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Are there any hybrid funds that provide Section 80C benefit?

Dhirendra Kumar says which conservative investment avenues provides tax benefit under Section 80C

Are there any hybrid or balanced funds that provide Section 80C benefit for tax saving? If not, what should an investor do if he doesn't want to invest in an ELSS because it is a pure equity fund?
-Vipin

There are two pension plans (one from Franklin India and the other from UTI) offered by mutual funds which invest only up to 40 per cent in equity. The remaining 60 per cent is invested in fixed income. Both of the funds are conservative. Even the National Pension System(NPS) is a conservative vehicle and gives you benefit under Section 80C. The maximum you can invest in equity through NPS is 50 per cent. But in NPS your money is locked till retirement. You have to buy an annuity using at least 40 per cent of the corpus.

This is one part. I would say that Vipin is young and should not be scared of equity. I think equity is risky when you invest for few days, few weeks or few months. Minimum period for which you invest in an ELSS is three years. The possibility of losing money or being very disappointed with a three-year holding period, that too when you invest in a methodical way, comes down dramatically. To reduce the risk, invest via SIPs in a tax-saving fund and further elongate the holding period.

I would say that investors should embrace some risk. Volatility is not risk. Volatility will turn into risk only if you are thinking short-term.

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