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Aggressive and potent, a clutch of hybrid MFs outsmarts Nifty 50 with three-fold returns

While the equity portion in the aggressive hybrid funds helps to deliver better risk-adjusted return during equity market rallies, the debt portion helps to contain the losses in downturns. This eventually helps them to deliver balanced and better returns over the long term

August 21, 2022 / 03:05 PM IST
Hybrid funds are mutual fund schemes investing in a mix of equity, debt and other permitted asset classes. According to the market regulator’s definition, there are six sub-categories currently available under hybrid funds. Aggressive hybrid funds category is one such investing 65-80 percent of their assets in equities and the rest in debt instruments. This category enjoys equity taxation benefit as they allocate at least 65 percent in equity. While the equity portion of these funds helps to deliver better risk-adjusted return during equity market rallies, the debt portion helps to contain the losses in downturns. This eventually helps them to deliver balanced and better returns over the long term. The top-performing schemes in the aggressive hybrid funds category managed to deliver better or matching returns than the returns generated by equity diversified funds in the long run. Here is the list of aggressive hybrid funds that beat the Nifty 50 index and also returned upto 3x of their investment done via systematic investment plans (SIPs) over the last 15 years. Most of these schemes in the category follow a benchmark of CRISIL Hybrid 35+65 Aggressive Index, which is a hybrid index. However, we have compared the performance of these schemes with Nifty 50 (PRI) index to understand how these schemes outpaced a bellwether equity market index. Source: ACEMF. Return data as of Aug 2, 2022.
Hybrid funds are mutual fund schemes investing in a mix of equity, debt and other permitted asset classes. According to the market regulator’s definition, there are six sub-categories currently available under hybrid funds. Aggressive hybrid funds category is one such investing 65-80 percent of their assets in equities and the rest in debt instruments. This category enjoys equity taxation benefit as they allocate at least 65 percent in equity. While the equity portion of these funds helps to deliver better risk-adjusted return during equity market rallies, the debt portion helps to contain the losses in downturns. This eventually helps them to deliver balanced and better returns over the long term. The top-performing schemes in the aggressive hybrid funds category managed to deliver better or matching returns than the returns generated by equity diversified funds in the long run. Here is the list of aggressive hybrid funds that beat the Nifty 50 index and also returned upto 3x of their investment done via systematic investment plans (SIPs) over the last 15 years. Most of these schemes in the category follow a benchmark of CRISIL Hybrid 35+65 Aggressive Index, which is a hybrid index. However, we have compared the performance of these schemes with Nifty 50 (PRI) index to understand how these schemes outpaced a bellwether equity market index. Source: ACEMF. Return data as of Aug 2, 2022.
Earlier known as Escorts Balanced Fund, Quant Absolute Fund has been the chart topper among the aggressive hybrid funds category. Its commendable performance in the last few years (post acquisition of Quant AMC from erstwhile Escorts AMC) has led to push up the overall performance of the scheme. An SIP of Rs 10,000 per month with the fund over the last 15 years would have generated a total corpus of Rs 63 lakh. Return as measured by the Extended Internal Rate of Return (XIRR) from the 15-year SIP in the fund works out to 15.4 percent.
Earlier known as Escorts Balanced Fund, Quant Absolute Fund has been the chart topper among the aggressive hybrid funds category. Its commendable performance in the last few years (post acquisition of Quant AMC from erstwhile Escorts AMC) has led to push up the overall performance of the scheme. An SIP of Rs 10,000 per month with the fund over the last 15 years would have generated a total corpus of Rs 63 lakh. Return as measured by the Extended Internal Rate of Return (XIRR) from the 15-year SIP in the fund works out to 15.4 percent.
ICICI Prudential Equity & Debt Fund (previously called ICICI Prudential Balanced Fund) has been a consistent performer and has done exceedingly well within the aggressive hybrid category on SIPs contributed for the last 15 years. It has delivered an XIRR of 15.3 percent during the period.
ICICI Prudential Equity & Debt Fund (previously called ICICI Prudential Balanced Fund) has been a consistent performer and has done exceedingly well within the aggressive hybrid category on SIPs contributed for the last 15 years. It has delivered an XIRR of 15.3 percent during the period.
Canara Robeco Equity Hybrid Fund, part of the MC30 curated basket, has delivered an XIRR of 13.5 percent for the SIP contributed for the tenure of the last 15 years. It generated a total corpus of Rs 53.6 lakh, which is almost triple the invested amount of Rs 18 lakh.
Canara Robeco Equity Hybrid Fund, part of the MC30 curated basket, has delivered an XIRR of 13.5 percent for the SIP contributed for the tenure of the last 15 years. It generated a total corpus of Rs 53.6 lakh, which is almost triple the invested amount of Rs 18 lakh.
SBI Equity Hybrid Fund has delivered an XIRR of 13.2 percent for the SIP contributed for the tenure of the last 15 years. It generated a total corpus of Rs 52 lakh.
SBI Equity Hybrid Fund has delivered an XIRR of 13.2 percent for the SIP contributed for the tenure of the last 15 years. It generated a total corpus of Rs 52 lakh.
Formerly called Tata Balanced Fund, Tata Hybrid Equity Fund has delivered an XIRR of 12.5 percent for the 15-year SIP. It generated a total corpus of Rs 49.2 lakh.
Formerly called Tata Balanced Fund, Tata Hybrid Equity Fund has delivered an XIRR of 12.5 percent for the 15-year SIP. It generated a total corpus of Rs 49.2 lakh.
DSP Equity & Bond Fund is another of the MC30 schemes. It has delivered balanced returns across periods. Relatively higher allocation to mid- and small-cap stocks over the last few years has helped the fund deliver higher returns. It has delivered an XIRR of 12.4 percent for the 15-year SIP. It has generated a total corpus of Rs 48.7 lakh.
DSP Equity & Bond Fund is another of the MC30 schemes. It has delivered balanced returns across periods. Relatively higher allocation to mid- and small-cap stocks over the last few years has helped the fund deliver higher returns. It has delivered an XIRR of 12.4 percent for the 15-year SIP. It has generated a total corpus of Rs 48.7 lakh.
For the 15-year SIP, Sundaram Aggressive Hybrid Fund has delivered an XIRR of 12.3 percent. It has generated a total corpus of Rs 48.2 lakh.
For the 15-year SIP, Sundaram Aggressive Hybrid Fund has delivered an XIRR of 12.3 percent. It has generated a total corpus of Rs 48.2 lakh.
Formerly called Franklin Templeton India Balanced fund, Franklin India Equity Hybrid Fund had managed the equity portion with relatively lower allocation of around 65 percent in the past. The 15-year SIP has delivered an XIRR of 12 percent.
Formerly called Franklin Templeton India Balanced fund, Franklin India Equity Hybrid Fund had managed the equity portion with relatively lower allocation of around 65 percent in the past. The 15-year SIP has delivered an XIRR of 12 percent.
Aditya Birla SL Equity Hybrid '95 Fund (earlier known as Birla Sun Life Balanced '95 Fund) has delivered an XIRR of 12 percent for the 15-year SIP. It generated a total corpus of Rs 47.2 lakh.
Aditya Birla SL Equity Hybrid '95 Fund (earlier known as Birla Sun Life Balanced '95 Fund) has delivered an XIRR of 12 percent for the 15-year SIP. It generated a total corpus of Rs 47.2 lakh.
Dhuraivel Gunasekaran