DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
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Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
Image source: www.freepik.com - photo created by freepik
Join Now: PersonalFN is now on Telegram. Join FREE Today to get 'Daily Wealth Letter' and Exclusive Updates on Mutual Funds
The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.
DIVYA GROVER MAR 03, 2023 / READING TIME: APPROX. 18MIN
Aggressive Hybrid Funds are hybrid mutual funds that invest predominantly in equities and equity-related instruments along with meaningful exposure to debt securities (to reduce volatility). This approach provides you with the benefit of the upside potential of equity investment at a lower risk as compared to pure equity funds.
In this article, we bring to you PersonalFN's list of the 5 Best Aggressive Hybrid Funds to invest in 2023 that have solid growth potential.
Examples of Aggressive Hybrid Funds in India
| Scheme Name |
AUM (Rs Crore) |
| SBI Equity Hybrid Fund |
55,611 |
| ICICI Pru Equity & Debt Fund |
21,306 |
| HDFC Hybrid Equity Fund |
18,830 |
| Canara Rob Equity Hybrid Fund |
8,270 |
| DSP Equity & Bond Fund |
7,348 |
| Aditya Birla SL Equity Hybrid '95 Fund |
7,175 |
| Mirae Asset Hybrid Equity Fund |
7,087 |
| HSBC Aggressive Hybrid Fund |
4,708 |
| UTI Hybrid Equity Fund |
4,386 |
| Kotak Equity Hybrid Fund |
3,226 |
Data as of January 31, 2023
(Source: ACE MF)
What are Aggressive Hybrid Funds?
Aggressive Hybrid Funds, also known as Equity Hybrid Funds, are open-ended hybrid mutual fund schemes that invest in both equity and debt. The equity allocation in this category of funds range between 65%-80% of its total assets, while debt instruments have an exposure of 20%-35% in the portfolio.
A combination of these asset classes offers a high level of diversification, hence, lowering the risk as compared to pure equity funds. Given the high equity allocation, it becomes clear that Aggressive Hybrid Funds are not insulated from market volatility. However, with the cushioning of the debt portfolio, they are better equipped to minimise downside risk when compared to pure equity funds.
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The equity investment can range across market capitalisation and sectors, depending on the investment mandate and strategy of the scheme. In terms of debt investment, the fund manager can invest across securities having different maturities and credit profiles.
The fund managers of aggressive hybrid funds regularly rebalance the portfolio to maintain the mandated equity and debt allocation so that you, the investor, don't have to time the market to implement asset allocation strategy.
[Read: Asset Allocation: Hocus-Pocus Or The Essence Of Successful Investing?]
Top holdings of Aggressive Hybrid Funds
Data as of January 31, 2023
(Source: ACE MF)
Why should you invest in Aggressive Hybrid Funds in 2023?
The equity market has been witnessing intense volatility of late due to various events such as elevated inflation levels, fears of global slowdown, shrinking profitability of India Inc., and the more recent Adani saga.
Given the multiple headwinds, the equity market is likely to show muted growth in 2023. On the other hand, debt investments are expected to fare better as we near the end of the rate hike cycle and the subsequent easing of interest rates. This is because when interest rates start declining, debt instruments offer better returns due to the inverse relation between interest rate and bond prices.
Keeping this in mind, it is better to play safe and diversify your portfolio across equity and debt. The equity part of the Aggressive Hybrid Fund will offer you the opportunity to benefit from the long-term growth of equities, while the debt part of the portfolio will offer stability and cushion against equity market volatility.
Who should invest in Aggressive Hybrid Funds?
Aggressive hybrid funds could prove to be a worthy long term bet for investors with a moderately high risk appetite. By investing in Aggressive Hybrid Funds, investors stand to benefit from the stability of debt investment as well as high growth potential of equities, through a single fund. So, if your investment objective is focused on gains across the universe of stocks, albeit at a lower risk compared to pure equity funds, you can consider investing in an Aggressive Hybrid Fund. Ensure that you have an investment horizon of at least 3-5 years when investing in Aggressive Hybrid Funds.
How are Aggressive Hybrid Funds taxed?
Aggressive Hybrid Funds are equity-oriented mutual funds, and hence they follow equity taxation. The short-term holding period for Aggressive Hybrid Funds from a tax perspective is 12 months. So, if you sell your Aggressive Hybrid Funds units before 12 months, you pay short-term capital gains (STCG) tax of flat 15% on the gains.
On the other hand, if you sell your Aggressive Hybrid Funds units after completing one year, you pay a long-term capital gains tax of 10%, but only if your gains exceed Rs 1 Lakh in a financial year. If your long-term gains are below Rs 1 Lakh and you redeem after completing one year, then you do not have to pay any tax on these gains.
[Read: Want to Know How Hybrid Funds are Taxed? Read This]
Which are the best Aggressive Hybrid Funds to invest in 2023?
At PersonalFN, we have shortlisted five best Aggressive Funds to invest in 2023 after stringently evaluating each of them on numerous qualitative and quantitative parameters.
Let us now take a look at the five best Aggressive Hybrid Funds to invest in 2023.
Best Aggressive Hybrid Funds to Invest in 2023
Past performance is not an indicator for future returns
Data as of February 27, 2023. Direct plan - Growth option considered
(Source: ACE MF)
Best Aggressive Hybrid Fund to Invest in 2023 #1: Canara Robeco Equity Hybrid Fund
Canara Robeco Equity Hybrid Fund is one of the oldest schemes in the Aggressive Hybrid Fund category that is about to complete three decades of its existence. Launched way back in February 1993, the fund carries a consistent track record of performing well among equity-oriented hybrid funds. The fund has managed to deliver on the risk-adjusted returns front, and provide some stability to its investors, even during depressed market conditions.
Fund Snapshot - Canara Robeco Equity Hybrid Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Canara Robeco Equity Hybrid Fund gives high importance to safety and does not resort to taking aggressive calls for extraordinary returns. It focuses on selective stock picking and maintains a well-diversified portfolio of quality stocks with a long-term view. This strategy of the fund house enables it to keep the overall risk low and perform well even during uncertain market conditions.
Best Aggressive Hybrid Fund to Invest in 2023 #2: Quant Absolute Fund
Launched in March 2001, Quant Absolute Fund is an actively managed small-sized scheme in the Aggressive Hybrid Fund category that follows aggressive investment strategies. Despite being small in size, Quant Absolute Fund has registered extraordinary performance in recent years and handsomely rewarded its investors. The fund has topped the returns chart across time frames. More importantly, Quant Midcap Fund stands out in the category in terms of risk-adjusted returns.
Fund Snapshot - Quant Absolute Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
Quant Absolute Fund invests predominantly in equities with moderate exposure to debt. The fund is quick in its approach to shift allocation between equity, debt, and cash depending on the market conditions, though it maintains an equity-oriented portfolio and has recorded a higher churn rate of over 70 to 275%. Quant Absolute Fund has proved its ability to reward investors with superior gains over the long run.
Best Aggressive Hybrid Fund to Invest in 2023 #3: HDFC Hybrid Equity Fund
Launched in September 2000, HDFC Hybrid Equity Fund is one of the oldest and popular funds in the Aggressive Hybrid Fund category. The fund invests in a mix of equity and debt and utilises sound risk management processes to deal with market volatility. Notably, the fund struggled to keep pace with the benchmark and many of its peers between 2018 and early 2020. Nonetheless, HDFC Hybrid Equity Fund made comeback once the market started trending upward.
Fund Snapshot - HDFC Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
HDFC Hybrid Equity Fund has a reliable track record of delivering decent risk-adjusted returns over longer time periods. The fund carries an extremely low portfolio turnover ratio of less than 10% which shows its preference to stay invested for the long term and the high conviction the fund has in its holdings. Following a sound investment process and with an experienced fund manager at the helm, HDFC Hybrid Equity Fund has the ability to deliver remarkably over complete market cycles.
Best Aggressive Hybrid Fund to Invest in 2023 #4: ICICI Pru Equity & Debt Fund
Launched in November 1999, ICICI Prudential Equity & Debt Fund has a track record of over two decades to its credit. ICICI Prudential Equity & Debt Fund has stood among the top performers in the Aggressive Hybrid Fund category on many occasions in the past, even though the fund has at times struggled in shorter time periods. Moreover, the fund has managed to reward investors well for the level of risk taken as denoted by recording superior risk-adjusted returns over the long run.
Fund Snapshot - ICICI Pru Equity & Debt Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
ICICI Prudential Equity & Debt Fund invests across market capitalisation, though it maintains a large-cap bias. For the debt portion, the fund intends to tactically allocate to longer duration fixed income securities with credit rating AA and above, which offer reasonable accrual. ICICI Prudential Equity & Debt Fund has a highly experienced fund manager at the helm, Mr S. Naren, who is known specifically for his contrarian approach and value style of investing, which provides a positive outlook to the fund.
Best Aggressive Hybrid Fund to Invest in 2023 #5: Mirae Asset Hybrid Equity Fund
Launched in July 2015, Mirae Asset Hybrid Equity Fund is a cautiously managed scheme in the Aggressive Hybrid Fund category. The fund has registered strong growth since its inception and was quick to make a mark and establish a superior track record for itself. Over longer time period of 5 years and 7 years, the fund has outperformed the benchmark - CRISIL Hybrid 35+65 - Aggressive Index by a decent margin and has also outpaced many of its peers.
Fund Snapshot - Mirae Asset Hybrid Equity Fund
Past performance is not an indicator of future returns
Portfolio data as of January 31, 2023
Returns and NAV data as of February 27, 2023. Regular Plan - Growth Option considered
(Source: ACE MF)
It follows prudent investment strategies and is well capable of delivering better returns, while keeping the overall risk at reasonable levels. Backed by strong risk management processes and prudent approach to valuations, Mirae Asset Hybrid Equity Fund is well poised to handle market volatility and downswings, as well as capitalising on the market uptrends. The fund managers have managed to keep its volatility at a reasonable level and have been able to deliver on the returns front, thus compensating investors well for the level of risk taken.
This completes our list of the five best Aggressive Hybrid Mutual Funds to invest in 2023. If you wish to have super compressive and detailed research reports on the best mutual funds to invest in 2023 and other diversified equity mutual funds to invest in, subscribe to PersonalFN's premium research service, FundSelect.
PersonalFN's FundSelect service provides insightful and practical guidance on the mutual fund schemes to Buy, Hold, and Sell. You also get access to our special research reports.
At PersonalFN, we apply a host of qualitative and quantitative parameters using our proprietary S.M.A.R.T score matrix.
S - Systems and Processes
M - Market Cycle Performance
A - Asset Management Style
R - Risk-Reward Ratios
T - Performance Track Record
The stringent process has helped our valued mutual fund research subscribers to own some of the best mutual fund schemes in their investment portfolio with a commendable long-term performance track record. PersonalFN's service is apt if you are looking for insightful guidance and recommendations on some worthy funds having high growth potential in the years to come.
If you are serious about investing in a rewarding mutual fund scheme, subscribe now!
Disclaimer:
The schemes mentioned above are selected on the basis of PersonalFN's SMART Score, which considers various quantitative and qualitative parameters to arrive at fundamentally sound and reliable mutual fund schemes. These schemes may or may not be suitable for you. Hence, it is necessary that you understand your risk appetite and suitability well in case you consider investing in any of these funds. If unsure, do consult your SEBI registered investment advisor.
This does not constitute investment advice. Returns mentioned herein are in no way a guarantee or promise of future returns. Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully before investing.
DIVYA GROVER is the co-editor for FundSelect, the flagship research service of PersonalFN. She is also the co-editor of DebtSelect. Divya is an avid reader which helps her in analysing industry trends and producing insightful articles for PersonalFN’s popular newsletter – Daily Wealth letter, read by over 1.5 lakh subscribers.
Divya joined PersonalFN in 2019 and has since then used stringent quantitative and qualitative parameters to analyse funds to provide honest and unbiased research to investors. She endeavours to enable investors to make an informed investment decision and thereby safeguard their wealth.