Best Equity Savings Funds to Invest in 2025
- Final Thoughts
Are you troubled by your portfolio turning red with Mutual Funds falling by 15% with 52-week high NAVs in India?
Well, you are not alone. The news headlines called it another "Black Monday" amidst the latest trigger of President Trump's tariff crackdown, which left every investor with only one question: "Is there any safe option to invest right now?"
Well, the answer lies in this post that promotes the all-time best strategy of "Buy the dip," supporting the idea of purchasing at a low value in the hope of selling high when the market rebounds.
Let's start by learning which mutual funds category is best suited for investment during this market crash.
What to Invest in when the Market is Falling?
One of the best categories to invest in during a market fall is Hybrid or defensive mutual funds.
Why? Hybrid Mutual Funds invest in mixed assets such as equity, debt and gold funds, which helps you balance the overall risk and reward in your portfolio. If equity funds fall, the debt portion acts as a cushion and vice versa.
But, one commonly asked question troubles everybody: "Which hybrid mutual fund offers safer returns if you have a low risk profile?"
You will find the answer in the next heading, discussing the various types of hybrid funds, how they behave and for whom they are best suitable.
3 Best Conservative Hybrid Mutual Funds to Invest in 2025
Here are the top performers of the hybrid category to invest in during a market downturn:
| Scheme Name | Launch Date | AUM (in cr) | 3 Yrs Avg Returns | 5 Yrs Avg Returns |
|---|---|---|---|---|
| HDFC Hybrid Debt Fund | 12/1/2003 | 3310 | 11.04 | 12.65 |
| Parag Parikh Conservative Hybrid Fund | 5/5/2021 | 2,448 | 11.47 | - |
| Kotak Debt Hybrid Fund | 12/2/2003 | 3,017 | 10.65 | 12.38 |
Best Suited for: Watchful investors seeking stable, better-than-FD returns.
Asset Mix: 75-90% in debt funds, up to 25% in Equity Funds.
Recommended Duration: The Best time to invest is a minimum of 3+ years.
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3 Best Aggressive Hybrid Mutual Funds to Invest in 2025
Here are the top performers of the aggressive hybrid category to invest in during a market downturn:
| Scheme Name | Launch Date | AUM (in cr) | 3 Yrs Avg Returns | 5 Yrs Avg Returns |
|---|---|---|---|---|
| ICICI Pru Equity & Debt Fund | 11/5/1999 | 40,962 | 18.99 | 26.44 |
| HDFC Hybrid Equity Fund | 4/1/2005 | 23,229 | 13.44 | 19.59 |
| Edelweiss Aggr Hybrid Fund | 8/12/2009 | 2,487 | 16.88 | 20.99 |
Best Suited for: First-time equity investors or cautious ones.
Asset Mix: 65-80% in equity and the remaining in debt.
Recommended Duration: The Best time to invest is 5+ years.
3 Best Dynamic Asset Allocation Mutual Funds to Invest in 2025
Here are the top performers of the dynamic asset allocation category to invest in during a market downturn:
| Scheme Name | Launch Date | AUM (in cr) | 3 Yrs Avg Returns | 5 Yrs Avg Returns |
|---|---|---|---|---|
| HDFC Balanced Advtg Fund | 2/1/1994 | 94,824 | 20.04 | 24.92 |
| ICICI Pru Balanced Advtg Fund | 12/1/2006 | 60,591 | 13.08 | 16.37 |
| Edelweiss Balanced Advtg Fund | 8/20/2009 | 12,239 | 11.66 | 15.27 |
Best Suited for: Investors looking for equity upside with active risk management.
Asset Mix: Adjusts dynamically between 0-100% equity or debt.
Recommended Duration: The Best time to invest is a minimum of 5+ years.
3 Best Multi Asset Allocation Funds to Invest in 2025
Here are the top performers of the multi-asset allocation category to invest in during a market downturn:
| Scheme Name | Launch Date | AUM (in cr) | 3 Yrs Avg Returns | 5 Yrs Avg Returns |
|---|---|---|---|---|
| ICICI Pru Multi Asset Fund | 10/31/2002 | 55,360 | 18.62 | 25.16 |
| Tata Multi Asset Opportunities | 3/4/2020 | 3,548 | 13.43 | 18.06 |
| Quant Multi Asset Fund | 3/21/2001 | 3,184 | 17.57 | 31.08 |
Best Suited for: Investors looking to diversify their mutual fund portfolio management.
Asset Mix: Minimum 10% each in equity, debt and Gold Mutual Funds.
Recommended Duration: The Best time to invest is at least 5+ years.
3 Best Arbitrage Funds to Invest in 2025
Here are the top performers of the arbitrage category to invest in during a market downturn:
| Scheme Name | Launch Date | AUM (in cr) | 3 Yrs Avg Returns | 5 Yrs Avg Returns |
|---|---|---|---|---|
| ICICI Pru Equity Arbitrage | 12/30/2006 | 25,727 | 6.76 | 5.48 |
| Nippon India Arbitrage Fund | 10/5/2010 | 13,698 | 6.6 | 5.42 |
| SBI Arbitrage Opportunities Fund | 11/3/2006 | 30,592 | 6.89 | 5.49 |
Best Suited for: Low-risk takers with added tax benefits.
Asset Mix: Mix of equity and debt stocks.
Recommended Duration: The Best time to invest is 6 months and up to 1 year.
3 Best Equity Savings Funds to Invest in 2025
Here are the top performers of the equity savings category to invest in during a market downturn:
| Scheme Name | Launch Date | AUM (in cr) | 3 Yrs Avg Returns | 5 Yrs Avg Returns |
|---|---|---|---|---|
| HDFC Equity Savings Fund | 9/5/2004 | 5,430 | 10.18 | 13.16 |
| Kotak Equity Savings Fund | 10/11/2014 | 8,043 | 10.87 | 12.08 |
| DSP Equity Savings Fund | 3/28/2016 | 2,517 | 10.33 | 12.67 |
Best Suited for: Tax efficiency seekers with steady income generation.
Asset Mix: Equity + Arbitrage + Debt.
Recommended Duration: The Best time to invest is a minimum of 3+ years.
Smart Investments, Bigger Returns
Final Thoughts
In short, it is natural to panic when you see your portfolio turning red, but in times like these, your patience and dedication are put to the test.
This is the ultimate test of time that asks for strategic planning to safe investments during market decline and draw out some strong plans that can withstand the market ups and downs and help you grow your SIP 2X better.
This is where the insights shared in this blog will be of help and can strongly weather out the market volatility while preparing your portfolio for better days ahead with best hybrid funds during market crash.
Pro Tip: See the 5 Best Mutual Funds Outperformed in Market Crash with One Click.
