Skyrocket Your Investments: Top 5 Aggressive Hybrid Funds Delivering Returns Up to 29% Over Five Years

As investors seek to diversify their portfolios and maximize returns, aggressive hybrid funds have emerged as a popular choice, offering a balanced mix of equity and debt investments. These funds provide an attractive opportunity for growth while minimizing risk compared to pure equity investments. In this article, we will delve into the top 5 aggressive hybrid funds that have delivered impressive returns of up to 29% over a five-year period as of early 2025.

What Are Aggressive Hybrid Funds?

Aggressive hybrid funds primarily invest in equities, with a smaller portion allocated to debt instruments. By regulation, they must invest between 65% and 80% in equities and at least 20% in debt. This diversified approach helps mitigate the risk associated with investing solely in stocks, offering a more stable return profile compared to pure equity funds.

Key Benefits for Investors:

• Risk Management: Aggressive hybrid funds provide automatic diversification by allocating assets across equities and debt, which reduces the volatility typically seen in equity markets.
• Growth Potential: With a significant equity allocation, these funds can deliver returns similar to those of pure equity funds, especially during bull market conditions.
• Flexibility: The mix of equity and debt allows investors to benefit from different market conditions, as equities can grow during rising markets, while debt provides stability during downturns.

Top 5 Aggressive Hybrid Funds with Impressive Returns

Below are the top-performing aggressive hybrid funds as of early 2025, based on their five-year returns:

1. Quant Absolute Fund

• Five-Year Return: 28.51%
• Description: Quant Absolute Fund is known for its robust equity allocation strategy, leveraging market trends to maximize returns.

1. ICICI Prudential Equity and Debt Fund

• Five-Year Return: 28.62%
• Description: This fund offers a well-balanced portfolio with consistent returns, making it a popular choice among investors seeking long-term growth.

1. BOI Mid and Small Cap Equity and Debt Fund

• Five-Year Return: 27.89%
• Description: Focused on mid and small-cap equities, this fund provides exposure to emerging growth sectors while maintaining stability through its debt component.

1. JM Aggressive Hybrid Fund

• Five-Year Return: 27.27%
• Description: Known for its diversified equity allocation across different market caps and sectors, this fund offers consistent returns with managed risk.

1. UTI Aggressive Hybrid Fund

• Five-Year Return: 24.57%
• Description: This fund is recognized for its conservative approach in balancing equity exposure with debt, offering stable returns over the long term.

Comparison of Fund Performance:

| Fund Name | Five-Year Return | Fund Size (₹ Cr.) | |--------------------------|-----------------------|-------------------| | ICICI Prudential Equity & Debt Fund | 28.62% | ~38,507 | | Quant Absolute Fund | 28.51% | N/A | | BOI Mid and Small Cap Equity & Debt Fund | 27.89% | N/A | | JM Aggressive Hybrid Fund | 27.27% | ~729 | | UTI Aggressive Hybrid Fund | 24.57% | N/A |

How to Invest in Aggressive Hybrid Funds

Investing in aggressive hybrid funds is straightforward and can be done through various platforms, such as online mutual fund portals or mobile apps like ET Money or Groww. Here are the steps to get started:

• Choose Your Platform: Decide which platform you want to use to invest. Most platforms provide detailed information about different funds, including their past performance, expense ratios, and investment strategies.
• Research and Select Funds: Look for funds with a strong track record, consistent performance, and a style that aligns with your investment goals.
• Set a Budget: Determine how much you want to invest. Many funds allow minimum investments as low as ₹100 via Systematic Investment Plans (SIPs).
• Complete the Registration Process: You will need to create an account, complete the KYC process, and set up your bank mandate for transactions.

Conclusion

Aggressive hybrid funds offer a compelling option for investors seeking growth with managed risk. With the top funds delivering returns up to 29% over five years, these investments can significantly contribute to long-term financial goals, such as retirement planning or saving for major purchases. When selecting an aggressive hybrid fund, consider factors like past performance, consistency, and the fund's strategy to ensure it aligns with your investment objectives and risk tolerance.

Final Tips for Investors:

• Long-Term Approach: These funds are best suited for investors with a medium to long-term horizon, as they can mitigate market volatility over time.
• Diversification: Always consider spreading investments across different types of funds to maintain a well-diversified portfolio.
• Regular Monitoring: Keep an eye on fund performance and rebalance your portfolio as needed to ensure it remains aligned with your investment goals.

By understanding the strengths of aggressive hybrid funds and choosing the right ones, you can enhance your investment portfolio's potential for growth while maintaining a balance of risk and stability.