Hybrid Funds

Five hybrid funds feature among India's 10 largest equity and hybrid mutual fund schemes by AUM, together managing around ₹4.35 lakh crore. Here's where investors' biggest mutual fund pools are sitting and how these schemes have performed over three, five and 10 years.

Seven aggressive hybrid funds delivered 12% or more in five-year SIP returns, led by Bank of India Aggressive Hybrid Fund at 16.50%. However, performance varied widely among the category’s largest schemes, with HDFC Aggressive Hybrid Fund returning 5.99% and ICICI Prudential delivering 12.26%.

Income Plus Arbitrage FoFs combine debt and arbitrage exposure through underlying mutual fund schemes. Here's a look at the top five performers by 1-year returns and what the category’s portfolio mix looks like.

Three multi-asset allocation funds delivered over 14% in one year, led by 360 ONE at 19.91%, while Quant and Kotak followed. But the category's largest funds by AUM saw varied returns, with ICICI Prudential at 3.54% despite managing ₹87,833 crore.

Large-cap funds predominantly invest in large-cap stocks, while aggressive hybrid funds combine equity with debt. A comparison of their 1-, 5- and 10-year returns, along with risk-adjusted performance, reveals how the two mutual fund categories have fared over time.

AMFI’s August 2026 data shows balanced hybrid funds attracting ₹1,836 crore, higher than the ₹1,323 crore for aggressive hybrid funds. But aggressive hybrid funds delivered better returns over the last one year. So, what explains the higher inflows into balanced hybrid funds?

Hybrid funds offer exposure to multiple asset classes through a single scheme. But how have different hybrid fund categories performed? Here’s a look at the top and bottom performers based on 3-year SIP returns.

Balanced advantage funds can have vastly different portfolio structures despite belonging to the same SEBI category. Variations in equity, debt and cash can lead to distinct risk profiles and return outcomes, making portfolio composition an important factor to evaluate.

Investors can consider multi-asset funds for stability as market volatility rises, using diversification across equities, debt and gold to balance risk and improve long-term wealth-creation potential.