Evaluating the past returns of a category of mutual funds before you decide to invest your money is a challenging, but rewarding, thing to do. Here we capture the returns posted by aggressive hybrid mutual fund category. But before moving further, we want to first highlight how these funds are different.
Aggressive Hybrid Funds, also known as Equity Oriented Hybrid Funds, are hybrid mutual fund schemes which invest a minimum of 65 percent of their assets in equity or equity related securities. The remaining allocation, between 20 percent to 35 percent, is made to debt and money market instruments.
Because of substantially high equity allocation, aggressive hybrid funds more volatile than other hybrid funds. As we know equity as an asset class tends to outperform other asset classes over long investment tenures, so hybrid aggressive funds can outperform other hybrid fund categories.
One year return: The only fund that gave more than 20 percent return in past one year is ICICI Prudential Equity & Debt Fund whose direct annual return as on May 12, 2022 was 20.38 percent. Edelweiss Aggressive Hybrid Fund posted a return of 12.69 percent. We give a lowdown on these two funds below:
| Mutual Fund scheme | One-year-return (%) |
| ICICI Prudential Equity & Debt Fund | 20.38 |
| Edelweiss Aggressive Hybrid Fund | 12.69 |
(Source: AMFI data, as on May 12, 2022)
| Mutual Fund scheme | Three-year-return (%) |
| Quant Absolute Fund | 26.64 |
| ICICI Prudential Equity & Debt Fund | 18.52 |
(Source: AMFI data, as on May 12, 2022)
ICICI Prudential Equity & Debt Fund: Just as other hybrid equity schemes, this scheme is meant for investors who aim to invest predominantly in equity and equity related instruments. The mutual fund scheme has given a CAGR of 14.92 percent. An investment of ₹10,000 made at the launch of fund (Nov 3, 1999) would have grown to ₹2,25,960 as on March 31, 2022.
The top holdings of this scheme are Bharti Airtel, NTPC, ICICI Bank, ONGC and GOI Floater 2033, Hindalco, Tata Motors, HCL, Sun Pharma and Infosys.
Edelweiss Aggressive Hybrid Fund: The fund scheme has given a CAGR of 10.64 percent since its launch, and ₹1,00,000 invested at the time of inception on August 12, 2009 would have swelled to ₹3,65,926. The fund's expense ratio is 2.59 percent.
The top most holdings of the fund include ICICI Bank, HDFC Bank, Reliance Industries, Infosys, Bharti Airtel, Axis Bank, State Bank of India, L&T, ITC, HDFC and TCS in the ratio given below.
As far as three-year returns are concerned, the highest returns were given by Quant Absolute Fund that rose by 26.64 percent, as indicated in the chart above. The second highest returns of 18.52 percent were given by ICICI Prudential Equity & Debt Fund.
Regardless of these returns, investors must be mindful of the fact that the past returns ought to be seen as indicative only and they are not a guarantee or assurance for the future returns of any fund scheme or even a category of mutual funds.