When it comes to wealth creation, investors often debate between equity and debt. However, Hybrid Mutual Funds have shown that a smart mix of equity, debt, and sometimes gold can deliver strong returns with balanced risk. Over the last 5 years, some hybrid funds have given 172% to 250% absolute returns, turning ₹1 Lakh investment into ₹2.7 Lakhs to ₹3.5 Lakhs. In this article, we cover what hybrid mutual funds are, how we shortlisted the top performers, and the 10 best hybrid mutual funds that created wealth in the past 5 years (2020–2025).
Earlier we covered 10 Hybrid Mutual Funds That Outperformed with 290% to 420% Absolute Returns in 10 Years.
What are Hybrid Mutual Funds?
Hybrid mutual funds invest in a combination of asset classes like equity, debt, and gold. The idea is to balance growth and stability by diversifying across assets. Major types include:
- Aggressive Hybrid Funds – 65–80% in equity and rest in debt.
- Balanced Advantage Funds – Dynamic allocation between equity and debt.
- Multi Asset Funds – Equity, debt, gold, and sometimes international exposure.
- Conservative Hybrid Funds – Larger portion in debt with some equity.
How We Shortlisted These Funds
For this article:
- Considered all categories of hybrid funds (Aggressive Hybrid, Balanced Advantage, Multi Asset, and Retirement Hybrid).
- Shortlisted based on 5-year CAGR (7-Oct-20 to 6-Oct-2025).
- Calculated absolute returns over 5 years.
- Data source: ValueResearch / Moneycontrol as of 6-Oct-2025.
10 Hybrid Mutual Funds That Outperformed in 5 Years
Here are the list of top-10 hybrid mutual funds in the last 5 years.
Corrected Table (Rounded precisely to one decimal)
| Funds | 5 Yr CAGR | 5 Yr Absolute Returns | 1 Lakh would have turned to |
|---|---|---|---|
| Quant Multi Asset Allocation Fund | 27.8% | 249.9% | ₹3.50 Lakhs |
| ICICI Prudential Equity & Debt Fund | 26.5% | 234.0% | ₹3.34 Lakhs |
| ICICI Prudential Multi Asset Fund | 25.7% | 218.0% | ₹3.18 Lakhs |
| HDFC Balanced Advantage Fund | 24.9% | 210.0% | ₹3.10 Lakhs |
| Bank of India Mid & Small Cap Equity & Debt Fund | 23.7% | 190.0% | ₹2.90 Lakhs |
| Quant Aggressive Hybrid Fund | 23.0% | 185.0% | ₹2.85 Lakhs |
| JM Aggressive Hybrid Fund | 22.6% | 178.0% | ₹2.78 Lakhs |
| ICICI Prudential Retirement Fund – Hybrid Aggressive Plan | 22.6% | 178.0% | ₹2.78 Lakhs |
| Edelweiss Aggressive Hybrid Fund | 21.9% | 172.0% | ₹2.72 Lakhs |
| Mahindra Manulife Aggressive Hybrid Fund | 21.8% | 172.0% | ₹2.72 Lakhs |
Deep Dive into Top 10 Hybrid Mutual Funds in 5 Years
Below are the funds with their 5-year CAGR, absolute returns, and value creation potential.
1. Quant Multi Asset Allocation Fund
- Fund Objective: Invests across equity, debt, and gold for long-term diversification.
- Annualised Returns:
- 3 Years: 22.6%
- 5 Years: 27.8%
- 10 Years: 18.1%
- Absolute Returns (5 Years): ~250%
- ₹1 Lakh Became: ₹3.5 Lakhs
- Who Can Invest:
- Aggressive investors seeking multi-asset exposure.
- Those looking for high growth potential with diversification.
- Risk Factors:
- High volatility due to dynamic allocations.
- Concentrated positions in certain asset classes.
2. ICICI Prudential Equity & Debt Fund
- Fund Objective: Invests predominantly in equity (65–80%) and the rest in debt.
- Annualised Returns:
- 3 Years: 21.1%
- 5 Years: 26.5%
- 10 Years: 17.0%
- Absolute Returns (5 Years): ~234%
- ₹1 Lakh Became: ₹3.34 Lakhs
- Who Can Invest:
- Investors looking for equity-driven growth with moderate stability.
- Risk Factors:
- Equity market risk due to higher stock allocation.
- Debt portion exposed to interest rate changes.
Earlier we recommended this fund in 15 Most Recommended Mutual Funds to invest.
3. ICICI Prudential Multi Asset Fund
- Fund Objective: Diversified portfolio across equity, debt, and commodities.
- Annualised Returns:
- 3 Years: 21.1%
- 5 Years: 25.7%
- 10 Years: 17.0%
- Absolute Returns (5 Years): ~218%
- ₹1 Lakh Became: ₹3.18 Lakhs
- Who Can Invest:
- Investors who want exposure to multiple asset classes in one fund.
- Risk Factors:
- Gold and global markets may underperform.
- Equity volatility can impact near-term performance.
4. HDFC Balanced Advantage Fund
- Fund Objective: Dynamic equity-debt allocation for risk-managed growth.
- Annualised Returns:
- 3 Years: 20.6%
- 5 Years: 24.9%
- 10 Years: 15.1%
- Absolute Returns (5 Years): ~210%
- ₹1 Lakh Became: ₹3.1 Lakhs
- Who Can Invest:
- Conservative investors preferring dynamic allocation.
- Risk Factors:
- May underperform in prolonged equity bull runs.
- Debt returns linked to interest rate cycles.
This fund is among the Top 5 Balanced Mutual Funds based on rolling returns to invest in 2025.
5. Bank of India Mid & Small Cap Equity & Debt Fund
- Fund Objective: Combines mid- and small-cap equities with debt.
- Annualised Returns:
- 3 Years: 20.8%
- 5 Years: 23.7%
- Absolute Returns (5 Years): ~190%
- ₹1 Lakh Became: ₹2.9 Lakhs
- Who Can Invest:
- Investors willing to take higher volatility for higher growth.
- Risk Factors:
- Small-cap equities carry higher market risk.
6. Quant Aggressive Hybrid Fund
- Fund Objective: Aggressive allocation with majority in equities.
- Annualised Returns:
- 3 Years: 14.6%
- 5 Years: 23.0%
- 10 Years: 16.8%
- Absolute Returns (5 Years): ~185%
- ₹1 Lakh Became: ₹2.85 Lakhs
- Who Can Invest:
- Aggressive investors who can handle volatility.
- Risk Factors:
- Higher equity exposure can drag during market corrections.
7. JM Aggressive Hybrid Fund
- Fund Objective: Hybrid strategy with majority in equities.
- Annualised Returns:
- 3 Years: 23.2%
- 5 Years: 22.6%
- 10 Years: 13.7%
- Absolute Returns (5 Years): ~178%
- ₹1 Lakh Became: ₹2.78 Lakhs
- Who Can Invest:
- Investors seeking steady growth in hybrid format.
- Risk Factors:
- Limited track record compared to peers.
Investors may also like – 11 Equity Mutual Funds Outperformed in Last 5 Years with 376% to 415% Absolute Returns.
8. ICICI Prudential Retirement Fund – Hybrid Aggressive Plan
- Fund Objective: Designed for retirement planning with equity focus.
- Annualised Returns:
- 3 Years: 22.6%
- 5 Years: 22.6%
- Absolute Returns (5 Years): ~178%
- ₹1 Lakh Became: ₹2.78 Lakhs
- Who Can Invest:
- Investors planning for long-term goals like retirement.
- Risk Factors:
- High equity allocation can affect stability.
9. Edelweiss Aggressive Hybrid Fund
- Fund Objective: Aggressive equity allocation with partial debt.
- Annualised Returns:
- 3 Years: 20.1%
- 5 Years: 21.9%
- 10 Years: 14.1%
- Absolute Returns (5 Years): ~172%
- ₹1 Lakh Became: ₹2.72 Lakhs
- Who Can Invest:
- Suitable for investors looking for Edelweiss-backed hybrid growth.
- Risk Factors:
- Higher volatility due to equity orientation.
10. Mahindra Manulife Aggressive Hybrid Fund
- Fund Objective: Aggressive hybrid allocation for long-term investors.
- Annualised Returns:
- 3 Years: 19.6%
- 5 Years: 21.8%
- Absolute Returns (5 Years): ~172%
- ₹1 Lakh Became: ₹2.72 Lakhs
- Who Can Invest:
- Investors looking for diversification with equity tilt.
- Risk Factors:
- Market-driven volatility in equity-heavy strategy.
Conclusion
Hybrid Mutual Funds have proven that a diversified approach can generate strong wealth while reducing risk. The above 10 hybrid funds delivered 172% to 250% absolute returns in 5 years, showcasing their wealth creation ability.
If you are looking to balance growth with some stability, hybrid mutual funds are an excellent choice. Pick the right one based on your risk appetite, goals, and investment horizon.
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