Hybrid Mutual Funds have consistently proven that combining equity, debt, and sometimes commodities can generate impressive long-term wealth. While they may not always attract the same attention as pure equity funds, their stability and consistent growth make them an excellent choice for long-term investors. Over the last 20 years, certain hybrid mutual funds have delivered remarkable absolute returns ranging from 1,200% to 2,020%, turning a small investment of ₹1 lakh into ₹13 lakhs to ₹21 lakhs. In this article, we dive into the best long-term performers, their CAGR, absolute returns, and wealth creation potential.
Earlier we analysed on 10 Hybrid Mutual Funds That Outperformed with 290% to 420% Absolute Returns in 10 Years.
How We Shortlisted These Funds?
- Considered all hybrid fund categories:
- Aggressive Hybrid Funds
- Balanced Advantage Funds
- Multi Asset Funds
- Equity & Debt Funds
- Children’s Funds
- Evaluated 20-year CAGR, absolute returns, and long-term performance consistency across 3, 5, 10, 15, and 20 years.
- Since there were no direct plans 20 years back, we have considered only regular plans in mutual fnds. Regular plans would have higher expense ratio compared to direct plans.
- Data sourced from ValueResearch/Moneycontrol as on 19-Nov-2025.
20-Year Performance of Top 10 Hybrid Mutual Funds
Below is the long-term performance summary including 20-year CAGR, absolute returns, and wealth creation from a ₹1 lakh investment.
(Values auto-calculated based on CAGR)
| Fund | 20 Yr CAGR | 20 Yr Absolute Returns | 1 Lakh Became |
|---|---|---|---|
| ICICI Prudential Multi Asset Fund | 16.5% | 2020.89% | ₹21,20,892 |
| HDFC Balanced Advantage Fund | 15.5% | 1685.01% | ₹17,85,006 |
| ICICI Prudential Equity & Debt Fund | 15.0% | 1536.65% | ₹16,36,654 |
| Canara Robeco Equity Hybrid Fund | 14.3% | 1348.52% | ₹14,48,520 |
| Kotak Multi Asset Omni FoF Regular Plan | 14.3% | 1348.52% | ₹14,48,520 |
| HDFC Hybrid Equity Fund | 14.2% | 1323.38% | ₹14,23,384 |
| HDFC Children’s Fund | 14.1% | 1298.66% | ₹13,98,662 |
| DSP Aggressive Hybrid Fund | 13.9% | 1250.44% | ₹13,50,437 |
| Tata Aggressive Hybrid Fund | 13.7% | 1203.79% | ₹13,03,795 |
| Quant Aggressive Hybrid Fund | 13.7% | 1203.79% | ₹13,03,795 |
Deep Dive into Each Hybrid Mutual Fund
(Note: We considered only regular plans, as direct plans did not exist 20 years ago.)
#1 – ICICI Prudential Multi Asset Fund
- Fund Objective:
- Invests across equity, debt, and gold for broad diversification.
- Aims for long-term capital appreciation with risk balancing.
- Performance Highlights:
- 3-Year Returns: 19.4%
- 5-Year Returns: 23.7%
- 10-Year Returns: 16.2%
- 15-Year Returns: 14.2%
- 20-Year Returns: 16.5%
- Who Should Invest:
- Investors looking for multi-asset stability with strong long-term growth.
- Risk Factors:
- Exposure to gold and commodities can add short-term volatility.
#2 – HDFC Balanced Advantage Fund
- Fund Objective:
- Dynamically adjusts between equity and debt to reduce market volatility.
- Performance Highlights:
- 3-Year Returns: 18.4%
- 5-Year Returns: 21.8%
- 10-Year Returns: 14.6%
- 15-Year Returns: 13.3%
- 20-Year Returns: 15.5%
- Who Should Invest:
- Investors seeking dynamic asset allocation with lower drawdowns.
- Risk Factors:
- Market timing risk due to dynamic model.
We analysed this fund among the 5 Best Balanced Mutual Funds to Invest in 2025 Based on Rolling Returns.
#3 – ICICI Prudential Equity & Debt Fund
- Fund Objective:
- Balanced allocation with 65–80% in equities and remaining in high-quality debt.
- Performance Highlights:
- 3-Year Returns: 19.2%
- 5-Year Returns: 24.4%
- 10-Year Returns: 16.3%
- 15-Year Returns: 15.5%
- 20-Year Returns: 15.0%
- Who Should Invest:
- Investors wanting stable long-term performance with moderate risk.
- Risk Factors:
- Debt portion may be impacted by interest rate changes.
#4 – Canara Robeco Equity Hybrid Fund
- Fund Objective:
- Invests predominantly in equity with a supporting debt component.
- Performance Highlights:
- 3-Year Returns: 13.6%
- 5-Year Returns: 14.2%
- 10-Year Returns: 12.7%
- 15-Year Returns: 12.6%
- 20-Year Returns: 14.3%
- Who Should Invest:
- Moderate investors wanting stability + equity upside.
- Risk Factors:
- Lower equity allocation may underperform in sharp bull markets.
This fund also featured in our earlier article at 10 Hybrid Mutual Funds That Outperformed with 428% to 754% Absolute Returns in 15 Years.
#5 – Kotak Multi Asset Omni FoF
- Fund Objective:
- Fund-of-funds structure investing in equity, debt, and gold.
- Performance Highlights:
- 3-Year Returns: 19.2%
- 5-Year Returns: 19.4%
- 10-Year Returns: 15.3%
- 15-Year Returns: 12.9%
- 20-Year Returns: 14.3%
- Who Should Invest:
- Investors wanting diversification via FoF structure.
- Risk Factors:
- Slightly higher expense ratio due to FoF nature.
#6 – HDFC Hybrid Equity Fund
- Fund Objective:
- Balanced equity–debt hybrid with focus on long-term capital appreciation.
- Performance Highlights:
- 3-Year Returns: 12.1%
- 5-Year Returns: 15.4%
- 10-Year Returns: 12.5%
- 15-Year Returns: 12.8%
- 20-Year Returns: 14.2%
- Who Should Invest:
- Suitable for conservative to moderate investors.
- Risk Factors:
- Equity volatility can affect short-term performance.
#7 – HDFC Children’s Fund
- Fund Objective:
- Long-term investing aimed at funding children’s financial goals.
- Performance Highlights:
- 3-Year Returns: 14.5%
- 5-Year Returns: 16.6%
- 10-Year Returns: 13.8%
- 15-Year Returns: 13.8%
- 20-Year Returns: 14.1%
- Who Should Invest:
- Parents planning for education/marriage goals.
- Risk Factors:
- Long horizon recommended; may be volatile in short term.
#8 – DSP Aggressive Hybrid Fund
- Fund Objective:
- Aggressive equity-focused hybrid fund.
- Performance Highlights:
- 3-Year Returns: 16.0%
- 5-Year Returns: 15.1%
- 10-Year Returns: 13.0%
- 15-Year Returns: 11.6%
- 20-Year Returns: 13.9%
- Who Should Invest:
- Aggressive investors comfortable with volatility.
- Risk Factors:
- Heavy equity allocation increases short-term risk.
Meta AI also recommends this fund which we discussed at Best Mutual Funds to Invest in 2025 as per Meta AI.
#9 – Tata Aggressive Hybrid Fund
- Fund Objective:
- Invests in equity and debt with aggressive tilt.
- Performance Highlights:
- 3-Year Returns: 11.4%
- 5-Year Returns: 14.3%
- 10-Year Returns: 10.5%
- 15-Year Returns: 11.6%
- 20-Year Returns: 13.7%
- Who Should Invest:
- Long-term investors with moderate to high risk appetite.
- Risk Factors:
- High volatility due to equity allocation.
#10 – Quant Aggressive Hybrid Fund
This is among the top performing hybrid funds in last 5 years which we discussed earlier at 10 Hybrid Mutual Funds That Outperformed with 172% to 250% Absolute Returns in 5 Years.
- Fund Objective:
- Tactical, high-conviction aggressive hybrid strategy.
- Performance Highlights:
- 3-Year Returns: 11.7%
- 5-Year Returns: 20.8%
- 10-Year Returns: 16.0%
- 15-Year Returns: 13.4%
- 20-Year Returns: 13.7%
- Who Should Invest:
- Suitable for aggressive investors looking for tactical opportunities.
- Risk Factors:
- High volatility due to dynamic allocation and concentrated calls.
Conclusion
Hybrid Mutual Funds have proven to be powerful long-term wealth creators. Over the last 20 years, these top-performing schemes transformed a ₹1 lakh investment into ₹13 lakhs to over ₹21 lakhs. Their diversified allocation across equity, debt, and commodities helps reduce risk while delivering consistent returns.
These funds are ideal for long-term investors seeking stability, growth, and smoother market experience compared to pure equity schemes.
- 10 Hybrid Mutual Funds That Turned ₹ 1 Lakh Into ₹ 13–21 Lakhs in 20 Years - November 19, 2025
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- 9 Top Mutual Funds That Fell 18% – 20% From Their 52-Week Highs - November 17, 2025