Synopsis: Aggressive hybrid mutual funds invest in a combination of both equity and debt instruments, and are not as volatile but have a potential for growth. The article lists the top 5 aggressive hybrid mutual funds, based on 3-year annualised returns in 2026
Aggressive hybrid funds have both equity and debt instruments in their portfolio. They are looking to realize capital gains over a period of time, while minimizing volatility in the portfolio by investing in debt securities. The equity exposure of aggressive hybrid funds varies from 65% to 80%. This makes such funds good for investors who want equity growth and don’t want too much volatility in their investment as compared to equity funds.
What Are Aggressive Hybrid Funds?
Aggressive hybrid mutual fund schemes are those in which the mutual fund portfolio consists of both equity and debt instruments. The main aim is to achieve long-term capital appreciation along with reducing portfolio risk through debt investments. Key features include:
- Higher equity allocation (typically 65%–80%)
- Debt exposure for stability and risk management
- Suitable for moderate-risk investors
- Better diversification compared to pure equity funds
- Lower volatility than equity-only funds, but higher than conservative hybrid funds
Top 5 Aggressive Hybrid Mutual Funds Based on 3-Year Annualised Returns
1. Bank of India Mid & Small Cap Equity & Debt Fund
- NAV: ₹46.06
- AUM: ₹1,554.32 Cr
- Expense Ratio: 0.87%
- Exit Load: 1% (within 3 months)
- Performance Snapshot
- 3-Year CAGR: 20.3%
- 3-Year Absolute Return: 76.9%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 20.3%
- Hybrid Aggressive Category Average: 14.3%
- Outperformance: +6 percentage points
2. ICICI Prudential Equity & Debt Fund
- NAV: ₹454.85
- AUM: ₹50,032.71 Cr
- Expense Ratio: 1.05%
- Exit Load: 1% (within 12 months)
- Performance Snapshot
- 3-Year CAGR: 16.7%
- 3-Year Absolute Return: 61.7%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 16.7%
- Hybrid Aggressive Category Average: 14.3%
- Outperformance: +2.4 percentage points
3. Quant Aggressive Hybrid Fund
- NAV: ₹523.19
- AUM: ₹2,127.82 Cr
- Expense Ratio: 1.36%
- Exit Load: 1% (within 15 days)
- Performance Snapshot
- 3-Year CAGR: 16.1%
- 3-Year Absolute Return: 59.3%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 16.1%
- Hybrid Aggressive Category Average: 14.3%
- Outperformance: +1.8 percentage points
Also read: 6 Best Overnight Mutual Funds for SIP Investments in 2026: Franklin India, Bajaj Finserv & More
4. JM Aggressive Hybrid Fund
- NAV: ₹135.96
- AUM: ₹691.85 Cr
- Expense Ratio: 1.09%
- Exit Load: 1% (within 60 days)
- Performance Snapshot
- 3-Year CAGR: 15.8%
- 3-Year Absolute Return: 57.8%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 15.8%
- Hybrid Aggressive Category Average: 14.3%
- Outperformance: +1.5 percentage points
5. Bandhan Aggressive Hybrid Fund
- NAV: ₹31.54
- AUM: ₹2,021.45 Cr
- Expense Ratio: 0.91%
- Exit Load: Exit load of 1% if units in excess of 10% are redeemed or switched-out within 12 months
- Performance Snapshot
- 3-Year CAGR: 15.6%
- 3-Year Absolute Return: 57.0%
- Category Comparison (3-Year)
- Fund 3-Year CAGR: 15.6%
- Hybrid Aggressive Category Average: 14.3%
- Outperformance: +1.3 percentage points
Head to Head Comparison
Note: NAV, AUM, expense ratio and exit load data are sourced from Groww. Data as of 3rd July 2026.
Key Takeaways
- The Bank of India Mid & Small Cap Equity & Debt Fund gave the best 3-year CAGR at 20.3%, which outperformed compared to the category average.
- ICICI Prudential Equity & Debt Fund is the biggest fund in terms of AUM, which is greater than ₹50,000 crore.
- Quant Aggressive Hybrid Fund has the highest expense ratio among the funds mentioned above, and hence comparison of the cost of investment can be beneficial for the investors.
- Outperformance from all the funds is constant when compared to the category average of 14.3%.
- Aggressive hybrid funds strike a balance between equity and debt investments.
Who Should Invest?
Aggressive hybrid funds would be the right choice for those investors who want to earn long-term capital gains while minimizing the risks of volatility by including debts in their portfolio. Aggressive hybrid funds will suit investors who have a moderate risk tolerance level, but at the same time, they are comfortable with equity and want less volatility than purely equity funds.
Disclaimer: The information provided in this article is for educational purposes only and should not be construed as financial advice or investment recommendation. Returns mentioned are based on historical performance and may not be sustained in the future. Mutual fund investments are subject to market risks, including potential loss of capital. Investors are advised to assess their risk appetite and financial goals and to consult a certified financial advisor before investing.
