Nippon India Hybrid Bond Fund

The Nippon India Hybrid Bond Fund has stood strong in the market for more than 12 years, offering a balanced mix of growth and stability. Launched on 1st January 2013, the Direct Growth Plan of this fund has delivered an impressive CAGR of 7.63% since inception.

Over the years, it has steadily drawn attention from those who do not want to go all-in on equity or stay too conservative with debt.

If you are looking for an investment that sits comfortably between high-risk equity funds and low-risk debt funds, the Nippon India Hybrid Bond Fund could be the right middle ground for you.

Nippon India Hybrid Bond Fund Returns

Key Features of Nippon India Hybrid Bond Fund

• Fund Type: Conservative Hybrid Fund (open-ended).
• NAV: As of 11th September 2025, the Nippon India Hybrid Bond Fund NAV stands at around ₹64.56. However, NAV is updated daily and can be tracked on major investment platforms.
• Fund Size (AUM): The scheme has a sizeable AUM, crossing ₹893.88 crores, which indicates consistent investor trust.
• Fund Benchmark: CRISIL Hybrid 85+15

Calculation of Returns From Nippon India Hybrid Bond Fund

To understand the growth potential, let us take an example with the 5-year return rate of 10.27%.

Suppose you invested ₹5,00,000 five years ago in the bond fund.

• Year 1: ₹5,00,000 × (1 + 0.1027) = ₹5,51,350
• Year 2: ₹5,51,350 × (1 + 0.1027) = ₹6,07,986
• Year 3: ₹6,07,986 × (1 + 0.1027) = ₹6,70,391
• Year 4: ₹6,70,391 × (1 + 0.1027) = ₹7,39,289
• Year 5: ₹7,39,289 × (1 + 0.1027) = ₹8,15,241

By the end of 5 years, your ₹5,00,000 could have grown to ₹8,15,241, giving you a net profit of ₹3,15,241 over the initial investment.

Expense Ratio, Exit Load and Taxation

Expense Ratio: 1.10%

Exit Load: If you redeem more than 10% of your investment within 12 months, a 1% exit load will be applied.

Capital Gains Taxation:

• If units are sold after 1 year: Gains up to ₹1.25 lakh in a financial year are tax-free. Any amount beyond this limit is taxed at 12.5%.
• If units are sold within 1 year: The entire gain is taxed at 20%.

Dividend Taxation: Dividends are added to your taxable income and taxed according to your slab. If annual dividend income exceeds ₹5,000, a 10% TDS is deducted by the AMC.

How Much Should You Invest?

Investors can choose between lump sum and SIP options based on financial goals:

• Lump Sum: Minimum ₹5,000.
• SIP: Starts from ₹1000.

Nippon India Hybrid Bond Fund - Scheme Allocations 

As of August 31, 2025, the fund portfolio is diversified as follows:

• Equity Allocation: 12.41% updated equity holding
• Large-cap Investments: 9.08% 
• Mid-cap Investments: 0.97%
• Debt Allocation: 74.39%
• Others: 13.2%

Potential Risk of Investing in this Fund

Your principal amount will be at high risk when you invest in the Nippon India Hybrid Bond Fund. Therefore, they are well-suited for individuals with long-term financial objectives such as retirement.

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