5 Hybrid Mutual Funds with 1-Year Returns between 44% to 50%

Hybrid Mutual Funds invests in equity, debt and commodities (gold / silver) based on the investment objective of the fund. Due to recent bull run many hybrid mutual funds have outperformed in the last 1 year. These hybrid funds generated 7% to 50% returns (huge variance between lowest and highest returns) in the last 1 year. Compared to equity funds, hybrid funds have lower risk as they don’t invest 100% in equity. This article provides information on 5 Hybrid Mutual Funds that yielded returns between 44% and 50% in the last 1 year from 12-Mar-2023 to 11-Mar-2024.

Also Read: 20 Equity Mutual Funds with Positive Returns every year in last 10 years

5 Hybrid Mutual Funds with 1-Year Returns between 44% to 50%

Here is the list of Top Performing Hybrid Mutual Funds in the last 1 year that generated over 44% returns.

#1 – ICICI Pru Retirement Hybrid Aggressive Fund – 1-Year Return: 50%

#2 – JM Aggressive Hybrid Fund – 1 Year Return: 48.7%

#3 – Quant Multi Asset Fund– 1 Year Return: 46.1%

#4 – ICICI Pru Child Care Gift Fund – 1-Year Return: 44%

#5 – Bank of India Mid & Small Cap Equity and Debt Fund – 1-Year Return: 43.9%

Note: We have considered all hybrid funds which include Hybrid Aggressive, Hybrid Conservative, Hybrid Balanced, Hybrid Equity Savings, Hybrid Arbitrage, Dynamic Asset Allocation and Multi Asset Allocation Funds.

5 Hybrid Mutual Funds with 1-Year Returns between 44 percent to 51% percent

5 Hybrid Mutual Funds with 1-Year Return Over 44% – Investment Objective and Performance Details

Let’s get into more information about these funds.

#1 – ICICI Pru Retirement Hybrid Aggressive Fund – 1-Year Return: 50%

Investment Objective:

An open ended hybrid scheme predominantly investing in equity and equity related securities to generate capital appreciation. The scheme may also invest in Debt, Gold/Gold ETF/units of REITs; InvITs and such other asset classes as may be permitted from time to time for income generation / wealth creation.

Performance Details

Absolute Returns of the fund (Direct Plan)

  • 1-Year Return: 50%
  • 2-Year Return: 52.5%
  • 3-Year Return: 78%
  • 5-Year Return: 130% (1 Lac would have turned to 2.3 Lacs)

Annualised Returns of the fund

  • 1-Year Return: 50%
  • 2-Year Annualised Return: 23.4%
  • 3-Year Annualised Return: 20%
  • 5-Year Annualised Return: 18.1%

Our View:

  • This is a retirement hybrid fund that invests 86% in equity and balance in debt instruments. Its equity component is 50% in large cap, 12% in midcap and balance in small cap stocks and other equity options.
  • Its top-10 equity holdings are Bharti Airtel, Ultratech, Jindal Steel, Lupin, DLF, L&T, Tech Mahindra, Inox, NMDC and Maruti.
  • Its debt portfolio consists of 5.6% in GOI bonds and 3% low risk NCD Bonds
  • Fund’s beta is 0.84 (<1 is better) and Alpha is 6.22 (positive alpha is good).
  • This fund has been a consistent performer that has generated 18% annualised returns since inception.
  • One hidden risk factor is that it has lock-in period of 5 years or till retirement age whichever is earlier.
  • While I am not against retirement mutual funds, investors should assess whether they are comfortable with 5 years lock-in period. Alternatively, one should go for other hybrid aggressive mutual funds where there is no such lock-in periods.

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#2 – JM Aggressive Hybrid Fund – 1 Year Return: 48.7%

Investment Objective:

The scheme aims at steady current income as well as long term growth of capital from a balanced portfolio of debt and equity. The scheme aims at steady current income as well as long term growth of capital from a balanced portfolio of debt and equity.

Performance Details

Absolute Returns of the fund (Direct Plan)

  • 1-Year Return: 49%
  • 2-Year Return: 70%
  • 3-Year Return: 86%
  • 5-Year Return: 143%
  • 10-Year Return: 315% (1 Lac would have turned to 4.15 Lacs)

Annualised Returns of the fund

  • 1-Year Return: 49%
  • 2-Year Annualised Return: 30%
  • 3-Year Annualised Return: 23%
  • 5-Year Annualised Return: 19%
  • 10-Year Annualised Return: 15.3%

Our View:

  • This is an aggressive hybrid fund that invests 80% in equity and 20% in debt instruments. Its equity component is 25% in large cap, 18% in midcap and balance in small cap stocks.
  • Its top-10 equity holdings are Sobha, Infosys, Tata motors, Voltas, REC, Bajaj Auto, ICICI Bank Hero Moto BoB and GE T&D.
  • Its debt portfolio consists of 7% GOI bonds and 13% low risk NCD Bonds
  • Fund’s beta is 0.79 (<1 is better) and Alpha is 10.7 (positive alpha is good).
  • This fund has been a consistent performer that has generated 15% annualised returns since inception.
  • Since invests majorly in equity and some portion in debt fund, this is for moderate to high risk category investors. Such funds can be invested for 5+ years tenure.

#3 – Quant Multi Asset Fund – 1 Year Return: 46.1%

Investment Objective:

The scheme aims to generate income and capital appreciation by investing in instruments across the three asset classes viz. Equity, Debt and Commodity.

Performance Details

Absolute Returns of the fund (Direct Plan)

  • 1-Year Return: 46.1%
  • 2-Year Return: 65%
  • 3-Year Return: 144%
  • 5-Year Return: 255%
  • 10-Year Return: 390% (1 Lac would have turned to 4.9 Lacs)

Annualised Returns of the fund

  • 1-Year Return: 46.1%
  • 2-Year Annualised Return: 28.2%
  • 3-Year Annualised Return: 34.6%
  • 5-Year Annualised Return: 28.7%
  • 10-Year Annualised Return: 17.2%

Our View:

  • This is a multi asset mutual fund (classified as hybrid as it invests in equity, debt and commodities) that invests 72% in equity, 8% in debt instruments, 10% in commodities and balance it holds in cash. Its equity component is 65% in large cap and balance in midcap/small cap stocks.
  • Its top-10 equity holdings are Reliance, Jio Financials, Orchid Pharma, Adani Power, HUDC, Gail, Hindalco, Britannia, Jindal Steel and Ashok Leyland
  • Its debt portfolio consists of 5% zero risk GOI bonds and 3% low risk NCD Bonds.
  • As part of commodities portfolio, it invests 10% in gold and silver ETFs through other ETF / mutual fund schemes.
  • Fund’s beta is 0.7 (<1 is better) and Alpha is 9.3 (positive alpha is good).
  • This fund has been a consistent performer that has generated 16% annualised returns since inception.
  • This is a multi-asset fund that invests in equity, debt and commodities (gold/silver). Moderate to high risk investors can invest in such funds for a medium to long term.

#4 – ICICI Pru Child Care Gift Fund – 1-Year Return: 44%

Investment Objective:

The plan seeks to generate capital appreciation by creating a portfolio that is invested in equity and equity related securities (65-100%), and debt and money market instruments, securitised Debt & Cash (including money at call) (0-35%).

Performance Details

Absolute Returns of the fund (Direct Plan)

  • 1-Year Return: 44%
  • 2-Year Return: 48.6%
  • 3-Year Return: 68%
  • 5-Year Return: 110%
  • 10-Year Return: 345% (1 Lac would have turned to 4.45 Lacs)

Annualised Returns of the fund

  • 1-Year Return: 44%
  • 2-Year Annualised Return: 21.9%
  • 3-Year Annualised Return: 18.9%
  • 5-Year Annualised Return: 16%
  • 10-Year Annualised Return: 16%

Our View:

  • This is a child mutual fund scheme that invests over 80% in equity and balance in debt instruments. Its equity component is 49% in large cap and balance in midcap and balance in small cap stocks and other equity options.
  • Its top-10 equity holdings are Bharti Airtel, Ultratech, Lupin, Inopx Winds, DLF, JSW Steel, HUL, ICICI Bank, NMDC and Ambuja Cement.
  • Its debt portfolio consists of 7% in GOI bonds and 7% low risk NCD Bonds and small component
  • Fund’s beta is 0.81 (<1 is better) and Alpha is 5.77 (positive alpha is good).
  • This fund has been a consistent performer that has generated 14.7% annualised returns since inception.
  • One hidden risk factor is that like retirement mutual funds, it has lock-in period of 5 years. Means you cannot sell the mutual funds within 5 years.
  • Like I indicated earlier, while I am not against such solution based mutual funds (retirement funds or children’s mutual funds), investors should assess whether they are comfortable with 5 year lock-in period. Alternatively, one should go for other hybrid aggressive mutual funds where there is no such lock-in period and which invests in similar investment strategy.

Also Read: 10 Worst Performing Mutual Funds in the last 1 Year

#5 – Bank of India Mid & Small Cap Equity and Debt Fund – 1-Year Return: 43.9%

Investment Objective:

The scheme’s objective is to provide capital appreciation and income distribution to investors from a portfolio constituting of mid and small cap equity and equity related securities as well as fixed income securities.

Performance Details

Absolute Returns of the fund (Direct Plan)

  • 1-Year Return: 43.9%
  • 2-Year Return: 50%
  • 3-Year Return: 95%
  • 5-Year Return: 167% (1 Lac would have turned to 2.67 Lacs)

Annualised Returns of the fund

  • 1-Year Return: 43.9%
  • 2-Year Annualised Return: 22.4%
  • 3-Year Annualised Return: 24.8%
  • 5-Year Annualised Return: 21.7%

Our View:

  • This is an aggressive hybrid fund that invests 70% in equity and balance in debt instruments. It invests only small component of 5% in large cap companies and predominantly invests in midcap and smallcap stocks.
  • Its top-10 equity holdings are Jindal Stainless, Minda Industries, Oil India, JK Cement, Indus Towers, Indian Bank, Astral, Hero Motocorp, Ajanta Pharma and Castrol India.
  • Its debt portfolio consists of 7.5% zero risk GOI bonds and balance in CP and low risk NCD Bonds.
  • Fund’s beta is 0.75 (<1 is better) and Alpha is 13.2 (positive alpha is good).
  • This fund has been a consistent performer that has generated 17.9% annualised returns since inception.
  • While we call this as hybrid fund (that invests in a combination of equity and debt), with its high exposure to midcap and smallcap stocks, it can be further classified as very high risk fund. Recently, SEBI has introduced stress tests for the fund houses to undertake amid growing concerns about valuations of small cap stocks where investors need to be cautious. Such funds are good for high risk investors who want to invest for a medium to long term.

Conclusion: In conclusion, these top 5 hybrid mutual funds that generated highest returns in the last 1 year has their own pros and cons. However, such funds may not suit all investors. Investors should consider their investment goals, risk appetite, investment horizon along with lock-in period in such funds before making investment decisions.

Suresh KP

10 comments

  1. R/Sir, Many experts on TV and you tube says that keep only 5 to 7 funds in your portfolio with every market cap. My question is if I am doing monthly sip of Rs 100000 and invest in 20000 in each category like large, mid, small, flexi and multicap. And if out of 5 funds 2 funds not beat to benchmark and category average after continuing sip for 10 years. In this situation I get low return. But if I selected 2 or 3 best funds that have proven performance over last 10 years and devide 20000 in 3 funds in each category then after 10 years of sip I will not get 20% but not get 12%. Chances that I get average 16%. I consider that out of 3 funds in each category 1 give good , 1 give better and 1 give low return. Is this is a good idea? Please give your valuable advice. Currently my sip of Rs 65000 is running and I want to increase amt hoto Rs 100000/- Please reply.

    1. Your question has an answer.
      For each category you can invest 2 funds
      Review performance every 6 months.
      for thematic funds / international funds – For under performing funds, go hard call and exit if required. Keep emotions away.

  2. Hi Suresh, If I am invest rs.1000 as SIP into a Index fund (I already have Nifty 50, Nifty next 50, Nifty midcap 150) in my bucket. Which one would you suggest? I am also looking to have less expense ratio as it is Index fund.

    I thought of adding one small cap Index fund(I already have Nippon Small cap direct, but comes with .8% expense ratio)

    Eagerly looking for your suggestion

    1. Hello Lakshmi Narasimhan, This depends on risk appetite
      Nifty50 index – Moderate to high risk investors
      Midcap and smallcap index – Only high risk investors

      I personally want to take risk and invest in midcap/smallcap mutual funds (active funds and not index funds). Hence it is their personal choice and risk appetite along with financial goals. There are several low cost smallcap index funds like 1) Edelweiss Nifty Smallcap 250 Index 2) Bandhan Nifty Smallcap 250 Index which have expense ration below 0.2%

      1. Thank you Suresh… I infact wanted to invest in Nippon small cap direct however they stopped new sip since last year it seems..so I am looking at other options…I am a high risk investors looking to invest for long term..but I do hear a news that small and mid cap prices are overrated and might go for correction..

        So if you still suggest an actively managed small cap fund that accepts a sip..please do so.

      2. I also want to give credits to you for doing this write up for so long ..I am one of the beneficiary of your blog..

        I am a high risk investors and below is my portfolio (monthly sip)
        I would need your expert advise to rebalance or add anything ( I can go for another 2k per month)

        Also suggest me a fund for Japan market.

        1. Motilal nifty 50-1k
        2. Motilal nifty next 50-1.5k
        3. Motilal nifty midcap 150- 2.5k
        4. Motilal Nasdaq 100-2k
        5. Edelweiss china-1k( please provide your view on China market and whether to continue to do sip on this one)
        6.Nippon small cap-1k
        7. ICICI prudential sensex 100-1k
        8.mirae large and mid cap-1k
        9. Franklin India focused equity fund-1k

        1. You can continue these funds except for funds that are focusing in China. You can check our worst performing mutual funds article where I indicated our view about funds that invests in China.

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