Traditional investors generally look for investment options that can provide them with better returns than a fixed deposit. An aggressive hybrid mutual fund can be a suitable choice for them as it balances the risk and return in the portfolio.
In today’s blog post, we will give you an overview of aggressive mutual funds, along with the best aggressive hybrid mutual funds to invest in India in 2026.
What are Aggressive Hybrid Mutual Funds?
An aggressive hybrid mutual fund is a category of mutual fund that invests primarily in equity and debt securities. Based on the guidelines issued by the Securities and Exchange Board of India (SEBI), the aggressive hybrid funds usually invest around 65% to 80% of their assets in equity and related instruments, whereas the remaining 20% to 35% will be invested in debt instruments. This helps an investor in managing growth and stability in their investment portfolio.
Best Aggressive Hybrid Mutual Funds to Invest in India 2026
The list of the best aggressive hybrid mutual funds to invest in India 2026 is as follows:
| Scheme Name | AUM (Cr.) | 1 Year | 3 Years | 5 Years |
|---|---|---|---|---|
| SBI Equity Hybrid Reg Gr | 83,353.48 | 4.26 | 13.75 | 11.34 |
| ICICI Pru Equity & Debt Gr | 50,367.73 | 3.13 | 16.7 | 16.89 |
| Mirae Asset Aggressive Hybrid Reg Gr | 9,363.48 | 3.28 | 12.16 | 10.68 |
| Kotak Aggressive Hybrid Fund Reg Gr | 8,641.94 | 4.76 | 13.77 | 12.29 |
| HSBC Aggressive Hybrid Fund Reg Gr | 5,423.98 | 6.59 | 13.92 | 10.9 |
| Edelweiss Aggr Hybrid Reg Gr | 3,627.22 | 1.85 | 14.58 | 13.62 |
| Quant Aggressive Hybrid Fund Gr Reg Plan | 2,024.48 | 9.93 | 14.69 | 13.73 |
| Bandhan Aggr Hyb Fund Reg Gr | 1,919.11 | 7.1 | 14.44 | 12.27 |
| Bank of India Mid & Small Cap Equity & Debt Reg Gr | 1,481.51 | 8.65 | 20.11 | 16.78 |
| Navi Aggressive Hybrid Reg Gr | 110.85 | 4.36 | 11.39 | 10.47 |
Advantages of Investing in Aggressive Hybrid Funds
The key advantages of investing in aggressive hybrid funds are as follows:
- Balanced Approach: Investment in aggressive hybrid funds offers the advantage of risk and return. Equity allocation in the portfolio allows an investor to take advantage of high equity returns, whereas debt in the portfolio provides stability during market downturns.
- Diversification: The hybrid aggressive fund provides the benefit of diversification of the portfolio across different asset classes. It reduces the overall risk in the portfolio because poor performance in one asset class may be balanced by the other.
- Professional Management: As a professional fund manager manages the mutual fund, they actively decide the allocation between the equity and debt depending upon the market conditions.
- Monthly Investments: One can easily invest a small amount through monthly investments in hybrid aggressive funds. SIPs provide the benefit of rupee cost averaging and reduce the impact of market volatility.
Read Also: Best Long-Term Mutual Funds to Invest in India
Features of Aggressive Hybrid Mutual Funds
The key features of aggressive hybrid mutual funds are as follows:
- Equity for Growth: Equity allocation in the portfolio allows an investor to capture the growth of equity in their portfolio. This helps in increasing the returns in the portfolio.
- Stability: The debt component in the portfolio of hybrid aggressive mutual funds provides stability in the portfolio and reduces the volatility during market fluctuations.
- Capital Gains: The gains arising from investment in hybrid aggressive mutual funds are not taxed based on the investor’s income slab. They are taxed based on the capital gain rules laid down by the income tax authorities.
- Flexibility: Aggressive hybrid mutual funds come with flexible investment options such as lump sum and SIPs. Hence, one can choose an investment mode depending on their needs.
- Liquidity: There is no lock-in period while investing in hybrid aggressive mutual funds. Hence, one can easily withdraw their funds based on their need.
Factors to Consider While Investing in Aggressive Hybrid Funds
There are certain factors that an investor should consider before investing in an aggressive hybrid fund; a few of these factors are mentioned below:
- Investment Objective: Before investing in any hybrid aggressive fund, investors are required to identify their financial objective first. Investment in aggressive hybrid funds is often suitable for medium-term goals with a duration of 3-5 years.
- Risk Tolerance: As a hybrid aggressive fund invests a certain portion of its portfolio in equity, this carries market risk. Hence, the performance of funds can be volatile in the short-term period. Therefore, only investors who are comfortable with short-term market fluctuations can invest in aggressive hybrid funds.
- Asset Allocation: Based on the investment guidelines laid down by the SEBI, the fund can change its equity and debt allocation based on the market conditions. Hence, one should review how the fund balances their portfolio so that the expected returns match their expectation.
- Past Performance: One must conduct a detailed analysis of the past performance of the fund over different market cycles. This helps an investor in analysing how a fund performs during different market cycles.
Who Should Invest in Aggressive Hybrid Mutual Funds
Certain types of investors should invest in Aggressive Hybrid Mutual Funds; a few of such investors are as follows:
- First-Time Investor: Investors who do not have any experience investing in equity can consider a hybrid aggressive fund as an investment option. The debt portion in the portfolio helps in reducing the overall risk in the portfolio and provides stability during market volatility.
- Long Investment Horizon: Investors with an investment horizon of 3 to 5 years can opt for investing in hybrid aggressive category funds. As the fund creates wealth in the long run, it is suitable for an investment horizon of up to 5 years.
- Better than FD Returns: Those who are seeking investment options better than fixed deposits can opt for investing in hybrid aggressive funds. These funds potentially earn higher inflation-beating returns.
- Balanced Approach: Investors who have a balanced approach to investing and do not want to take high risk can invest in hybrid aggressive funds. Aggressive hybrid funds offer a mix of equity for growth and debt for stability, hence making them suitable for balanced investing.
Read Also:Top 10 Best Equity Mutual Funds in India
Conclusion
On a concluding note, investment in an aggressive hybrid mutual fund can be a suitable investment option for those investors who prefer a balance between growth and stability. Investment in this fund offers an opportunity to earn better returns than traditional investment options, such as fixed deposits, etc. The debt allocation in the portfolio of aggressive hybrid mutual funds provides stability in the portfolio in case of market volatility, and equity allocation manages the growth. However, these funds also carry certain risks; therefore, it is advisable to consult your investment advisor before making any investment in an aggressive hybrid fund. For more market insights and investment opportunities, start your mutual fund journey with Pocketful. Explore a wide range of mutual funds through an easy-to-use platform designed for both new and experienced investors.
Frequently Asked Questions (FAQs)
What are aggressive hybrid mutual funds?
An aggressive hybrid mutual fund is a category of hybrid mutual fund that invests a smaller portion of its portfolio in debt or fixed income securities, whereas the larger portion invests in equity and equity-oriented securities.
Does investment in an aggressive mutual fund provide guaranteed returns?
No, investment in an aggressive mutual fund does not offer guaranteed returns. The portfolio of these funds carries securities returns that are linked to the market.
What is the maximum percentage that aggressive hybrid funds invest in equity?
Based on the regulation laid down by the Securities and Exchange Board of India (SEBI), the aggressive hybrid funds can invest around 65% to 80% in equities, whereas the remaining amount can be invested in debt instruments.
Can I invest through SIP in an aggressive hybrid mutual fund?
Yes, one can invest in an aggressive hybrid mutual fund through SIP and lump sum.
Is there any lock-in period in an aggressive hybrid mutual fund?
No, aggressive hybrid mutual funds do not have any lock-in period. They are open-ended funds; one can invest and withdraw anytime from this fund.
