Aggressive hybrid funds are stealing the spotlight recently, and many might have heard the buzz from top fund managers and market gurus that these funds are set to shine in the coming years.
Strategic asset allocation and risk management have contributed to the exceptional performance of these funds, making them attractive for investors with higher risk appetite.
Let’s delve into the world of aggressive hybrid funds.
What are Aggressive Hybrid Funds?
Aggressive hybrid funds are a type of hybrid funds that invests aggressively in equity related stocks, allocating around 65 to 80% of its portfolio. The rest 20-35% is allocated to debt and other money market instruments, balancing growth with stability.
Top 5 Aggressive Hybrid Funds
These Mutual Funds have achieved high returns through several strategic moves by their fund managers, by leveraging the growth of equity market and bonds stability to become a top choice for investors.
Good stock selection and smart debt management by fund managers have also boosted the aggressive hybrid funds’ performance.
Alright! Here is the list of top performing Aggressive Hybrid Funds in India:
JM Aggressive Hybrid Fund
It is the leading fund in its category, delivering 54.03% returns over the last year, the highest in the Aggressive Hybrid Funds category. This fund returns are higher than the category average of 30.97%.
The fund managers behind these phenomenal returns are: Asit Bhandarkar, Chaitanya Choksi and Gurvinder Singh Wasan.
Bank of India Mid & Small Cap Equity & Debt Fund
The JM fund is followed, closely by Bank of India Mid & Small Cap Equity & Debt Fund which provided returns of 52.42% over the past year.
Mr. Alok Singh is the fund manager of this fund
This stellar performance is not limited to just these two funds, the other funds in the category have also given impressive returns.
ICICI Prudential Equity and Debt Fund
This aggressive fund is the second largest in terms of AUM, with Rs.37,036.78 crores under management.
Fund managers: Manish Banthia, Akhil Kakkar, Sankaran Naren, Mittul Kalawadia, Sri Sharma and Sharmila D’mello.
Quant Absolute Fund
Quant Absolute Fund was the topper in the last five and 10 years. The scheme offered 25.50% and 18.52% return respectively.
Fund managers– Anikt Pande, Vasav Sahgal, Sanjeev Sharma
Edelweiss Aggressive Hybrid Fund
The fund generated returns of 34.19% over the last year, exceeding its benchmark returns of 25.61%. It invests 74.78% in equities, demonstrating a higher growth rate.
Fund managers – Bhavesh Jain, Bharat Lahoti, Rahul Dedhia
The Quant Absolute Fund and the Edelweiss Aggressive Hybrid Fund generated returns of 37.63% and 34.19%, respectively, over the past year.
Risk and Return in Aggressive Hybrid Funds
Aggressive hybrid funds carry higher risk as most of their corpus goes into equities. Therefore, these are suitable for investors with high risk tolerance.
These funds are riskier compared to others in the hybrid fund category. However, their return generating capacity is also higher.
Who Should Invest in Aggressive Hybrid Funds?
If you are bothered by the uncertainties and volatility in the market, you can consider investing in aggressive hybrid mutual funds. These funds create better wealth for their investors than others in the hybrid funds category and aim to achieve long-term financial goals.
Benefits offered by these funds include diversification of portfolio, rebalancing to capitalize on market volatility.
Hence it is suitable for investors looking to get long term capital appreciation with a desire for mixed portfolio and the capacity to generate high returns at the cost of high risk.
Always remember to do thorough research on any fund before investing and seek professional advice if needed.
