Top Aggressive Hybrid Funds to Invest Online in 2024
Aggressive Hybrid funds are also known as Equity Oriented Hybrid Funds. They invest in various asset classes such as equity and debt. They allocate a higher percentage of funds to equity-based securities compared to other securities. According to SEBI mandates, Aggressive Hybrid Funds must invest 65% to 80% of their funds in equity or related market securities, while keeping the debt component between 20% and 35%. This allocation is based on the unique risk profiles of different securities
What is a Aggressive Hybrid Fund?
Aggressive hybrid fund blend both equity and debt securities, with a higher emphasis on equity, as regulated by SEBI guidelines. Typically, they invest 65% to 80% in equity and related instruments, with the remainder in debt. Investors can access them through SIP or lump sum investments.
These funds offer potentially greater returns compared to pure debt funds due to their equity exposure. However, they also come with increased risk, making them moderately high-risk investments. Fund managers wield significant influence, crafting investment strategies and seeking arbitrage opportunities for returns. Their stock selection spans from value to growth.
Given their equity nature, these funds are taxed similarly to equity mutual funds. Short-term gains (holding less than a year) are taxed at 15%, while long-term gains (holding over a year) above INR 1,00,000 annually face a 10% tax. As of FY 2020-21, dividends are taxed based on the investor’s income tax slab, with TDS applicable on dividends exceeding INR 5,000. Additionally, selling units incurs a 0.001% securities transaction tax. Now that we know the aggressive hybrid fund meaning, let’s check out the top 10 aggressive hybrid funds in 2024.
Top 10 Aggressive Hybrid Funds to Invest in 2024
Here is an educational list of the top 10 aggressive hybrid funds in the Indian stock market for 2024:
| Fund Name | AUM (in Cr) | Exp Ratio (%) | 1Y Return | 5Y CAGR |
|---|---|---|---|---|
| JM Aggressive Hybrid Fund | 222.76 | 0.31 | 57.33% | 20.88% |
| Bank of India Mid & Small Cap Equity & Debt Fund | 665.29 | 1.20 | 48.59% | 23.45% |
| ICICI Pru Equity & Debt Fund | 33,502.19 | 0.99 | 39.91% | 21.30% |
| Quant Absolute Fund | 1,868.85 | 0.83 | 38.51% | 26.05% |
| Edelweiss Aggressive Hybrid Fund | 1,440.35 | 0.24 | 35.24% | 19.09% |
| Baroda BNP Paribas Aggressive Hybrid Fund | 997.29 | 0.54 | 34.20% | 18.72% |
| UTI Aggressive Hybrid Fund | 5,487.53 | 1.32 | 32.70% | 16.93% |
| DSP Equity & Bond Fund | 8,805.52 | 0.77 | 29.14% | 16.26% |
| Kotak Equity Hybrid Fund | 5,160.84 | 0.47 | 29.14% | 18.57% |
| Canara Rob Equity Hybrid Fund | 9,890.14 | 0.64 | 26.96% | 16.37% |
Note: The data on the list is from 7th May, 2024. However, for real-time updates on stock prices and market trends, visit the smallcase stocks collection today!
Overview of the Aggressive Hybrid Funds in India 2024
JM Aggressive Hybrid Fund
JM Aggressive Hybrid Fund Direct-Growth, managed by JM Financial Mutual Fund, launched on an undisclosed date and currently overseen by fund managers Asit Bhandarkar, Chaitanya Choksi, and Gurvinder Singh Wasan, boasts an AUM of ₹222.76 Crores. As of 08 May 2024 at 1:34 am, its latest NAV stands at ₹125.085. Over the past year, it yielded returns of 56.95%, escalating to 94.36% over three years and an impressive 402.46% since inception. The scheme offers an opportunity to invest with a minimum SIP amount of ₹100. It is one of the best aggressive hybrid mutual funds on our list.
Bank of India Mid & Small Cap Equity & Debt Fund
Bank of India Mutual Fund presents its aggressive hybrid equity fund, the Bank of India Mid & Small Cap Equity & Debt Fund Direct-Growth. Managed by Alok Singh, it boasts an AUM of ₹665.29 Crores. As of 08 May 2024, its NAV stands at ₹36.400. Over the past year, it has delivered a return of 48.27%, while over the last three years, it has achieved 91.97%. Since its inception, it has shown remarkable growth, reaching 263.48%. Investors can start with a minimum SIP investment of ₹1000. It is one of the top aggressive hybrid funds on our list.
ICICI Pru Equity & Debt Fund
The ICICI Prudential Equity & Debt Fund Direct-Growth is one of the best hybrid aggressive funds managed by ICICI Prudential Mutual Fund, with fund managers Manish Banthia, Akhil Kakkar, Sankaran Naren, Mittul Kalawadia, and Sri Sharma. Launched on an unspecified date, it currently holds assets worth ₹33,502.19 Crores, with a NAV of ₹374.650 as of May 8, 2024, at 1:37 am. Over the past year, the scheme has yielded returns of 39.66%, with returns of 98.38% over three years, and an impressive 566.90% since its launch. The minimum SIP amount required for investment is ₹100.
Quant Absolute Fund
Quant Mutual Fund offers the Quant Absolute Fund Direct-Growth, a hybrid mutual fund managed by fund managers Sanjeev Sharma, Vasav Sahgal, and Ankit A Pande. Launched on an unspecified date, it currently holds assets under management worth ₹1,868.85 Crores. As of 08 May 2024 at 1:39 am, its latest net asset value stands at ₹433.705. Over the past year, the scheme has yielded a return of 38.26%, while over the last three years, it has delivered 84.37%. Since its inception, the return stands at a significant 590.26%. The minimum SIP amount required for investment in this scheme is ₹1000.
Edelweiss Aggressive Hybrid Fund
The Edelweiss Aggressive Hybrid Fund Direct – Growth, a hybrid mutual fund offered by Edelweiss Mutual Fund, boasts a robust performance history. Launched by Edelweiss Mutual Fund, the scheme is currently under the management of fund managers Dhawal Dalal, Bharat Lahoti, and Bhavesh Jain. With an impressive AUM of ₹1,440.35 Crores, and a NAV of ₹61.650 as of May 8, 2024, at 1:40 am, it offers compelling investment potential.
Baroda BNP Paribas Aggressive Hybrid Fund
Baroda BNP Paribas Aggressive Hybrid Fund Direct – Growth, a hybrid mutual fund by Baroda BNP Paribas Mutual Fund, is managed by fund managers Mayank Prakash, Jitendra Sriram, and Pratish Krishnan. Launched on an unspecified date, it currently holds an AUM of ₹997.29 Crores, with a NAV of ₹28.124 as of May 8, 2024, at 1:41 am. Over the past year, the scheme has delivered a return of 33.99%, over three years, 64.23%, and since its inception, an impressive 182.52%. Investors can start with a minimum SIP investment of ₹500.
UTI Aggressive Hybrid Fund
UTI Mutual Fund introduced the UTI Aggressive Hybrid Fund Direct Fund-Growth, managed by V Srivatsa and Sunil Madhukar Patil. With an AUM of ₹5,306.20 Crores, its latest NAV stands at ₹373.179 as of 08 May 2024 at 1:43 am. Over the last year, the scheme has yielded returns of 32.50%, and over the past three years, it has shown a return of 69.97%. Since its launch, it has delivered an impressive return of 325.87%. Investors can start with a minimum SIP investment of ₹500.
DSP Equity & Bond Fund
DSP Equity & Bond Direct-Growth, a hybrid mutual fund by DSP Mutual Fund, managed by Kedar Karnik and Abhishek Singh, launched on an undisclosed date, holds assets under management of ₹8,805.52 Crores. As of 08 May 2024 at 1:44 am, its latest NAV stands at ₹333.459. Over the past year, the scheme yielded returns of 28.96%, while over the last three years, it recorded 51.60% returns. Since its inception, it has delivered a return of 356.76%. Investors can start with a minimum SIP investment of ₹100.
Kotak Equity Hybrid Fund
Kotak Mahindra Mutual Fund offers the Kotak Equity Hybrid Fund Direct-Growth, a hybrid mutual fund scheme managed by Atul Bhole and Abhishek Bisen. With an AUM of ₹5,160.84 Crores, its latest NAV stands at ₹61.542 (as of 08 May 2024, 1:45 am). Over the last year, the scheme has delivered returns of 28.96%, while over the last three years, it has shown growth of 63.41%, and since its inception, it has yielded returns of 245.53%. The minimum SIP investment required is ₹100.
Canara Rob Equity Hybrid Fund
The Canara Robeco Equity Hybrid Fund Direct-Growth, a mutual fund scheme managed by Canara Robeco Mutual Fund, boasts an AUM of ₹10,077.44 Crores. Its fund managers, Shridatta Bhandwaldar, Avnish Jain, and Ennette Fernandes, oversee its operations. As of May 8, 2024, at 1:45 am, the scheme’s NAV stands at ₹349.710. Over the past year, it has yielded returns of 26.79%, while over three years, returns have reached 53.78%. Since its launch, the scheme has seen a substantial return of 388.53%. Investors can start with a minimum SIP investment of ₹1000.
How do Aggressive Hybrid Funds Work?
Aggressive growth funds maintain stability by blending equity and debt investments, adhering to SEBI standards with at least 20% allocated to debt and FD-like instruments. Equities offer long-term growth potential, while debt instruments ensure income stability. These funds aim to harness both benefits in one investment. Achieving favorable outcomes demands patience and a long-term perspective, as equity flourishes in market upswings while debt investments offer resilience during downturns.
Types of Aggressive Hybrid Funds
Two main types of aggressive funds exist, and they are:
- Aggressive Growth funds focus on investing in growth assets, minimizing income assets. Their aim is to yield substantial returns, suitable for investors comfortable with higher investment risks.
- Aggressive Hybrid funds invest in both stocks and debt products, typically with a 65-80% equity allocation. They suit individuals in the accumulation phase seeking automatic asset allocation and rebalancing solutions.
Features of Aggressive Hybrid Funds
Here are a few key features of aggressive hybrid funds:
- Aggressive hybrid funds, a type of hybrid fund, allocate around 80% of their assets to equity instruments and the remainder to debt or other securities.
- This allocation structure enables dual-functionality in returns: the equity portion offers aggressive performance in line with market valuations, while the debt component acts as a stabilizer, ensuring a steady income stream.
- By investing in uncorrelated asset classes, aggressive hybrid funds provide a safeguard against market crashes, reducing the risk of losing all investments simultaneously.
Factors to Consider While Investing in Aggressive Hybrid Funds
Consider these factors before investing in Aggressive Hybrid Funds:
- Performance: Aggressive hybrid mutual funds can yield high returns, catering to investors comfortable with moderate risk. With 80% of the investment in equity-linked schemes, these funds are volatile but potentially rewarding.
- Investor Profile: Ideal for those seeking capital appreciation or regular dividends, especially for long-term goals such as retirement planning.
- Expense Ratio: Analyze the fund’s expense ratio, opting for lower costs to maximize returns as per SEBI regulations.
- Asset Allocation: These funds allocate 65% to 80% to high-risk equity investments and the rest to debt securities, balancing return potential with risk management.
- Taxation: Tax implications vary based on the duration of investment, with long-term gains taxed at 10% and short-term gains at 15%.
- Investment Goals: Suited for long-term financial goals like retirement or education expenses, but not recommended for short-term objectives due to volatility.
- Investment Horizon: Consider the investor’s age and risk tolerance; younger investors with longer horizons may benefit more from these funds.
- Direct vs. Regular Plan: Choose between direct and regular plans based on whether you prefer to invest independently or through a third-party agent, considering the impact on returns and expenses.
Who Should Invest in Aggressive Hybrid Funds?
Aggressive Hybrid Funds’ returns are largely influenced by the performance of equity instruments in the market. These funds are suitable for:
- Investors seeking moderately high-risk investments, as about 80% of the fund’s value is typically allocated to equities. This makes them vulnerable to market downturns.
- New investors eager to experience market dynamics can explore aggressive hybrid funds. These funds mitigate risk by investing a portion of the assets in debt instruments, providing a balanced exposure.
- Those aiming to generate income from market investments may find aggressive hybrid mutual funds appealing. They offer potential for capital appreciation along with income.
- Investors aiming for long-term wealth creation, especially over a tenure of 3 years or more, may find aggressive hybrid funds suitable. These funds tend to perform better over longer periods, making them suitable for mid-range future goals, such as a 5-year investment horizon.
- Investors nearing retirement age can benefit from aggressive hybrid funds to swiftly accumulate a retirement corpus. Starting investments in these funds about 5 years before retirement can provide growth opportunities with manageable risk.
How to Choose the Best Aggressive Hybrid Funds?
Choosing the best aggressive hybrid funds involves several key steps:
- Research Fund Performance: Evaluate the historical performance of different aggressive hybrid funds to identify consistent performers over various market cycles.
- Assess Fund Manager Expertise: Look into the track record and experience of the fund manager managing the aggressive hybrid fund. A skilled and experienced manager can make a significant difference in fund performance.
- Analyze Portfolio Composition: Examine the asset allocation and underlying holdings of each aggressive hybrid fund. Assess the balance between equity and debt components to ensure alignment with your risk tolerance and investment goals.
- Consider Expense Ratio: Compare the expense ratios of different aggressive hybrid funds to understand the cost of investing. Lower expense ratios can potentially translate into higher returns for investors over the long term.
- Review Risk Factors: Evaluate the risk factors associated with each aggressive hybrid fund, including volatility, credit risk, and interest rate risk. Understanding these factors can help you make informed investment decisions.
By following these steps, investors can effectively choose the best aggressive hybrid funds that align with their investment objectives and risk preferences.
How to Invest in Aggressive Hybrid Funds?
Investing in Aggressive Hybrid Funds involves several steps:
- Research and Identify Funds: Begin by researching different Aggressive Hybrid Funds available in the market. Look for funds with a track record of consistent performance and a strong investment strategy.
- Assess Risk and Returns: Evaluate the risk-return profile of each fund to ensure it aligns with your investment goals and risk tolerance. Aggressive Hybrid Funds typically invest in a mix of equity and debt instruments, offering potential for higher returns with moderate risk.
- Review Fund Manager’s Expertise: Assess the expertise and experience of the fund manager managing the Aggressive Hybrid Fund. A skilled and knowledgeable fund manager can play a crucial role in achieving the fund’s investment objectives.
- Analyze Portfolio Holdings: Dive deep into the fund’s portfolio holdings to understand its asset allocation, sector diversification, and individual stock selection. Ensure the fund’s investment approach matches your investment philosophy.
- Consider Costs and Fees: Compare the expense ratios and other fees associated with different Aggressive Funds. Lower expenses can contribute to higher net returns over the long term.
- Monitor Performance: Regularly monitor the performance of the Aggressive Hybrid Fund to ensure it continues to meet your investment objectives. Keep track of market conditions and any changes in the fund’s investment strategy.
- Stay Informed: Stay updated with market trends, economic indicators, and regulatory changes that may impact Aggressive Hybrid Funds. Being informed allows you to make well-informed investment decisions.
By following these steps, investors can effectively invest in Aggressive Hybrid Funds and potentially achieve their financial goals.
How do Aggressive Hybrid Funds Generate Returns?
These funds generate aggressive hybrid fund returns through a dynamic allocation strategy. These funds typically invest in a mix of equity and debt instruments, aiming for both capital appreciation and income generation. Equity investments offer potential for higher returns over the long term, while debt investments provide stability and regular income. Fund managers actively manage the portfolio, adjusting the allocation based on market conditions and investment objectives. This balanced approach aims to optimize returns while managing risk, making aggressive funds suitable for investors seeking a blend of growth and stability in their investment portfolio.
Benefits of Investing in Aggressive Hybrid Funds
Hybrid mutual funds, particularly aggressive ones, offer significant benefits.
- They provide diversified portfolios with a high equity component, spanning small-cap, mid-cap, and large-cap assets.
- Investing in a single aggressive hybrid fund allows access to two asset classes without active monitoring.
- Fund managers handle asset allocation, adapting to market conditions to minimise loss risks and maximise returns.
Risks of Investing in Aggressive Hybrid Funds
Hybrid funds typically pose lower risks than pure equity funds because they allocate a portion of the fund to market instruments other than equities.
Risks of hybrid funds:
- Investing solely in equities can be highly risky due to their volatile nature. Market fluctuations can lead to significant fluctuations in equity values.
- Introducing debt assets into the fund helps mitigate market downturns. Debt instruments are less affected by market corrections compared to equities, reducing the impact of losses.
- When the market rises, the equity portion of hybrid funds increases in value, potentially yielding high returns for investors.
- The debt component of hybrid funds remains relatively stable, generating interest income from invested companies.
Hybrid funds are particularly suitable for investors with a moderate risk appetite due to their balanced approach to investing in equities and debt instruments.
Taxability of Aggressive Hybrid Funds
Aggressive hybrid funds face varying tax rates based on their equity investments. Here’s a breakdown:
For long-term gains (over a year), a 10% tax applies. However, if gains are under ₹1 lakh, they’re exempt for the current financial year.
Short-term gains (less than a year) are taxed at a flat 15% rate with no exemptions.
It’s worth noting that tax rates differ for other types of hybrid funds, irrespective of their term length.
To Wrap It Up…
Aggressive hybrid funds, a type of open-ended equity-oriented hybrid mutual funds, primarily allocate 65-80% of their assets to equities and 20-35% to debt instruments. Evaluating their performance can be challenging due to the mix of high equity exposure and some debt investment. While the significant equity portion can yield high returns, it also brings volatility. Conversely, debt securities are subject to credit and interest rate risks but can add stability to the portfolio. Therefore, investors are advised to determine their desired asset allocation between equity and debt and select suitable funds for each asset class accordingly.
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Frequently Asked Questions(FAQs) on Aggressive Hybrid Funds
Aggressive hybrid mutual funds blend equity and debt securities, with a higher emphasis on equity, as SEBI guidelines regulate. Typically, they invest 65% to 80% in equity and related instruments, with the remainder in debt. Investors can access them through SIP or lump sum investments.
The duration of Aggressive Hybrid Funds can vary according to different fund houses.
Aggressive hybrid funds offer exposure to both equity and debt, providing an automatic asset allocation solution for investors seeking simplicity in their portfolio. They suit DIY investors or those preferring independence from financial intermediaries like distributors or planners.
Investing in Aggressive Hybrid Funds provides a balanced exposure to both equity and debt, offering a straightforward asset allocation solution for investors seeking diversification without managing multiple mutual fund schemes.
For long-term gains (over a year), a 10% tax applies. However, if gains are under ₹1 lakh, they’re exempt for the current financial year. Short-term gains (less than a year) are taxed at a flat 15% rate with no exemptions. It’s worth noting that tax rates differ for other types of hybrid funds, irrespective of their term length.
An investor should at least invest for three years to profit from these investments.
