Last Updated on October 29, 2019 at 7:17 am
The performance of aggressive hybrid funds (previously known as balanced funds) over the past year is compared with diversified equity funds like large cap, large and midcap and multi-cap funds. We also report the latest portfolio summary of aggressive hybrid (agg -hy) funds.
Let us begin with the portfolio summary starting from the lowest-rated bonds. The credit rating profile of agg-hy funds is often ignored. The NAV fluctuations due to the large stock exposure drown out the NAV movement due to credit rating changes and interest rate movements.
It is important for investors to study and understand the credit rating profile of the agg-hy category and avoid risky debt if they wish to. That said, the exposure to risky debt will typically be small and manageable in established funds with a healthy AUM.
Since agg-hy funds are anyway recommended only for long-term goals as a replacement for diversified equity funds, especially large cap, this credit rating risk is acceptably small.
🔥Secure your future with our Robo-advisory tool trusted by over 3,500 investors and advisors. From effortless retirement planning to funding your children’s biggest dreams, turn your financial goals into reality. 🔥
Subscribe for money management solutions via email! (Link takes you to our email sign-up form) Join 32,000+ readers in our community.
👉 New Tool Alert! NaviPlan: A Privacy-Focused Multi-asset Tracker and Goal Planner 👈
These articles explain the benefits of this category.
- Why Aggressive Hybrid (balanced) Mutual Funds score over diversified funds
- Balanced Advantage vs Aggressive Hybrid Funds: When to use what
- 11 aggressive hybrid (balanced) mutual funds that have beat Nifty 100!!
Portfolio summary of aggressive hybrid (agg-hy) funds
Agg-Hy Funds with BBB / BBB+ / BBB- rated bond exposure (%) (Sep 2019)
| Nippon India Equity Hybrid Fund | 11.51 |
| Baroda Hybrid Equity Fund | 0.89 |
| UTI Hybrid Equity Fund | 0.46 |
| Sundaram Equity Hybrid Fund | 0.45 |
| SBI Equity Hybrid Fund | 0.03 |
Agg-Hy Funds with AA / AA+ / AA- rated bond exposure (%) (Sep 2019)
| Franklin India Equity Hybrid Fund | 21.87(!!) |
| ICICI Pru Equity & Debt Fund | 16.45 |
| Baroda Hybrid Equity Fund | 10.43 |
| UTI Hybrid Equity Fund | 10.06 |
| Sundaram Equity Hybrid Fund | 9.96 |
| IDBI Hybrid Equity Fund | 8.99 |
| Tata Hybrid Equity Fund | 7.08 |
| Aditya Birla SL Equity Hybrid ’95 Fund | 6.96 |
| SBI Equity Hybrid Fund | 5.93 |
| DSP Equity & Bond Fund | 5.57 |
| LIC MF Equity Hybrid Fund | 5.47 |
| BNP Paribas Substantial Equity Hybrid Fund | 5.33 |
| L&T Hybrid Equity Fund | 3.08 |
| Principal Hybrid Equity Fund | 2.25 |
| Axis Equity Hybrid Fund | 2.16 |
| Nippon India Equity Hybrid Fund | 2.04 |
| HDFC Hybrid Equity Fund(Adjusted) | 1.93 |
| BOI AXA Mid & Small Cap Equity & Debt Fund | 1.66 |
| Kotak Equity Hybrid Fund | 1.4 |
| Mirae Asset Hybrid Equity Fund | 0.99 |
| IDFC Hybrid Equity Fund | 0.08 |
Agg-Hy Funds with the highest (top 10) cash and cash equivalent holdings(%) (Sep 2019)
| Edelweiss Aggressive Hybrid Fund | 30.91 |
| Mahindra Hybrid Equity Nivesh Yojana | 23.63 |
| Canara Rob Equity Hybrid Fund | 12.52 |
| PGIM India Hybrid Equity Fund | 9.13 |
| Shriram Hybrid Equity Fund | 9.02 |
| Mirae Asset Hybrid Equity Fund | 8.90 |
| BNP Paribas Substantial Equity Hybrid Fund | 7.56 |
| Nippon India Equity Hybrid Fund | 6.31 |
| Indiabulls Equity Hybrid Fund | 6.15 |
| UTI Hybrid Equity Fund | 5.86 |
Agg-hy funds with the highest (top 10) equity exposure(%) (Sep 2019)
| JM Equity Hybrid Fund | 86.52 |
| PGIM India Hybrid Equity Fund | 86.39 |
| Aditya Birla SL Equity Hybrid ’95 Fund | 80.80 |
| Motilal Oswal Equity Hybrid Fund | 80.62 |
| Kotak Equity Hybrid Fund | 79.83 |
| BOI AXA Mid & Small Cap Equity & Debt Fund | 79.64 |
| Tata Hybrid Equity Fund | 77.85 |
| BNP Paribas Substantial Equity Hybrid Fund | 76.37 |
| HSBC Equity Hybrid Fund | 76.21 |
| Baroda Hybrid Equity Fund | 75.90 |
Agg-hy funds with the highest (top 10) Gilt (Sov) holdings (%) (Sep 2019)
| Quant Absolute Fund | 24.95 |
| Motilal Oswal Equity Hybrid Fund | 13.59 |
| Mirae Asset Hybrid Equity Fund | 12.22 |
| HDFC Hybrid Equity Fund(Adjusted) | 8.54 |
| BOI AXA Mid & Small Cap Equity & Debt Fund | 8.40 |
| IDFC Hybrid Equity Fund | 8.14 |
| DSP Equity & Bond Fund | 7.93 |
| LIC MF Equity Hybrid Fund | 7.40 |
| Tata Hybrid Equity Fund | 6.57 |
| UTI Hybrid Equity Fund | 5.87 |
Agg-hy funds with only Sov holding (plus cash) for the debt component (%) Sep 2019
- Quant Absolute Fund
Agg-hy funds with only cash/cash equivalent holding for the debt component (%) Sep 2019
- Edelweiss Aggressive Hybrid Fund
FD is treated as a “cash equivalent”.
Agg-hy funds with only A1,A1+,A1-,AAA and Sov holdings (plus cash) for the debt component (%) (Sep 2019)
| Quant Absolute Fund |
| Motilal Oswal Equity Hybrid Fund |
| Mahindra Hybrid Equity Nivesh Yojana |
| Indiabulls Equity Hybrid Fund |
| Canara Rob Equity Hybrid Fund |
| Shriram Hybrid Equity Fund |
| HSBC Equity Hybrid Fund |
| PGIM India Hybrid Equity Fund |
| JM Equity Hybrid Fund |
| Essel Equity Hybrid Fund |
| Invesco India Equity & Bond Fund |
| Edelweiss Aggressive Hybrid Fund |
Performance analysis of aggressive hybrid funds
Agg-hy vs benchmarks
Over the last one year (as on 25th Oct 2019), the standard category benchmark, CRISIL Hybrid 35+65 – Aggressive Index returned 13.3%. The following 14 funds (out of 31) fared better.
The Nifty 50 returned 14.94%. The top 11 funds in this list outperformed the Nifty (the last three which did not is marked red). The S& P BSE 200 returned 11.6%.
| BNP Paribas Substantial Equity Hybrid Fund(G)-Direct Plan | 22.73 |
| Motilal Oswal Equity Hybrid Fund(G)-Direct Plan | 22.35 |
| DSP Equity & Bond Fund(G)-Direct Plan | 21.69 |
| Axis Equity Hybrid Fund(G)-Direct Plan | 20.67 |
| LIC MF Equity Hybrid Fund(G)-Direct Plan | 17.97 |
| SBI Equity Hybrid Fund(D)-Direct Plan | 17.83 |
| Kotak Equity Hybrid Fund(D)-Direct Plan | 17.03 |
| Canara Rob Equity Hybrid Fund(G)-Direct Plan | 16.75 |
| Invesco India Equity & Bond Fund(G)-Direct Plan | 15.72 |
| Sundaram Equity Hybrid Fund(G)-Direct Plan | 15.41 |
| Essel Equity Hybrid Fund(G)-Direct Plan | 15.02 |
| Quant Absolute Fund(G)-Direct Plan | 14.58 |
| Mirae Asset Hybrid Equity Fund(G)-Direct Plan | 14.15 |
| Shriram Hybrid Equity Fund(G)-Direct Plan | 13.72 |
Agg-hy vs Large and Mid cap funds
The median return of the large and mid cap category is 14.1%. This means about half the funds in this category (11/23) have a better return than the median. These are the funds. Ten out of 31 Agg-hy funds have a return above the large and mid cap median.
| Sundaram Large and Mid Cap Fund(G)-Direct Plan | 19.9 |
| Tata Large & Mid Cap Fund(G)-Direct Plan | 19.8 |
| Mirae Asset Emerging Bluechip(G)-Direct Plan | 18.1 |
| Kotak Equity Opp Fund(G)-Direct Plan | 17.9 |
| DSP Equity Opportunities Fund(G)-Direct Plan | 17.8 |
| Invesco India Growth Opp Fund(G)-Direct Plan | 17.8 |
| Axis Growth Opp Fund(G)-Direct Plan | 17.6 |
| Edelweiss Large & Mid Cap Fund(G)-Direct Plan | 16.9 |
| LIC MF Large & Midcap Fund-(G)-Direct Plan | 16.9 |
| Essel Large & Midcap Fund(G)-Direct Plan | 16.8 |
| BOI AXA Large & Mid Cap Equity Fund(G)-Direct Plan | 15.1 |
Agg-hy vs Multicap funds
There are 34 funds in the multicap category. Out of which, these 19 funds did better than the category median of 13.7%. This median is a bit lower than the large and mid cap category and 14/31 agg-hy funds have fared better than this number.
| Axis Multicap Fund(G)-Direct Plan | 26.43 |
| DSP Equity Fund(D)-Direct Plan | 25.26 |
| JM Multicap Fund(G)-Direct Plan | 24.64 |
| Canara Rob Equity Diver Fund(G)-Direct Plan | 18.76 |
| Essel Multi-Cap Fund(G)-Direct Plan | 18.32 |
| LIC MF Multi-Cap Fund(G)-Direct Plan | 18.15 |
| Kotak Standard Multicap Fund(G)-Direct Plan | 18.12 |
| SBI Magnum Multicap Fund(G)-Direct Plan | 17.59 |
| Mahindra MF Badhat Yojana(G)-Direct Plan | 17.07 |
| PGIM India Diversified Equity Fund(G)-Direct Plan | 16.82 |
| Motilal Oswal Multicap 35 Fund(G)-Direct Plan | 16.69 |
| BNP Paribas Multi Cap Fund(G)-Direct Plan | 16.20 |
| Tata Multicap Fund(G)-Direct Plan | 15.76 |
| Edelweiss Multi-Cap Fund(G)-Direct Plan | 15.23 |
| IDBI Diversified Equity Fund(G)-Direct Plan | 14.29 |
| Parag Parikh Long Term Equity Fund(G)-Direct Plan | 13.93 |
| Union Multi-Cap Fund(G)-Direct Plan | 13.83 |
| Baroda Multi-Cap Fund(G)-Direct Plan | 13.53 |
| UTI Equity Fund(D)-Direct Plan | 13.52 |
Agg-hy vs Large cap funds
There are 32 funds here and these 16/32 have a greater return than the median of 15.7%. Only 9 of the 31 agg-hy funds have done better than the median.
| Axis Bluechip Fund(G)-Direct Plan | 26.94 |
| BNP Paribas Large Cap Fund(G)-Direct Plan | 24.14 |
| LIC MF Large Cap Fund(G)-Direct Plan | 21.61 |
| Canara Rob Bluechip Equity Fund(G)-Direct Plan | 21.39 |
| IDBI India Top 100 Equity Fund(G)-Direct Plan | 20.78 |
| DSP Top 100 Equity Fund(G)-Direct Plan | 19.80 |
| Sahara Growth Fund(G)-Direct Plan | 18.00 |
| Kotak Bluechip Fund(D)-Direct Plan | 17.89 |
| L&T India Large Cap Fund(G)-Direct Plan | 17.85 |
| Indiabulls Blue Chip Fund(G)-Direct Plan | 17.65 |
| SBI BlueChip Fund(G)-Direct Plan | 17.18 |
| Tata Large Cap Fund(G)-Direct Plan | 16.81 |
| HSBC Large Cap Equity Fund(G)-Direct Plan | 16.59 |
| Baroda Large Cap Fund(G)-Direct Plan | 16.34 |
| Edelweiss Large Cap Fund(G)-Direct Plan | 16.12 |
| Essel Large Cap Equity Fund(G)-Direct Plan | 15.92 |
Summary
The effect of Sensex and Nifty deviating from other indices due to the performance of a handful of stocks is seen in the performance of agg-hy funds too in the last year. While they have done reasonably well against benchmarks and multi-cap funds, they have failed to shine against large cap and large and midcap funds.
This is not surprising and agg-hy funds should not fret over this. When the market normalises, agg-hy fund performance is likely to pick up. Their long-term record is impressive – Why Aggressive Hybrid (balanced) Mutual Funds score over diversified funds – and there is no reason to doubt them on the basis of this short duration.
Join 32,000+ readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email! (Link takes you to our email sign-up form)
Use our Robo-advisory Tool to create a complete financial plan! More than 3,000 investors and advisors use this! Use the discount code robo25 for 20% off. Plan your retirement (early, normal, before, and after), plus non-recurring financial goals (such as child education) and recurring financial goals (such as holidays and appliance purchases). The tool helps anyone aged 18 to 80 plan for retirement, plus six non-recurring and four recurring financial goals, with a detailed cash flow summary.
🔥Join our community of 9000+ users! 🔥Avail massive discounts on our courses + freefincal investor circle!
Track your mutual funds and stock investments with our Google Sheet!
We also publish monthly equity mutual funds, debt and hybrid mutual funds, index funds, ETF screeners, as well as momentum and low-volatility stock screeners.
You can follow our articles on Google News
We have over 1,000 videos on YouTube!
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth!
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel
- Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
- Have a question? Subscribe to our newsletter using the form below.
- Hit 'reply' to any email from us! We do not offer personalised investment advice. We can write a detailed article without mentioning your name if you have a generic question.
About The Author
Dr M. Pattabiraman (PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over 14 years of experience publishing news analysis, research and financial product development.
Connect with him via Twitter(X) LinkedIn YouTube
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,500 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter the market conditions! Watch the first lecture for free! One-time payment! No recurring fees! Lifelong access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Increase your income by getting people to pay for your skills! More than 900 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner seeking more clients through online visibility, or a salaried individual looking for side or passive income, we will show you how to do it by showcasing your skills and building a community that trusts and pays you. (Watch the 1st lecture for free). One-time payment! No recurring fees! Lifelong access to videos!
Our book for kids: “Chinchu Gets a Superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting a side income via content writing. It is available at a 50% discount for Rs. 500 only!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & its content policy
Freefincal is a News Media organisation dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact Information: To get in touch, please use our contact form. (Sponsored posts or paid collaborations will not be entertained.)Connect with us on social media
Our publications
You Can Be Rich Too with Goal-Based Investing
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
Your Ultimate Guide to Travel
