Balanced funds have debt securities to cushion them against market swings. But at the same time, these funds are considered a bit riskier than pure debt funds
. Owing to relatively higher allocation to debt instruments, Conservative Hybrid Funds have moderate risk as compared to other sub-categories. On the contrary, Aggressive Hybrid Funds have relatively higher risk on account of extensive allocation to stocks. But at the same time, these funds have a potential to generate higher risk-adjusted returns. Remember that the fund NAV may fluctuate due to changes in interest rates and stock prices. To boost returns, you may invest in Balanced Advantage Funds, wherein your portfolio would be aligned with the underlying interest rate movements. If you want exposure to multiple asset classes under one umbrella, you may go for Multi Asset Allocation Funds.