Aggressive hybrid funds: 5 schemes gave 15%+ SIP returns in 10 years; check here

Aggressive hybrid funds are often overlooked by investors chasing returns in pure equity categories such as large-cap, flexi-cap or small-cap funds. Yet the category has quietly built a strong long-term performance record while following a more balanced investment approach.

Unlike diversified equity funds, aggressive hybrid funds invest 65-80% of their portfolio in equities, with the remaining allocation typically invested in debt and money market instruments. The equity portion aims to generate capital appreciation, while the debt allocation helps cushion portfolios during volatile market phases. Since these funds maintain at least 65% equity exposure, they are treated as equity funds for taxation purposes.

The latest SIP return data shows that several aggressive hybrid funds have delivered double-digit annualised SIP returns across three-, five- and 10-year periods.

A 10-year investment horizon captures multiple bull and bear market cycles, making it a useful indicator of a fund's ability to generate sustained returns.

Among aggressive hybrid funds, Quant Aggressive Hybrid Fund tops the list with an annualised SIP return of 18.57%, followed by Bank of India Mid & Small Cap Equity & Debt Fund at 17.88%.

One notable trend is that even the 10th-ranked scheme generated an annualised SIP return exceeding 13% over a decade. This suggests that several funds in the category have been able to create long-term wealth despite maintaining a meaningful allocation to debt.

The rankings change over a five-year period, but several familiar names continue to dominate the leaderboard.

ICICI Prudential Retirement Fund - Hybrid Aggressive Plan leads the category with a five-year annualised SIP return of 17.66%, followed by Bank of India Mid & Small Cap Equity & Debt Fund at 16.56%. Quant Aggressive Hybrid Fund and ICICI Prudential Equity & Debt Fund also remain among the top performers.

Over the past three years, returns have naturally moderated as markets became more volatile. Even so, several aggressive hybrid funds have continued to deliver annualised SIP returns in double digits.

ICICI Prudential Retirement Fund - Hybrid Aggressive Plan leads the three-year rankings with a SIP return of 14.70%, followed by Quant Aggressive Hybrid Fund and Bank of India Mid & Small Cap Equity & Debt Fund.

While the rankings change across investment horizons, a few schemes continue to feature repeatedly, suggesting that their performance has extended beyond short-term market movements.

The latest performance data shows that aggressive hybrid funds have quietly delivered competitive long-term SIP returns while following a diversified investment strategy. The top-performing scheme generated an annualised 18.57% SIP return over 10 years, while several others consistently remained in double digits across three-, five- and 10-year periods.

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