Hybrid Mutual Funds: Aggressive hybrid mutual funds have become a popular choice among Indian investors, adding 3.5 lakh new folios over the past year, bringing the total to nearly 58 lakh as of April 2025. This impressive growth reflects a 12% increase in assets under management (AUM), reaching a staggering ₹2.26 lakh crore. This surge in popularity highlights a significant shift in investor behavior, driven by a combination of market conditions, strong performance, and favorable tax treatment.
Hybrid Mutual Funds
| Feature | Details |
|---|---|
| Total Folios (April 2025) | 58 Lakh |
| New Folios Added | 3.5 Lakh |
| AUM Growth | 12% |
| Total AUM | ₹2.26 Lakh Crore |
| Average Returns (1 Year) | 9% |
| Average Returns (5 Years) | 21% |
| Tax Treatment | Equity-Oriented |
| Professional Management | Active, Sector-Diversified |
| Source |
Aggressive hybrid mutual funds have become a compelling option for investors looking for a balanced approach to wealth creation. With strong past performance, tax benefits, and professional management, these funds offer a promising path for moderate risk investors.
What are Aggressive Hybrid Mutual Funds?
Aggressive hybrid mutual funds are a type of mutual fund that invests 65-80% of its assets in equities and the remaining 20-35% in debt instruments. This balanced approach aims to capture the growth potential of equities while reducing volatility with the stability of fixed-income securities. This hybrid structure appeals to investors seeking higher returns with a moderate risk profile, making it a popular choice for those aiming for long-term wealth creation.
Why Are Investors Choosing Aggressive Hybrid Mutual Funds?
Investors are flocking to aggressive hybrid mutual funds for several reasons:
- Balanced Risk-Return Profile: These funds offer a diversified investment approach, providing equity-like returns with a cushion against market volatility, thanks to their debt component. (Business Standard)
- Strong Performance Metrics: Historically, these funds have delivered solid returns — approximately 9% over the past year, 20% over two years, 15% over three years, and 21% over five years. (MillenniumPost)
- Tax Efficiency: Despite their debt component, these funds are taxed as equity-oriented investments, offering favorable capital gains tax treatment. (Upstox)
- Professional Management and Diversification: Fund managers actively adjust portfolios across sectors and market capitalizations, balancing growth opportunities with risk management. (DSP)
- Market Volatility and Regulatory Changes: Amid market fluctuations and tighter regulations, like SEBI’s recent measures on derivatives, these funds have become a safer, more diversified choice. (Business Standard)
Top-Performing Aggressive Hybrid Funds
Here are some of the top performers in this category:
- Mahindra Manulife Aggressive Hybrid Fund: 5-year return of 23.6% (Upstox)
- DSP Aggressive Hybrid Fund: Known for diversified equity and high-quality debt (DSP)
- SBI Equity Hybrid Fund, Invesco India Aggressive Hybrid Fund, Bandhan Aggressive Hybrid Fund – Consistently strong performers over various timeframes (MillenniumPost)
Canara Bank Securities Recruitment 2025 Begins – High-Paying Vacancies Open!
₹20 Lakh SBI Asha Scholarship Ends April 30—Last Chance to Fund Your Dream Degree Abroad!
FAQs on Hybrid Mutual Funds
1. Are aggressive hybrid funds risky?
Yes, they carry moderate risk as they have significant exposure to equities, but the debt component helps reduce overall volatility.
2. Are these funds suitable for long-term investments?
Yes, they are ideal for medium to long-term goals (3-5 years) as they provide balanced growth.
3. How are these funds taxed?
They are treated as equity-oriented funds for tax purposes, making them tax-efficient.
