Best Aggressive Hybrid Funds

What are Aggressive Hybrid Funds?

Aggressive hybrid funds are open-ended hybrid schemes investing predominantly in equity and equity-related instruments with smaller allocation to debt and money market instruments. According to the SEBI guidelines, aggressive hybrid funds have to invest at least 65-80% of their total assets in equity and equity related instruments and 20-35% in debt instruments.

Why Invest in Aggressive Hybrid Funds?

• Provides the advantage of capital appreciation with lower volatility
• Provides a balanced risk-return mix through active diversification across asset debt and equity classes within the specified asset allocation range
• Equity portfolio enhances the returns of the overall fund portfolio while the debt portfolio limits the downside risk and generates stable returns
• Provides an alternative to investing separately in mutual funds belonging to various asset classes
• Reduces the churning cost incurred in managing separate equity and debt funds for asset allocation strategy
• Eliminates the need of market timing for implementing asset allocation strategy
• Benefits by booking profits in equity portfolios during rising equity markets and by increasing equity allocation during falling markets
• Provides higher tax efficiency than manual rebalancing of equity and debt fund exposure done by the investor themselves.

Also Read: Best Balanced Advantage Funds

Table of Best Aggressive Hybrid Funds

Fund Name	Returns (%)
	1 year	3 year	5 year	10 year
ICICI Prudential Equity & Debt Fund	9.26	18.69	22.21	16.37
JM Aggressive Hybrid Fund	-6.52	17.27	17.32	12.80
Bank of India Mid & Small Cap Equity & Debt Fund	-6.21	16.83	19.75	–
Mahindra Manulife Aggressive Hybrid Fund	3.91	15.87	17.37	–
UTI Aggressive Hybrid Fund	2.33	15.80	17.25	12.92
Edelweiss Aggressive Hybrid Fund	3.32	15.69	16.63	13.05
DSP Aggressive Hybrid Fund	3.77	15.47	14.12	13.04
Bandhan Aggressive Hybrid Fund	5.02	14.96	15.43	–
Invesco India Aggressive Hybrid Fund	-2.61	14.93	13.65	–
HSBC Aggressive Hybrid Fund	-1.54	14.76	13.23	11.27

Data as on December 9, 2025

Risks of Investing in Aggressive Hybrid Funds

• Risk profile is positioned between that of pure equity funds and pure debt funds as aggressive hybrid funds have a larger allocation towards equity and a small exposure to debt
• Exposed to interest rate risk, credit risk, liquidity risk or reinvestment risk faced by the debt funds or other instruments in the fixed income asset class
• Exposed to usual market risks and risk of capital erosion risks faced by equity funds

Who Should Invest in Aggressive Hybrid Funds?

• Investors with investment horizon of 3+ years
• Those seeking to participate in growth potential of equity markets with reduced downside risk
• Those seeking long term capital appreciation along with accrual income
• Those seeking long term capital appreciation with lower volatility than in equity funds
• Those seeking to benefit from both equity and debt across market cycles
• Those seeking automatic asset allocation through a single mutual fund scheme