These 8 Aggressive Hybrid Funds beat the Nifty in 2019 with lower risk!

We analyse the performance of aggressive hybrid funds in 2019 in terms of risk and reward with various benchmarks and found eight funds that beat the Nifty with lower risk!

Picture of a ballerina balancing on two stones representative of aggressive hybrid funds that balance stocks and bonds.Eight such Aggressive Hybrid Funds beat the Nifty in 2019 with lower risk.

Published: January 4, 2020 at 11:23 am

Last Updated on

This is a performance report of aggressive hybrid funds in 2019. We study their returns and risk with different benchmarks and find eight of them outperformed the Nifty TRI in 2019 with lower risk.

First, we shall list the benchmark returns in 2019, fund returns in 2019, then the standard deviation (a measure of risk) in 2019 for both.  First, we shall sort funds that have got a higher return than the benchmarks in 2019. Then we shall sort benchmarks and funds in terms of increasing volatility. Finally, we shall spot aggressive hybrid fund with better-than-benchmark returns with lower-than-benchmark risk.

This kind of filtering for other diversified equity funds over 1,2,3,4 and five years can be done with the Equity Mutual Fund Performance Screener. Also, see the process here: Want lower risk & higher return mutual funds?

Note:  No part of this article should be treated as investment advice. This is purely informational in nature.

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Aggressive Hybrid Benchmark Returns in 2019

Note: An actively managed aggressive hybrid fund is expected to beat the CRISIL Hybrid index (65% Nifty + 35% bonds) on a risk-adjusted basis. This either means reasonable returns at lower volatility or ideally better-than-benchmark returns with lower-than-benchmark risk

  • S&P BSE SENSEX – TRI 15.66
  • NIFTY 50 – TRI 13.48
  • CRISIL Hybrid 35+65 – Aggressive Index 10.66
  • S&P BSE 200 – TRI 10.38

Aggressive Hybrid Fund Returns in 2019

Returns in green represent outperformance over the Nifty. Returns in magenta outperformance over the CRISIL Hybrid 35+65 – Aggressive Index.

  1. BNP Paribas Substantial Equity Hybrid Fund(G)-Direct Plan 17.97
  2. Motilal Oswal Equity Hybrid Fund(G)-Direct Plan 17.59
  3. Axis Equity Hybrid Fund(G)-Direct Plan 15.86
  4. DSP Equity & Bond Fund(G)-Direct Plan 15.34
  5. Kotak Equity Hybrid Fund(D)-Direct Plan 14.97
  6. LIC MF Equity Hybrid Fund(G)-Direct Plan 14.53
  7. SBI Equity Hybrid Fund(D)-Direct Plan 14.15
  8. Mirae Asset Hybrid Equity Fund(G)-Direct Plan 13.83
  9. Essel Equity Hybrid Fund(G)-Direct Plan 13.33
  10. Indiabulls Equity Hybrid Fund(G)-Direct Plan 13.32
  11. Canara Rob Equity Hybrid Fund(G)-Direct Plan 12.97
  12. Sundaram Equity Hybrid Fund(G)-Direct Plan 12.40
  13. Edelweiss Aggressive Hybrid Fund(G)-Direct Plan 12.13
  14. HSBC Equity Hybrid Fund(G)-Direct Plan 11.64
  15. PGIM India Hybrid Equity Fund(G)-Direct Plan 11.55
  16. Invesco India Equity & Bond Fund(G)-Direct Plan 11.25
  17. ICICI Pru Equity & Debt Fund(G)-Direct Plan 10.04
  18. Shriram Hybrid Equity Fund(G)-Direct Plan 9.94
  19. Franklin India Equity Hybrid Fund(G)-Direct Plan 9.09
  20. HDFC Hybrid Equity Fund(G)-Direct Plan(Adjusted) 8.23
  21. Tata Hybrid Equity Fund(G)-Direct Plan 8.08
  22. L&T Hybrid Equity Fund(G)-Direct Plan 7.55
  23. Quant Absolute Fund(G)-Direct Plan 7.29
  24. IDFC Hybrid Equity Fund(G)-Direct Plan 6.13
  25. Aditya Birla SL Equity Hybrid ’95 Fund(G)-Direct Plan 5.55
  26. Baroda Hybrid Equity Fund(G)-Direct Plan 4.44
  27. Nippon India Equity Hybrid Fund(G)-Direct Plan 3.80
  28. Principal Hybrid Equity Fund(G)-Direct Plan 3.46
  29. UTI Hybrid Equity Fund(G)-Direct Plan 3.13
  30. IDBI Hybrid Equity Fund(G)-Direct Plan 1.38
  31. BOI AXA Mid & Small Cap Equity & Debt Fund(G)-Direct Plan -3.81
  32. JM Equity Hybrid Fund(G)-Direct Plan -6.84

Risk performance of benchmarks in2019

We shall use the standard deviation to denote the risk performance. This is a measure of how much each monthly return in the last year has deviated from the average monthly return. The actual number does not mean much. A high number implies higher volatility.

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  • CRISIL Hybrid 35+65 – Aggressive Index 2.29
  • NIFTY 50 – TRI 3.42
  • S&P BSE 200 – TRI 3.54
  • S&P BSE SENSEX – TRI 3.34

Risk Performance of Aggressive Hybrid Funds in 2019

Data in red represents a higher risk than the Nifty. Note that the CRISL Hybrid fund has lower risk than the NIfty. Only Edelweiss Aggressive Hybrid Fund(G)-Direct Plan managed volatility better (lower) than the CRISIL index.

  1. BNP Paribas Substantial Equity Hybrid Fund(G)-Direct Plan 2.48
  2. Motilal Oswal Equity Hybrid Fund(G)-Direct Plan 2.80
  3. Axis Equity Hybrid Fund(G)-Direct Plan 2.51
  4. DSP Equity & Bond Fund(G)-Direct Plan 2.93
  5. Kotak Equity Hybrid Fund(D)-Direct Plan 3.15
  6. LIC MF Equity Hybrid Fund(G)-Direct Plan 2.32
  7. SBI Equity Hybrid Fund(D)-Direct Plan 2.51
  8. Mirae Asset Hybrid Equity Fund(G)-Direct Plan 2.79
  9. Essel Equity Hybrid Fund(G)-Direct Plan 2.53
  10. Indiabulls Equity Hybrid Fund(G)-Direct Plan 2.42
  11. Canara Rob Equity Hybrid Fund(G)-Direct Plan 2.55
  12. Sundaram Equity Hybrid Fund(G)-Direct Plan 2.45
  13. Edelweiss Aggressive Hybrid Fund(G)-Direct Plan 2.28
  14. HSBC Equity Hybrid Fund(G)-Direct Plan 2.54
  15. PGIM India Hybrid Equity Fund(G)-Direct Plan 2.56
  16. Invesco India Equity & Bond Fund(G)-Direct Plan 2.53
  17. ICICI Pru Equity & Debt Fund(G)-Direct Plan 3.28
  18. Shriram Hybrid Equity Fund(G)-Direct Plan 2.64
  19. Franklin India Equity Hybrid Fund(G)-Direct Plan 2.61
  20. HDFC Hybrid Equity Fund(G)-Direct Plan(Adjusted) 2.90
  21. Tata Hybrid Equity Fund(G)-Direct Plan 2.74
  22. L&T Hybrid Equity Fund(G)-Direct Plan 2.75
  23. Quant Absolute Fund(G)-Direct Plan 3.86
  24. IDFC Hybrid Equity Fund(G)-Direct Plan 2.99
  25. Aditya Birla SL Equity Hybrid ’95 Fund(G)-Direct Plan 2.74
  26. Baroda Hybrid Equity Fund(G)-Direct Plan 2.50
  27. Nippon India Equity Hybrid Fund(G)-Direct Plan 3.91
  28. Principal Hybrid Equity Fund(G)-Direct Plan 2.64
  29. UTI Hybrid Equity Fund(G)-Direct Plan 2.85
  30. IDBI Hybrid Equity Fund(G)-Direct Plan 2.50
  31. BOI AXA Mid & Small Cap Equity & Debt Fund(G)-Direct Plan 4.41
  32. JM Equity Hybrid Fund(G)-Direct Plan 3.70

Eight Aggressive Hybrid Funds beat the Nifty in 2019 with lower risk

We finally get these eight funds.

BNP Paribas Substantial Equity Hybrid Fund(G)-Direct Plan
Motilal Oswal Equity Hybrid Fund(G)-Direct Plan
Axis Equity Hybrid Fund(G)-Direct Plan
DSP Equity & Bond Fund(G)-Direct Plan
Kotak Equity Hybrid Fund(D)-Direct Plan
LIC MF Equity Hybrid Fund(G)-Direct Plan
SBI Equity Hybrid Fund(D)-Direct Plan
Mirae Asset Hybrid Equity Fund(G)-Direct Plan

This picture summarises the findings.

one year risk vs one year return of aggressive hybrid funds in 2019
one year risk vs one year return of aggressive hybrid funds in 2019

The only fund, Edelweiss Aggressive Hybrid Fund(G)-Direct Plan, to have beat the CRISIL Hybrid 35+65 – Aggressive Index in terms of risk and return is shown in red. The black rectangle represents the bounds of benchmark risk.

All points within the rectangle have volatility greater than the CRISIL Hybrid index but lower than Nifty. The eight outperformers listed above are marked in green. Notice the danger of taking on much higher than the Nifty. This is results in poor performance. Again a clear proof that higher risk does not mean higher return!

What do you think? Do you invest in any of these funds? How did your funds fare in 2019? Please share below.

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Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com

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3 Comments

  1. Sir, Can you suggest which of the top of the first five funds listed by you will remain in the first five during the coming year?
    I am an IIT, Madras alumnus.

  2. Thanks Pattu for the detailed analysis.
    Can the same be done on a 3 and 5 year basis as 1 year data has less meaning.

    Thanks!

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