Hybrid mutual funds also termed as balanced funds invests in equity and debt and allocates investment portion based on the investment objective of the fund. While equity can provide growth, debt component can provide stable returns in medium to long term. Currently there are over 190 hybrid mutual funds in India. Which is the Top Hybrid Fund generated highest SIP returns in last 5 years?
Also Read: List of High Return Mutual Fund Schemes
How we filtered this mutual fund scheme?
We considered all hybrid mutual fund schemes. This includes, aggressive hybrid funds, balanced funds and conservative hybrid funds.
Filtered fund that generated highest SIP returns in the last 5 years among direct mutual funds.
Quant Absolute Fund stands out 1st in the list after applying these filters.
This fund generated highest SIP returns of 27% in the last 5 years while next 5 Hybrid funds generated 16.5% to 20.4% SIP returns during a similar period.
About Quant Absolute Fund
The investment objective of the fund is to generate income/capital appreciation by investing primarily in equity and equity related instruments with a moderate exposure to debt securities & money market instruments.
One can invest a minimum of Rs 5,000 in lump sum or Rs 1,000 per month through SIP for 6 months.
There is no entry load and exit load.
This fund is benchmarked with CRISIL Hybrid Aggressive Index.
This fund allocates 65% to 80% in equity and related instruments, 20% to 35% in debt and money market instruments, Upto 10% in REITs and InvITs.
Since this is a aggressive hybrid fund, this is categorized as very high risk fund.
Current AUM is Rs 762 Crores.
Its current expense ratio is 0.56%.
Where does this mutual fund invest now?
While this fund invests majorly in equity, here are the portfolio details.
Currently it has invested 77.5% in equity, 17% in debt and balance holds in cash.
This fund majorly invests in sectors of consumer staples, financial, energy, materials, services, insurance and construction.
Its concentration is on 27 companies now. Its top holdings are ITC, Ambuja Cements, Adani Ports, Reliance, NTPC, SBI, Kotak Bank, Bharti Airtel etc.,
How is the performance of the fund?
Let us check the performance of SIP, lump sum and rolling returns.
A) SIP Performance
This fund generated 27% SIP returns in last 5 years and 35% SIP returns in last 3 years.
This fund is able to generate 7% to 10% higher SIP returns in last 5 years compared to other Hybrid mutual fund schemes. Even in the last 3 years, this fund generated 7% to 14% higher SIP returns compared to its peers.
Investment of Rs 10,000 SIP per month, the investment value would have been Rs 6 Lacs (10,000 x 60 months) and the investment value would have now grown to Rs 11.9 Lacs in 5 years.
B) Annualised Performance
7 year annualized returns – 18%
5 year annualized returns – 20% (investment of 1 lac would have turned 2.5 lacs)
3 year annualized returns – 31%
1 year returns – 13%
C) Rolling Returns
From a 3 year rolling return perspective, this fund generated:
Over 12% returns – 65% of the times
1% to 12% returns – 34% of the times
Negative returns – 1% of the times
From a 5 year rolling return perspective, this fund generated:
Over 12% returns – 60% of the times
1% to 12% returns – 40% of the times
Negative returns – Zero times
This fund generated 18% annualised returns since inception of the mutual fund scheme.
Who can invest in this Hybrid fund?
Our recent articles was on large cap mutual fund and flexicap mutual fund that generated high SIP returns in the last 5 years and both are from Quant mutual fund. Coincidentally, even in Hybrid category too, the Quant mutual fund scheme came top fund that generated highest SIP returns in last 5 years.
Mutual funds can perform better in medium to long term. This mutual fund scheme is from Hybrid category and is very high risk as it invests aggressively in equity and low amount in debt. Hybrid segment can outperform in medium term.
If you are a high risk investor and want to invest for a medium term of 5 years and above, you can invest in such funds. Alternatively, you can invest 2/3rd of the portion in largecap mutual funds and balance in a simple FD or ultra short term debt funds.
Have you liked our tips and analysis? Then share it on your Facebook, Twitter, Telegram and other social media, which might be useful to your friends too.
- LIC Jeevan Utsav Plan No 871 – Features, Benefits and Review - December 2, 2023
- 10% Arka Fincap NCD Dec-2023 issue – Should you Invest? - December 1, 2023
- 10.5% IIFL Samasta NCD Dec-2023 issue details - November 30, 2023