Before investing in a mutual fund scheme, investors often weigh a number of pros and cons such as the returns they delivered vis-à-vis benchmark index returns.
Consistently beating the benchmark returns is seen as a healthy sign of a mutual fund’s performance. For the unversed, a benchmark index is a standard against which the performance of a security such as a fund scheme is evaluated.
Here, we list out the aggressive hybrid funds which have managed to beat the benchmark index returns in the past five years.
What are balanced hybrid funds?
Aggressive hybrid funds refer to the schemes that invest anywhere between 65 to 80 percent of their assets in equity & equity-related instruments, while the balance (20-35%) in debt instruments, as per the Sebi’s categorisation of mutual funds.
These funds are one of the three categories of hybrid mutual funds, which also include conservative and balanced hybrid funds.
| Aggressive hybrid funds | 5-year-returns (%) | Benchmark returns (%) |
| Baroda BNP Paribas Aggressive Hybrid Fund | 14.56 | 13.08 |
| DSP Equity & Bond Fund | 14.16 | 13.08 |
| Edelweiss Aggressive Hybrid Fund | 14.13 | 13.08 |
| HDFC Hybrid Equity Fund | 13.89 | 12.60 |
| ICICI Prudential Equity & Debt Fund | 17.05 | 13.08 |
| JM Equity Hybrid Fund | 14.04 | 13.08 |
| Kotak Equity Hybrid Fund | 15.42 | 12.60 |
| Quant Absolute Fund | 20.41 | 13.08 |
(Source: AMFI; 5-year-returns as on Oct 4)
As we can see in the table above, ICICI Prudential Equity & Debt Fund outpaced benchmark index returns by delivering 17.05 percent annualised returns in the past five years. At the same time, Quant Absolute Fund's five-year annualised returns stood at 20.41%, while DSP Equity & Bond Fund gave 14 percent annualised returns, against the benchmark return of 13.08 percent.
Here we give a lowdown on some of the top performing mutual funds:
Quant Absolute Fund: Quant Absolute Fund was launched on Feb 19, 2001. It has a total assets under management (AUMs) of ₹1,335 crore. It has delivered an annualised return of 16.66 percent since inception.
Its key constituents include Treps (Treasury Bills Repurchase), Jio Financial Services, RIL, HDFC Bank and NTPC.
ICICI Prudential Equity & Debt Fund: It was launched on Nov 3, 1999 and has assets under management (AUMs) of ₹25,274 crore. It has given an annualised return of 14.93 percent since inception.
Its key constituent stocks include NTPC, ICICI Bank, Bharti Airtel, Treps and ONGC.
Kotak Equity Hybrid Fund: It was launched on Nov 3, 2014 and has given an annualised return of 11.38 percent since inception.
It has an AUMs of ₹4,170 crore and key constituent stocks include Triparty Repo, HDFC Bank, Govt Stock 2033, Govt Stock 2030 and ICICI Bank.
