Best Aggressive Hybrid Funds to invest in 2022

Top 5 Best Aggressive Hybrid Funds to invest in 2022Investors are worried about investing in equity as they are high risk. On other hand debt mutual funds or fixed income options provide low returns. What about investing in a single scheme that combines both these options? Here comes hybrid mutual funds. These funds would invest in equity and debt components. If you get into more deeper into hybrid fund categories, aggressive hybrid mutual funds invests  more in equity and low in debt. These are less riskier compared to pure equity funds, however aimed to generate high returns. What are aggressive hybrid mutual funds? How does they work exactly? Which are the Best Aggressive Hybrid Funds to invest in 2022 in India?

Also Read: Best Large and Midcap Mutual Funds for 2022

What are Aggressive Hybrid Funds?

Balanced mutual funds or Hybrid funds invests in stocks and fixed income options. There are different categories in hybrid funds like aggressive hybrid funds, balanced funds, conservative hybrid funds, arbitrage funds and dynamic asset allocation funds.

Aggressive Hybrid Mutual Funds are balanced funds that invest majorly in stocks and some portfolio in fixed income options. This way these funds are less riskier compared to pure equity funds, however can generate high returns.

How does Aggressive Hybrid Funds work?

Let me explain with an example.

X aggressive hybrid fund scheme invests 75% in equity and 25% in fixed income options. Assume that equity component generates 12% returns and fixed income provides 7% returns. Then the returns from these aggressive hybrid funds would be 10.75% (75% of 12% (Equity)+ 25% generates 7% (Debt)).

Advantages in Aggressive Hybrid Funds

These funds invests up to 75% in stocks.  Equity is the only option that can beat inflation in medium to long term.

It invests up to 25% in debt / fixed income options which can have cushion even if stocks go down.

The risk in such funds is lower compared to pure equity fund.

These funds are good for moderate to high risk investors who would like to invest for 5+ years.

How we filtered Aggressive Hybrid Funds for investment?

Here is the selection criteria used.

1) Considered the list of all aggressive hybrid funds in India. There are 47 funds which falls in this criteria.

2) Filtered funds that generated highest annualized returns of over 10% in the last 5 years. We could get 15 funds after this filter.

3) Filtered funds that have generated consistent rolling returns in the last 3 years and 5 years. We could get 8 mutual funds after this filter.

4) Funds that has AUM over Rs 100 Crores only are considered. Again we could get 8 mutual funds after applying this criteria

5) We picked 5 funds from these 8 funds that generated lowest negative returns.

Best Aggressive Hybrid Funds to invest in 2022

Here is the list of Top 5 Aggressive Hybrid Funds to invest in India.

#1 – Quant Absolute Fund

#2 – Mirae Asset Hybrid Equity Fund

#2 – Canara Robeco Equity Hybrid Fund

#3 – Kotak Equity Hybrid Fund

#4 – SBI Equity Hybrid Fund

Top 5 Aggressive Hybrid Funds in 2022 – Performance and Risk Metrics

Let us get into more info about where these funds invests, performance and other metrics.

#1 – Quant Absolute Fund

The investment strategy of this scheme is to provide long term capital appreciation and current income with a mix of fixed income securities and equity instruments.

Currently this fund invests 80% in equity, 18% in debt and balance holds in cash. It invests in stocks that are majorly from financial services, energy sector, services sector, consumable stapes, communication, materials and communication.

Fund Performance and Risk Metrics

Performance & Risk Metrics Quant Absolute Fund
Value Research Rating 5 Star
3 Years – SIP Returns 31%
5 Years – SIP Returns 24%
5 Years – Annualised Returns 18%
AUM –  Crores 437
Expense Ratio 0.56%
Risk Grade Avg
Return Grade High
Beta 0.84
Alpha 13.64

How did it performed in terms of Rolling Returns?

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 56% of the times
  • 1% to 12% returns – 43% of the times
  • Negative returns – 1% of the times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 100% of the times
  • 1% to 12% returns – Zero times
  • Negative returns – Zero times

This fund generated 17% annualized returns since inception. With lowest expense ratio of 0.56%, this is one of the Best Aggressive Hybrid Funds to invest in 2022.

#2 – Mirae Asset Hybrid Equity Fund

The investment strategy of this scheme is to generate capital appreciation along with current income from a combined portfolio of equity & equity related instruments and debt and money market instruments.

Currently this fund invests 74% in equity, 22% in debt and balance holds in cash. It invests in stocks that are majorly from financial services, technology, energy, automobile, healthcare and consumable stapes.

Fund Performance and Risk Metrics

Performance & Risk Metrics Mirae Asset Hybrid Equity Fund
Value Research Rating 4 Star
3 Years – SIP Returns 14%
5 Years – SIP Returns 13%
5 Years – Annualised Returns 12%
AUM –  Crores 6,396
Expense Ratio 0.42%
Risk Grade Below Avg
Return Grade Above Avg
Beta 0.87
Alpha 2.00

How did it performed in terms of Rolling Returns?

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 59% of the times
  • 1% to 12% returns – 41% of the times
  • Negative returns – Zero times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 96% of the times
  • 1% to 12% returns – 4% of the times
  • Negative returns – Zero times

This fund generated 13% annualized returns since inception. With lowest expense ratio of 0.42%, this is one of the Top Aggressive Hybrid Funds to invest in 2022.

#3 – Canara Robeco Equity Hybrid Fund

The investment strategy of the scheme seeks to build a balanced portfolio, which would provide a combination of high annual return and capital appreciation.

Currently this fund invests 72% in equity, 21% in debt and balance holds in cash. It invests in stocks that are majorly from financial services, technology, energy, automobile, healthcare, capital goods and consumable stapes.

Fund Performance and Risk Metrics

Performance & Risk Metrics Canara Robeco Equity Hybrid Fund
Value Research Rating 5 Star
3 Years – SIP Returns 13%
5 Years – SIP Returns 13%
5 Years – Annualised Returns 12%
AUM –  Crores 7,429
Expense Ratio 0.60%
Risk Grade Low
Return Grade Above Avg
Beta 0.78
Alpha 3.36

How did it performed in terms of Rolling Returns?

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 63% of the times
  • 1% to 12% returns – 37% of the times
  • Negative returns – Zero times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 95% of the times
  • 1% to 12% returns – 5% of the times
  • Negative returns – Zero times

This fund generated 14% annualized returns since inception. With lowest expense ratio of 0.6%, this is one of the Best Aggressive Hybrid Mutual Funds to invest in 2022.

#4 – Kotak Equity Hybrid Fund

The investment strategy of this fund is to achieve growth by investing in equity and equity related instruments, balanced with income generation by investing in debt and money market instruments.

Currently this fund invests 73% in equity, 22% in debt and balance holds in cash. It invests in stocks that are majorly from financial services, technology, materials, energy, capital goods, healthcare and automobiles.

Fund Performance and Risk Metrics

Performance & Risk Metrics Kotak Equity Hybrid Fund
Value Research Rating 4 Star
3 Years – SIP Returns 18%
5 Years – SIP Returns 15%
5 Years – Annualised Returns 12%
AUM –  Crores 2,539
Expense Ratio 0.66%
Risk Grade Avg
Return Grade Above Avg
Beta 0.97
Alpha 4.52

How did it performed in terms of Rolling Returns?

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 49% of the times
  • 1% to 12% returns – 45% of the times
  • Negative returns – 6% of the times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 92% of the times
  • 1% to 12% returns – 8% of the times
  • Negative returns – Zero times

This fund generated 13% annualized returns since inception. With lowest expense ratio of 0.66%, this is one of the Best Aggressive Hybrid Fund to invest in 2022.

#5 – SBI Equity Hybrid Fund

The investment strategy of this fund aims to provide investors long-term capital appreciation along with the liquidity of an open-ended scheme by investing in a mix of debt and equity. The scheme will invest in a diversified portfolio of equities of high growth companies and balance the risk through investing the rest in fixed income securities.

Currently this fund invests 70% in equity, 20% in debt and balance holds in cash. It invests in stocks that are majorly from financial services, healthcare, energy, services, metals, automobile and chemicals.

Fund Performance and Risk Metrics

Performance & Risk Metrics SBI Equity Hybrid Fund
Value Research Rating 4 Star
3 Years – SIP Returns 13%
5 Years – SIP Returns 12%
5 Years – Annualised Returns 11%
AUM –  Crores 48,908
Expense Ratio 0.84%
Risk Grade Low
Return Grade Above Avg
Beta 0.94
Alpha 1.90

How did it performed in terms of Rolling Returns?

From a 3 year rolling return perspective, this fund generated:

  • Over 12% returns – 55% of the times
  • 1% to 12% returns – 45% of the times
  • Negative returns – Zero times

From a 5 year rolling return perspective this fund generated:

  • Over 12% returns – 92% of the times
  • 1% to 12% returns – 8% of the times
  • Negative returns – Zero times

This fund generated 15% annualized returns since inception. With lowest expense ratio of 0.84%, this is one of the Best Aggressive Hybrid Fund to invest in 2022.

Top 5 Hybrid Aggressive Funds – Annualised Performance

Mutual Fund Name 1 Yr 3 Yrs 5 Yrs
Quant Absolute Fund 10% 26% 18%
Mirae Asset Hybrid Equity Fund 2% 13% 12%
Canara Robeco Equity Hybrid Fund 2% 14% 12%
Kotak Equity Hybrid Fund 5% 16% 12%
SBI Equity Hybrid Fund 4% 13% 11%

*Returns for more than year are annualized

You may like: Mutual Funds with Highest SIP returns in last 10 years

Who should invest in Aggressive Hybrid Funds?

Investors who fall in moderate to high risk category and willing to invest for 3-5 years can invest in this scheme.

When should I invest in aggressive hybrid funds?

Investors can invest in mutual funds through SIP in a disciplined manner to generate high returns in medium to long term. However, when there are stock market corrections in index for say 10%-15%, one can invest in lumpsum too.

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Suresh KP

7 comments

  • AYYAR VISWANATHAN RAMESH

    Sir
    Best Aggressive Hybrid Funds to invest in 2022 is very good analysis. please suggest whether investing Rs 160000/- in Quant absolute fund and withdrawing Rs1000/ per month through SWP mode is good. I am planning for 7 years Horizon

  • Saurabh

    Hello Sir

    Big fan of yours.

    I’m currently SIP investing as below per month. Funds selected from your earlier research reports so far:

    (1) PARAG PARIKH FLEXI CAP FUND – GROWTH — 5,000
    (2) SBI SMALL CAP FUND REGULAR GROWTH — 2,000
    (3) UTI NIFTY NEXT 50 INDEX FUND REGULAR GROWTH PLAN — 1,500
    (4) UTI-NIFTY INDEX FUND – GROWTH PLAN — 1,500

    I can invest further 5,000 more each month. Shall I go ahead with your suggested “Quant Absolute Fund” now ?

    I do not need money immediately and have investment horizon of 3 to 5 years.

    Please review my portfolio sir.

    Please also suggest if there are some other funds I can go with if there is overlapping of any kind with this portfolio.

    Thanks sir.

    Saurabh

    • Hello Saurabh, Your portfolio is good which contains N50, NN50, smallcap and flexicap. You can add one midcap fund too to completely balanced portfolio. Yes, you can invest in the fund indicated by you, however you need to hold for atleast 5 years.

      • Saurabh

        Thank you Sir.

        As per your suggestion to include a midcap fund, I’ve added “PGIM India Midcap Opportunities Fund”. And also added hybrid fund: QUANT ABSOLUTE FUND.

        Now, my entire portfolio is as below. Thank you for your guidance. I’m so grateful to you.

        (1) PGIM INDIA MIDCAP OPPORTUNITIES FUND –> 4,500
        (2) QUANT ABSOLUTE FUND –> 3,500
        (3) PARAG PARIKH FLEXI CAP FUND –> 5,000
        (4) UTI NIFTY NEXT 50 INDEX FUND –> 1,500
        (5) UTI-NIFTY INDEX FUND –> 1,500
        (6) SBI SMALL CAP FUND –> 2,000

        Total = 18,000 SIP per month.
        Investment horizon = Up to 5 years

        Saurabh

  • Anushka Sharma

    Such a amazing information regarding – Best Aggressive Hybrid Funds to invest in 2022 in India , That’s very helpful for us ! Thank you ..

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