When it comes to long-term wealth creation, investors often stick to equity or debt funds. However, Hybrid Mutual Funds have shown that a balanced allocation between equity, debt, and sometimes gold can deliver solid returns while reducing risk. Over the last 10 years, some hybrid funds have given 290% to 420% absolute returns, turning ₹ 1 Lakh investment into ₹ 3.9 Lakhs to ₹ 5.2 Lakhs. In this article, we will cover what hybrid mutual funds are, how we short-listed the top performers, and the 10 best hybrid mutual funds that created wealth for investors in the past decade.
Earlier we wrote about 10 Mutual Funds Outperformed in Last 1 Year with 37% to 82% Returns.
What are Hybrid Mutual Funds?
Hybrid mutual funds invest in a mix of asset classes – typically equities, debt, and sometimes commodities like gold. The idea is to reduce risk through diversification while still capturing growth potential from equities. There are different types such as:
- Aggressive Hybrid Funds (65-80% in equity)
- Balanced Advantage Funds (dynamic equity allocation)
- Multi Asset Funds (mix of equity, debt, gold, and international exposure)
- Conservative Hybrid Funds (higher debt allocation)
How We Shortlisted These Funds
For this article:
- We considered all categories of hybrid funds – Balanced Advantage, Aggressive Hybrid, Multi Asset, and even Children’s Funds.
- Shortlisted based on 10-year annualised returns (CAGR).
- Filtered Top-10 Hybrid Mutual Funds that outperformed and generated 290% to 420% returns
Data from ValueResearch/Moneycontrol as on 11-Sep-2025.
10 Hybrid Mutual Funds That Outperformed in 10 Years
Below are the funds along with their 10-year CAGR, absolute returns, and wealth creation potential:
| Fund Name | 10 Yr CAGR (%) | Absolute Returns | ₹ 1 Lakh Became |
|---|---|---|---|
| Quant Multi Asset Allocation Fund | 18.0% | 420% | ₹ 5.21 Lakhs |
| ICICI Prudential Equity & Debt Fund | 17.1% | 387% | ₹ 4.87 Lakhs |
| ICICI Prudential Multi Asset Fund | 17.0% | 385% | ₹ 4.85 Lakhs |
| Quant Aggressive Hybrid Fund | 16.8% | 374% | ₹ 4.74 Lakhs |
| Kotak Multi Asset Omni FoF | 15.7% | 329% | ₹ 4.29 Lakhs |
| HDFC Balanced Advantage Fund | 15.3% | 317% | ₹ 4.17 Lakhs |
| Kotak Aggressive Hybrid Fund | 15.0% | 304% | ₹ 4.04 Lakhs |
| HDFC Children’s Fund | 14.7% | 296% | ₹ 3.96 Lakhs |
| Mirae Asset Aggressive Hybrid Fund | 14.6% | 293% | ₹ 3.93 Lakhs |
| Edelweiss Aggressive Hybrid Fund | 14.5% | 290% | ₹ 3.90 Lakhs |
Investors may also want to explore 15 Mutual Funds Outperformed in Last 3 Years with 120% to 380% Returns.
Deep Dive into Each Fund
1. Quant Multi Asset Allocation Fund
- Fund Objective: Invests across equity, debt, and gold for diversified wealth creation.
- Annualised Returns:
- 3 Years: 20.4%
- 5 Years: 27.7%
- 10 Years: 18.0%
- Who Can Invest: Suitable for aggressive investors looking for diversification across multiple assets.
- Risk Factors:
- High volatility due to multi-asset mix
- Concentrated bets on certain asset classes
This fund is among 5 Best Mutual Funds to invest as per ChatGPT in 2025.
2. ICICI Prudential Equity & Debt Fund
- Fund Objective: Balanced portfolio with 65-80% in equities and the rest in debt.
- Annualised Returns:
- 3 Years: 19.7%
- 5 Years: 25.9%
- 10 Years: 17.1%
- Who Can Invest: Investors looking for steady long-term growth with moderate risk.
- Risk Factors:
- Market risk due to large equity exposure
- Interest rate fluctuations affecting debt returns
3. ICICI Prudential Multi Asset Fund
- Fund Objective: Diversified across equity, debt, and commodities for balanced returns.
- Annualised Returns:
- 3 Years: 20.1%
- 5 Years: 24.8%
- 10 Years: 17.0%
- Who Can Invest: Ideal for investors seeking all-in-one exposure.
- Risk Factors:
- Gold and international exposure may underperform at times
- High volatility in equity markets
We wrote a detailed analysis 1.5 years back about this Hybrid Fund that This Hybrid Mutual Fund turned 1 Lakh to 31 Lakhs in last 20 years.
4. Quant Aggressive Hybrid Fund
- Fund Objective: Aggressive equity-oriented hybrid fund with tactical allocation.
- Annualised Returns:
- 3 Years: 12.4%
- 5 Years: 23.5%
- 10 Years: 16.8%
- Who Can Invest: Aggressive investors comfortable with high equity exposure.
- Risk Factors:
- High risk due to equity focus
- Market timing risk
5. Kotak Multi Asset Omni FoF
- Fund Objective: Fund of funds approach investing in equity, debt, and gold.
- Annualised Returns:
- 3 Years: 19.3%
- 5 Years: 21.0%
- 10 Years: 15.7%
- Who Can Invest: Moderate investors who want diversification without direct stock exposure.
- Risk Factors:
- Higher expense ratio due to FoF structure
- Dependency on underlying schemes’ performance
6. HDFC Balanced Advantage Fund
- Fund Objective: Dynamically allocates between equity and debt.
- Annualised Returns:
- 3 Years: 18.8%
- 5 Years: 24.2%
- 10 Years: 15.3%
- Who Can Invest: Conservative investors who want dynamic asset allocation.
- Risk Factors:
- Equity market volatility
- Debt market interest rate risk
This fund is part of our earlier article on 5 Best Balanced Mutual Funds to Invest in 2025 Based on Rolling Returns.
7. Kotak Aggressive Hybrid Fund
- Fund Objective: Equity-oriented hybrid with 65-80% allocation in equity.
- Annualised Returns:
- 3 Years: 16.0%
- 5 Years: 21.1%
- 10 Years: 15.0%
- Who Can Invest: Suitable for long-term investors with moderate to high risk appetite.
- Risk Factors:
- Equity-heavy allocation increases risk
- May underperform in bearish markets
8. HDFC Children’s Fund
- Fund Objective: Long-term wealth creation for child’s future needs.
- Annualised Returns:
- 3 Years: 15.3%
- 5 Years: 19.4%
- 10 Years: 14.7%
- Who Can Invest: Parents planning for child’s higher education or marriage.
- Risk Factors:
- Long lock-in horizon recommended
- Market downturns may impact near-term goals
9. Mirae Asset Aggressive Hybrid Fund
- Fund Objective: Balanced portfolio with equity dominance.
- Annualised Returns:
- 3 Years: 14.3%
- 5 Years: 17.4%
- 10 Years: 14.6%
- Who Can Invest: Ideal for long-term investors preferring brand-backed stable funds.
- Risk Factors:
- Market volatility affects returns
- Conservative investors may find risk high
Investors may also read 12 Mutual Funds Outperformed in Last 2 Years with 75% to 118% Returns.
10. Edelweiss Aggressive Hybrid Fund
- Fund Objective: Invests in equity and debt with aggressive allocation.
- Annualised Returns:
- 3 Years: 18.7%
- 5 Years: 21.9%
- 10 Years: 14.5%
- Who Can Invest: Suitable for investors wanting aggressive allocation with Edelweiss brand.
- Risk Factors:
- High equity exposure
- Short-term volatility
Conclusion
Hybrid Mutual Funds have emerged as an excellent category for investors seeking both growth and stability. The above 10 hybrid funds generated 290% to 421% absolute returns in the last 10 years, proving that diversification works. Investors should match their risk appetite, financial goals, and investment horizon before choosing the right hybrid fund.
If you are a long-term investor, these funds can be a good addition to your portfolio for steady wealth creation.
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