Evaluating a mutual fund scheme’s returns in the past few years is vital to assess its overall returns. There are other considerations also such as reputation of fund house, past records of a fund manager, category of fund scheme, overall market conditions, so on and so forth that go into determining the fund’s overall worth.
Aggressive hybrid funds have delivered a return of 3.38 percent in past one year as a category, in the past three years — their average return was 14.90 percent, and 9.78 percent in the past five years, according to the MorningStar data.
Tenor | Average returns of aggressive hybrid (%) |
One year | 3.38 |
Three years | 14.90 |
Five years | 9.78 |
(Source: MorningStar)
The top-performing funds, however, have given a reasonably good return of more than 12 percent in the past five years.
For the unversed, hybrid funds are a blend of equity and debt. They invest in both equity and debt to find a balance between growth and income. There are numerous categories of hybrid funds.
Aggressive hybrid funds are the ones that invest 65 to 80 percent investment in equity and equity-related instruments, and the remaining 20 to 35 percent in debt instruments.
At the same time, when the allocation of equity is lower — say 10 to 25 percent, it is known as conservative hybrid fund and when the allocation lies somewhere in between 40 to 60 percent, it is known as balanced hybrid fund.
As we can see in the table below, there were two schemes that gave more than 12 percent return in the past five years. One was Quant Absolute Fund that gave annualised return of 18.90 percent in the past five years against the benchmark index of 11.27 percent while the second was ICICI Prudential Equity & Debt Fund that delivered 13.39 percent annualised returns.
Schemes that gave more than 12% annualised returns
Aggressive hybrid schemes | 5-year-returns (%) | Benchmark (%) |
Quant Absolute Fund | 18.90 | 11.27 |
ICICI Prudential Equity & Debt Fund | 13.39 | 11.27 |
(Benchmark index is CRISIL Hybrid 35+65 Aggressive Index)
There are three other schemes that gave somewhere close to 12 percent returns as on Nov 21, 2022. Baroda BNP Paribas Aggressive Hybrid Fund gave an annualised return of 11.82 percent against the benchmark return of 11.27 percent, Canara Robeco Equity Hybrid Fund gave an annualised return of 11.52 percent and Edelweiss Aggressive Hybrid Fund gave an annualised return of 11.15 percent.
These schemes gave close to 12% returns:
Aggressive hybrid schemes | 5-year-returns (%) | Benchmark (%) |
Baroda BNP Paribas Aggressive Hybrid Fund | 11.82 | 11.27 |
Canara Robeco Equity Hybrid Fund | 11.52 | 11.27 |
Edelweiss Aggressive Hybrid Fund | 11.15 | 11.27 |
We share more details on the two top performing mutual fund schemes:
Quant Absolute Fund: The scheme was launched in March 2001. The plans that available under the plan are regular and direct with growth and IDCW options. The scheme has given a return of 17.28 percent since its inception.
So, if someone had invested ₹10,000 at the time of the scheme's launch, it would have grown to ₹3,09,623.
The key constituent stocks in the scheme were ITC, Ambuja Cements, Adani Ports, RIL, NTPC, SBI, Kotak Mahindra, Bharti Airtel, Tata Consumer Products and Siemens.
ICICI Prudential Equity & Debt Fund: This scheme was launched on Nov 3, 1999. It has given a return of 14.84 percent since inception. This means if someone had invested ₹10,000 at that time, it would have been ₹2,43,650 now.
The key constituent stocks were NTPC, ICICI Bank, Bharti Airtel, Infosys ONGC and 7.42% GOI Floater 2033.