An Empirical Analysis of Debt, Equity, and Hybrid Mutual Fund Performance in the Indian Market (2021–2025)

Abstract

This study focuses on analysing and comparing the performance of selected debt, equity, and hybrid mutual fund schemes in India over the period from 2021 to 2025. Mutual funds have become a popular investment avenue due to their ability to provide diversification and professional management. The research evaluates the return patterns and relative stability of three categories of funds debt, equity, and hybrid. Debt funds such as savings and low-duration funds are examined for their stability, while equity funds such as large and mid-cap schemes are analyzed for their growth potential. Hybrid funds, which combine both equity and debt, are assessed for their balanced performance. The findings of the study reveal that equity funds generated higher returns but were subject to greater volatility, whereas debt funds offered consistent but lower returns. Hybrid funds provided moderate returns with comparatively lower risk. The study emphasizes that investment decisions should be based on individual risk tolerance and financial objectives.