Latest news with #AggressiveHybridFund
Mint
11-06-2025
- Business
- Mint
Best mutual funds: THESE 8 aggressive hybrid funds gave over 20% annualised return in the past 3 years
Best mutual funds: At the time of investing in a mutual fund scheme, it is vital to first monitor the returns delivered by that scheme and compare the same with other schemes in the same category. This gives an indication of how the scheme could perform in future. It is noteworthy that there are other factors which play a role in assessing the worth of a mutual fund. These include past performance of fund manager (in case of active funds), reputation of fund house and the category of scheme. Here, we list out the past three year returns of aggressive hybrid mutual funds. Those who are not aware of aggressive hybrid funds refer to the schemes which invest anywhere between 65 to 80 percent of their assets in equity and equity-related instruments. The remaining 20 to 35 percent of assets are invested in debt instruments Aggressive hybrid fund 3-year-return AUM ( ₹ crore) BOI Mid and small cap equity and debt fund 23.22 1,235.92 ICICI Prudential equity and debt fund 20.87 43,797 JM Aggressive Hybrid Fund 23.94 840 DSP Aggressive Hybrid Fund 19.24 11,248 Edelweiss Aggressive Hybrid Fund 19.70 2,815 Invesco India Aggressive Hybrid Fund 19.40 719 Mahindra Manulife AHF 19.36 1,739 UTI Aggressive Hybrid Fund 19.17 6,366.80 (Source: AMFI; Returns as on June 9, 2025) As the table above shows, JM Aggressive Hybrid Fund delivered 23.94 percent return in the past three years, Bank of India mid and small cap equity and debt fund gave 23.22 percent return. Other schemes which have delivered over 20 percent annualised return in the past three years are ICICI Prudential equity and debt fund and JM Aggressive Hybrid Fund. Based on the size of the fund, the largest schemes are ICICI Prudential equity and debt fund (asset size of ₹ 43,797 crore) and DSP Aggressive Hybrid Fund (with asset size of ₹ 11,248 crore). Notably, historical returns do not guarantee future returns. To put it simply—just because a scheme has delivered exceptional returns into the past, it does not mean it will continue to perform at the same pace in the future as well. Therefore, investors are recommended to view a scheme holistically and judge various factors including the past returns. Note: This story is for informational purposes only. Please speak to a SEBI-registered investment advisor before making any investment related decision. For all personal finance updates, visit here.
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Business Standard
12-05-2025
- Business
- Business Standard
24% return in 5 years? Aggressive hybrid funds a go-to choice for investors
Amid market volatility, aggressive hybrid mutual funds have quietly emerged as a reliable, high-performing option for those seeking both growth and stability. According to the latest data from the Association of Mutual Funds in India (AMFI), the asset base of aggressive hybrid funds rose 12% year-on-year to Rs 2.26 lakh crore in April 2025, while the investor base expanded by 3.5 lakh folios, reaching nearly 58 lakh. What are aggressive hybrid funds? Aggressive hybrid mutual funds invest 65–80% of their assets in equities and the rest in fixed-income (debt) instruments. This blend offers a sweet spot between risk and reward—ideal for investors with a moderate risk appetite and a 3–5 year investment horizon. 'Investors want equity-like returns, but with a cushion. That's where aggressive hybrids shine,' says Trivesh D, COO of Tradejini. "These funds invest 65-80 per cent in equity and the rest in debt, giving you an equity-like growth potential with a debt cushion. Think of them as an auto-rebalancing portfolio combining a flexi-cap and short-duration fund. For new investors, or those seeking long-term growth with less anxiety, aggressive hybrids are an excellent starting point. While it may not match the market highs, it softens the lows, giving you a smoother ride. Further, the auto-rebalancing feature and treatment as an equity-oriented fund offers tax advantage. In essence, it's a simplified version of an investor's portfolio across equity-debt, market capitalisation and credit quality," as per the Value Research Team. How have they performed? Recent performance numbers back the growing enthusiasm: 1-year average return: 9% 2-year average return: 20% 3-year average return: 15% 5-year average return: 21% These funds differ from other hybrid mutual funds primarily in the equity exposure, as they invest 65-80 per cent in equities higher than the conservative or balanced hybrids that offer better return potential but also higher risk, making them ideal for investors with a moderate risk appetite and a 3-5 year view, as per Trivesh D. Which Funds Are Leading the Pack? On average, the 31 aggressive hybrid mutual funds in the market delivered ~9% returns over the last year. Top-performing funds include: Mahindra Manulife Aggressive Hybrid Fund: 23.6% (5-year return) DSP Aggressive Hybrid Fund Bandhan Aggressive Hybrid Fund SBI Equity Hybrid Fund Invesco India Aggressive Hybrid Fund These funds have capitalised on sectors like banking, consumer durables, and infrastructure, while limiting exposure to high-volatility sectors like IT and oil & gas. "With the market expected to move more on sector-specific and stock-specific developments rather than broad-based rallies, fund managers with a dynamic approach will be better positioned to capture emerging opportunities," Santosh Joseph, CEO, Germinate Investor Services, said. Why Aggressive Hybrid Funds are gaining ground The numbers speak for themselves: the asset base of aggressive hybrid funds grew from Rs 2.02 lakh crore in April 2024 to Rs 2.26 lakh crore in April 2025, a solid 12% year-on-year increase, according to AMFI data. This growth is not just a statistic—it reflects a significant behavioural shift among retail investors. 'Retail investors are actively seeking balanced and tax-efficient options, especially after SEBI's recent tightening of F&O norms,' explains Trivesh D, COO of Tradejini. The crackdown on high-risk derivatives trading has pushed many investors toward more stable, diversified investment avenues—and aggressive hybrid funds fit the bill perfectly. These funds have outperformed traditional debt instruments and even many pure equity funds in risk-adjusted terms over 3- to 5-year horizons. What's driving these returns? Take the Mahindra Manulife Aggressive Hybrid Fund, for instance. Its strong performance stems from: Overweight position in large-cap equities: Sectors like banking, consumer durables, and construction materials offer dependable growth with lower volatility. Underexposure to global risk sectors: The fund avoids heavy allocations to IT, oil & gas, and metals, which are prone to international demand and commodity price swings. Smart debt allocation: By maintaining a solid chunk in high-quality fixed income, the fund builds in a stability layer. If policy rate cuts are announced later this year, the bond component could benefit from capital gains, further boosting returns. Aggressive hybrid funds give investors exposure to growth (through equities) while offering capital protection during volatile times (through debt). Experts say this mix is increasingly relevant as: Markets are expected to move in a stock-specific and sector-specific way rather than broad rallies Geopolitical and interest rate uncertainty continues to drive caution Equity valuations are high, so many investors are reluctant to go "all in" 'Fund managers with dynamic strategies are better positioned to capture pockets of opportunity,' said Santosh Joseph, CEO of Germinate Investor Services. 'Aggressive hybrids allow you to benefit from this without committing 100% to equity.' How much to invest? Experts recommend using a Systematic Investment Plan (SIP) to invest in such funds, as it helps average out market volatility and instills investment discipline. They typically suggest allocating 15-25 per cent of an investor's portfolio to hybrid funds, depending on risk appetite. Stay invested for at least 3–5 years: That's when the asset allocation strategy truly pays off Overall, the hybrid category's asset base grew 21 per cent year-on-year to Rs 9.15 lakh crore as of April 2025 and added over 22 lakh folios to 1.58 crore during the period. Tax advantage: From a taxation perspective, aggressive hybrid funds are treated as equity-oriented funds, meaning: Long-term capital gains (after 1 year) are taxed at 10% above ₹1 lakh per year This is lower than the tax on debt funds, making hybrids a smart choice for tax-efficient long-term investing
