Aggressive hybrid funds are considered as the best bet for conservative or new equity investors. These schemes allocate 65-80% to stocks, and 20-35% to debt instruments. Mutual fund managers and advisors say the mixed portfolio helps these funds to contain volatility better. That is why these schemes are recommended to new investors. There are 33 aggressive hybrid schemes in the market and seven of them have been around for as long as 25 years.
The oldest is LIC MF Equity Hybrid Fund. It has been around for 31 years. However, it offered a measly 8.64% returns since inception. The rest of the schemes have been able to offer double-digit returns since inception:
|Scheme name||Inception date||Returns since inception|
|LIC MF Equity Hybrid Fund||31-Mar-1991||8.64%|
|Canara Robeco Equity Hybrid Fund||01-Feb-1993||12.48%|
|Aditya Birla Sun Life Equity Hybrid ’95 Fund||10-Feb-1995||18.48%|
|UTI Hybrid Equity Fund||20-Mar-1995||14.65%|
|JM Equity Hybrid Fund||01-Apr-1995||11.65%|
|Tata Hybrid Equity Fund||08-Oct-1995||14.91%|
|SBI Equity Hybrid Fund||31-Dec-1995||15.60%|
Source: Value Research
Aggressive hybrid fund category was created in 2017 after the re-categorisation of mutual funds by Sebi. Earlier, these schemes used to be known as equity hybrid schemes and balanced schemes. They used to invest in a mixed portfolio of equity and debt, mostly above 65% in equity to qualify for equity mutual fund taxation. However, there was no official investment mandate before the recategorisation norms were introduced.
The aggressive hybrid category has given better returns than conservative and balanced hybrid schemes since the re-categorisation because of their higher allocation to equities.
On the basis of returns since inception, Aditya Birla Sun Life Equity Hybrid ’95 Fund has outperformed the other schemes in the list. However, in the last 11 years since 2010, only four of these schemes- Canara Robeco Equity Hybrid Fund, Aditya Birla Sun Life Equity Hybrid ’95 Fund, UTI Hybrid Equity Fund and SBI Equity Hybrid Fund- have beaten their benchmarks seven times. Two schemes in the list- JM Equity Hybrid Fund and Tata Hybrid Equity Fund – have beaten their benchmarks five times. LIC MF Equity Hybrid Fund managed to beat its benchmark only thrice in these years.
Let’s take a look at the recent performance of these schemes:
|Scheme name||1-year returns||3-year returns|
|LIC MF Equity Hybrid Fund||-1.85%||8.79%|
|Canara Robeco Equity Hybrid Fund||0.40%||14.93%|
|Aditya Birla Sun Life Equity Hybrid ’95 Fund||-3.22%||12.06%|
|UTI Hybrid Equity Fund||2.23%||17.28%|
|JM Equity Hybrid Fund||0.79%||20.57%|
|Tata Hybrid Equity Fund||3.08%||14.14%|
|SBI Equity Hybrid Fund||0.81%||13.61%|
Source: Value Research
Even though SBI Equity Hybrid Fund is the youngest of all these funds, the scheme manages a whopping Rs 55,325 crore AUM. It is the biggest fund in the category. On the other hand, JM Equity Hybrid Fund has a small AUM of Rs 10 crore in the last 25+ years. Apart from JM and LIC, all other schemes in the list have a large AUM.
|Scheme name||AUM in Rs crore|
|LIC MF Equity Hybrid Fund||423|
|Canara Robeco Equity Hybrid Fund||8,179|
|Aditya Birla Sun Life Equity Hybrid ’95 Fund||7,688|
|UTI Hybrid Equity Fund||4,332|
|JM Equity Hybrid Fund||10|
|Tata Hybrid Equity Fund||3,222|
|SBI Equity Hybrid Fund||55,325|
Source: ET Online
Note, this is not a recommendation. This exercise just takes into account only the CAGR returns of the scheme and its benchmark. You also need to include other factors while choosing a scheme to invest in. For our aggressive hybrid fund recommendations, please see: Best aggressive hybrid schemes to invest in 2022.