When markets move through multiple cycles, hybrid mutual funds often stand out by offering a balanced mix of equity growth and debt stability. Over the last 5 years, several hybrid and multi-asset funds have delivered 20%+ CAGR, showcasing strong fund management, asset allocation strategy, and resilience during volatile phases. In this article, we analyse 8 High Return Hybrid Mutual Funds that generated impressive 5-year returns and continue to be strong contenders for long-term wealth creation.
Investors can also explore other popular articles we wrote earlier 12 High Return Mutual Funds with Over 30% CAGR in last 5 years.
How We Identified These 8 High Return Hybrid Mutual Funds?
We considered below filters while short listing these funds.
1) Considered All Hybrid-Oriented Mutual Funds
We considered data across hybrid categories, including:
- Aggressive Hybrid Funds
- Balanced Advantage Funds
- Multi Asset Funds
- Equity & Debt Allocation Funds
- Hybrid Retirement Solutions
2) Focused Only on Direct Plans
Direct plans carry lower expense ratios and offer comparatively higher long-term returns. Hence, only direct plan NAVs were used for performance evaluation.
3) Applied a Strict 5-Year Performance Filter
All shortlisted funds delivered 20%+ CAGR over the last 5 years, based on NAV data availability.
4) Final Selection of 8 High Return Hybrid Mutual Funds
The result is a curated list of 8 consistently strong hybrid funds that have beaten their category averages and demonstrated robust asset allocation discipline.
List of 8 High Return Hybrid Mutual Funds with Over 20% CAGR in the Last 5 Years
The table below provides a snapshot of these schemes along with their 5-year CAGR and wealth creation potential.
| Fund Name | 5-Year CAGR (%) | 5-Year Absolute Return | ₹1 Lakh Would Have Turned Into |
|---|---|---|---|
| SBI Magnum Children’s Benefit Fund – Investment Plan | 33.2 | 319.3% | ₹4,19,296 |
| Quant Multi Asset Allocation Fund | 27.2 | 233.0% | ₹3,32,993 |
| ICICI Prudential Equity & Debt Fund | 23.4 | 186.1% | ₹2,86,138 |
| ICICI Prudential Multi Asset Fund | 23.3 | 185.0% | ₹2,84,981 |
| HDFC Balanced Advantage Fund | 21.3 | 162.6% | ₹2,62,606 |
| Bank of India Mid & Small Cap Equity & Debt Fund | 21.2 | 161.5% | ₹2,61,525 |
| Quant Aggressive Hybrid Fund | 20.7 | 156.2% | ₹2,56,175 |
| ICICI Prudential Retirement Fund – Hybrid Aggressive Plan | 20.2 | 150.9% | ₹2,50,913 |
Deep Dive into 8 High Return Hybrid Mutual Funds
Below is a detailed breakdown of each fund including its objective, performance, highlights, reasons to invest, and risk factors.
1) SBI Magnum Children’s Benefit Fund – Investment Plan
Investment Objective: Long-term capital appreciation primarily for child education planning through hybrid asset allocation.
Performance Summary
- 3-Year CAGR: 24.0%
- 5-Year CAGR: 33.2%
- 10-Year CAGR: Not applicable
Highlights
- Invests predominantly in midcap, smallcap, and thematic opportunities.
- Strong multi-year performance due to high-growth equity exposure.
Why to Invest
- Suitable for long-term goals such as children’s education.
- High equity allocation provides strong upside potential.
Risk Factors
- Short-term volatility due to heavy exposure to mid and small caps.
We analysed this fund earlier at 6 Steady Income Mutual Funds with 5 Star Rating from Value Research to Invest in 2025.
2) Quant Multi Asset Allocation Fund
Investment Objective: Generate long-term returns by diversifying across equity, debt, and commodities.
Performance Summary
- 3-Year CAGR: 21.4%
- 5-Year CAGR: 27.2%
- 10-Year CAGR: 18.7%
Highlights
- Highly dynamic asset allocation using the Quant-driven VLRT framework.
- Consistently generates strong risk-adjusted returns.
Why to Invest
- Suitable for investors seeking diversification across multiple asset classes.
- Known for rapid tactical shifts and alpha generation.
Risk Factors
- High churn may lead to volatile short-term performance.
3) ICICI Prudential Equity & Debt Fund
Investment Objective: Generate balanced returns through a mix of equity, debt, and arbitrage.
Performance Summary
- 3-Year CAGR: 19.3%
- 5-Year CAGR: 23.4%
- 10-Year CAGR: 17.2%
Highlights
- One of the most consistent aggressive hybrid funds.
- Uses dynamic allocation between large caps, midcaps, and debt.
Why to Invest
- Suitable for medium to long-term wealth creation.
- Offers better stability than pure equity funds.
Risk Factors
- May underperform pure equity funds during strong bull markets.
This fund is the top performer in last 10 years and 15 years as analysed at 10 Hybrid Mutual Funds That Outperformed with 290% to 420% Absolute Returns in 10 Years.
4) ICICI Prudential Multi Asset Fund
Investment Objective: Deliver long-term wealth by investing across equity, debt, and commodities.
Performance Summary
- 3-Year CAGR: 19.7%
- 5-Year CAGR: 23.3%
- 10-Year CAGR: 17.1%
Highlights
- Uses gold and commodity exposure for downside protection.
- Long-term consistent performer.
Why to Invest
- Balanced portfolio for moderate-risk investors.
- Good hedge during volatile markets.
Risk Factors
- Commodity cycles may impact short-term returns.
5) HDFC Balanced Advantage Fund
Investment Objective: Generate long-term capital appreciation using dynamic equity–debt allocation.
Performance Summary
- 3-Year CAGR: 18.1%
- 5-Year CAGR: 21.3%
- 10-Year CAGR: 15.3%
Highlights
- Uses proprietary valuation model for equity allocation.
- One of India’s largest hybrid schemes.
Why to Invest
- Ideal for conservative to moderate investors.
- Maintains balance during market downturns.
Risk Factors
- May lag behind aggressive hybrid funds during sharp rallies.
This is one among the 5 Best Balanced Mutual Funds to Invest in 2025 Based on Rolling Returns
6) Bank of India Mid & Small Cap Equity & Debt Fund
Investment Objective: Generate wealth through mid & small cap equities along with debt stability.
Performance Summary
- 3-Year CAGR: 18.4%
- 5-Year CAGR: 21.2%
- 10-Year CAGR: Not applicable
Highlights
- New but strong performer due to small and midcap rally.
- Provides exposure to fast-growing companies.
Why to Invest
- Suitable for aggressive investors.
- Higher upside potential due to equity composition.
Risk Factors
- Higher volatility in market corrections.
7) Quant Aggressive Hybrid Fund
Investment Objective: Generate long-term returns through aggressive equity allocation with tactical debt exposure.
Performance Summary
- 3-Year CAGR: 12.2%
- 5-Year CAGR: 20.7%
- 10-Year CAGR: 16.7%
Highlights
- Known for bold tactical calls.
- Unique quant framework drives allocations.
Why to Invest
- Good for investors seeking high-growth hybrid exposure.
- Can outperform peers during volatile phases.
Risk Factors
- Higher drawdowns during sudden market corrections.
This fund is top performer which we analysed at 10 Hybrid Mutual Funds That Outperformed with 428% to 754% Absolute Returns in 15 Years.
8) ICICI Prudential Retirement Fund – Hybrid Aggressive Plan
Investment Objective: Designed for long-term retirement planning through equity-heavy allocation.
Performance Summary
- 3-Year CAGR: 21.3%
- 5-Year CAGR: 20.2%
- 10-Year CAGR: Not applicable
Highlights
- Lock-in structure encourages long-term disciplined investing.
- Strong performance due to well-balanced portfolio.
Why to Invest
- Suitable for long-term retirement corpus creation.
- Provides stability with equity upside.
Risk Factors
- Limited liquidity due to mandatory lock-in.
Conclusion
These 8 high-return hybrid mutual funds have delivered impressive 20%+ CAGR over the past 5 years. While the returns are attractive, investors must choose funds based on:
- Risk appetite
- Investment horizon
- Financial goals
- Need for diversification
Hybrid and multi-asset funds can provide an excellent balance between growth and stability, making them ideal for both new and experienced investors.
If you are constructing a hybrid portfolio for 2025 or in 2026, these funds offer a strong foundation for long-term wealth creation.
