Do Aggressive Hybrid Mutual Funds carry high risk?

Aggressive Hybrid Mutual Funds carry moderate to high risk due to their equity-heavy allocation (65–80%). While they are less volatile than pure equity funds, their exposure to equities and select debt instruments means they can still fluctuate with market conditions. This is suitable for investors with a medium- to high-risk appetite.

Are aggressive funds riskier than equity funds?

As compared to pure equity funds, aggressive funds are less risky. While they invest heavily in equities, they also include a debt component (20–35%) that cushions market volatility. This balance offers a relatively stable risk-return profile, though still higher than conservative or balanced hybrid funds.

What is the difference between aggressive hybrid and equity savings funds?

Aggressive hybrid funds invest 65–80% in equity, while equity savings funds use a mix of equity, arbitrage, and debt to reduce volatility. Equity savings aim for lower risk and more stable returns, whereas aggressive hybrid funds seek growth, accepting higher market risk in the process.

How do you know if a mutual fund is aggressive?

You can identify an aggressive mutual fund by its high equity allocation, typically 65% or more. It may include mid- or small-cap stocks and shows greater market sensitivity. Fund documents, fact sheets, or classification under SEBI guidelines clearly indicate if a fund falls into the aggressive category.

What are the types of Aggressive Mutual Funds?

Aggressive Mutual Funds come in two main types: Aggressive Growth Funds, which prioritise high-return equity investments and suit investors with a higher risk appetite; and Aggressive Hybrid Funds, which maintain a 65–80% equity allocation balanced with debt to manage volatility and drive long-term growth. However, it must be noted that this is a bifurcation based on investment style and not particularly a SEBI designated mutual fund category.

Aggressive Hybrid Mutual Funds

Aggressive Hybrid Mutual Funds combine equity and debt in a single portfolio, with a greater emphasis on equities to tap into growth potential. The debt portion adds stability by helping to cushion market volatility.

Let’s explore how an Aggressive Hybrid Mutual Fund works, who it suits best, and how it compares with other hybrid strategies so you can make informed investment choices.

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List of Aggressive Hybrid Mutual Funds

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Search Result - 30 Mutual Funds

Fund Name	Fund Size (Cr.)	3Y Returns	5Y Returns	Invest Now
Bank of India Mid & Small Cap Equity & Debt Fund-Dir Growth Hybrid Aggressive Hybrid Fund	1,841	18.85%	16.00%	Invest
Bandhan Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	2,410	16.09%	12.84%	Invest
ICICI Pru Equity & Debt Fund - Direct Growth Hybrid Aggressive Hybrid Fund	52,433	15.41%	16.38%	Invest
Edelweiss Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	3,907	15.22%	14.94%	Invest
JM Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	704	15.18%	14.86%	Invest
HSBC Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	5,691	14.76%	11.96%	Invest
Quant Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	2,175	14.72%	13.90%	Invest
Kotak Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	9,205	14.64%	13.69%	Invest
Mahindra Manulife Aggressive Hybrid Fund-Dir Growth Hybrid Aggressive Hybrid Fund	2,634	13.81%	13.35%	Invest
SBI Equity Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	88,036	13.73%	11.41%	Invest

Fund Name	1Y Returns	Rating	Fund Size (Cr.)
Bank of India Mid & Small Cap Equity & Debt Fund-Dir Growth Hybrid Aggressive Hybrid Fund	16.44% Fund Size (Cr.) - 1,841 Invest
Bandhan Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	12.36% Fund Size (Cr.) - 2,410 Invest
ICICI Pru Equity & Debt Fund - Direct Growth Hybrid Aggressive Hybrid Fund	6.51% Fund Size (Cr.) - 52,433 Invest
Edelweiss Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	7.25% Fund Size (Cr.) - 3,907 Invest
JM Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	5.66% Fund Size (Cr.) - 704 Invest
HSBC Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	9.83% Fund Size (Cr.) - 5,691 Invest
Quant Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	14.75% Fund Size (Cr.) - 2,175 Invest
Kotak Aggressive Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	8.41% Fund Size (Cr.) - 9,205 Invest
Mahindra Manulife Aggressive Hybrid Fund-Dir Growth Hybrid Aggressive Hybrid Fund	3.51% Fund Size (Cr.) - 2,634 Invest
SBI Equity Hybrid Fund - Direct Growth Hybrid Aggressive Hybrid Fund	8.64% Fund Size (Cr.) - 88,036 Invest

What are Aggressive Hybrid Funds?

Aggressive Hybrid Mutual Funds refer to hybrid schemes that invest 65%–80% in equities and 20%–35% in debt instruments, as per SEBI guidelines. Aggressive Hybrid Funds have an equity-heavy allocation, aiming for higher returns by taking on more market risk. With a relatively smaller debt component, these funds lean toward growth rather than income stability. They are suitable for investors with a higher risk tolerance who seek long-term capital appreciation and are comfortable with short-term market fluctuations. This type of fund bridges the gap between pure equity funds and more conservative hybrid options.

How do Aggressive Hybrid Mutual Funds Work?

It is important to understand how Aggressive Hybrid Mutual Funds work as it will help you decide whether they are the right option for you or not. These funds invest primarily in equities and the rest in debt, aiming to balance capital growth with controlled risk. These funds offer fund managers more flexibility than balanced funds, allowing them to respond dynamically to market conditions.

1. Equities offer capital growth, and managers may follow growth or value strategies.
2. Debt instruments add stability and manage short-term volatility.
3. Periodic rebalancing ensures the fund stays within the required equity-debt ratio.
4. Arbitrage opportunities may be used to generate low-risk gains in volatile markets.

Characteristics of Aggressive Hybrid Funds

1. Equity-Dominant Allocation: An Aggressive Hybrid Mutual Fund invests 65%–80% in equities, giving it strong growth potential while still maintaining some debt exposure.
2. Moderate Risk Profile: The risk level is higher than debt funds but lower than pure equity funds, making it a balanced choice for many investors.
3. Goal-Based Suitability: An Aggressive Fund is ideal for medium- to long-term goals like buying a house or funding education.
4. Risk Linked to Underlying Assets: Actual risk depends on debt quality, interest rate sensitivity, and exposure to mid- or small-cap stocks.

Who Should Invest in Aggressive Hybrid Mutual Funds?

1. Moderate Risk Takers: Investors who are comfortable with some market volatility but not ready for the full risk of pure equity funds may find this category suitable.
2. First-Time Equity Investors: Those new to market-linked products can use aggressive funds to invest in equities gradually, with added stability from debt.
3. Long-Term Goal Planners: Ideal for individuals saving for goals like home ownership or children’s education, where a mix of growth and balance is needed.
4. Investors Seeking Auto-Rebalancing: Aggressive hybrid mutual funds offer built-in portfolio rebalancing to maintain consistent asset allocation over time.

What are the Advantages of Investing in Aggressive Hybrid Mutual Funds?

1. Balanced Growth and Risk: Aggressive funds benefit by combining equity’s growth potential with debt’s stability to manage risk effectively.
2. Capital Appreciation: The equity portion aims for long-term wealth creation.
3. Risk Cushioning: Debt investments help soften market volatility.
4. Automatic Rebalancing: Another aggressive fund benefit is that they maintain the right equity-debt mix without needing constant monitoring.

How to Invest in Aggressive Hybrid Funds?

1. Define Your Goal: Start by setting clear financial goals for medium- to long-term growth.
2. Choose the Right Fund: Select from the best aggressive funds to invest in based on your risk appetite and objectives.
3. Complete Quick KYC: Enjoy a seamless and fast KYC process on the 5paisa platform.
4. Pick Your Platform: Use the 5paisa app to search the mutual fund you want to invest with a few simple clicks.
5. Decide on SIP or Lump Sum: Opt for convenient SIPs for disciplined investing or lump sum to deploy capital immediately.

Track all your mutual fund investments in one place with real-time updates on 5paisa.

Factors to Consider While Investing in Aggressive Mutual Funds

1. Understand Your Risk Appetite: Aggressive Hybrid Mutual Funds suit investors comfortable with moderate-to-high risk and market swings, make sure the fund you choose to invest in aligns with this.
2. Match Fund Objective with Your Goals: Ensure the fund’s strategy aligns with long-term goals like wealth creation or retirement planning.
3. Evaluate Asset Mix & Allocation: Check if the equity (65–80%) and debt (20–35%) allocation fits your comfort level.
4. Compare Fund Performance & Costs: Review past returns, fund manager experience, and expense ratios across aggressive funds to invest in.

Tax Rules For Aggressive Mutual Funds

Since Aggressive Hybrid Mutual Funds invest more than 65% in equities, they are taxed like equity funds:

1. Short-Term Capital Gains (STCG): If units are sold within 12 months, gains are taxed at 20%.
2. Long-Term Capital Gains (LTCG): Gains above ₹1.25 lakh in a financial year are taxed at 12.5% without indexation, if held for more than 12 months.
3. Exemption Limit: LTCG up to ₹1.25 lakh per year is exempt from tax.

Risks Involved When Investing in Aggressive Hybrid Funds

1. Market Risk: Aggressive Hybrid Mutual Funds are exposed to market cycles. Sudden downturns can impact returns, especially in equity-heavy phases.
2. Equity Volatility: With 65–80% equity exposure, aggressive funds may include mid- and small-cap stocks, which may lead to higher short-term volatility.
3. Debt-Related Risk: While these funds hold debt instruments, poor-quality bonds can expose investors to credit or default risk.
4. Interest Rate Sensitivity: Returns from the debt portion are vulnerable to changes in economic interest rates, impacting fund stability.
5. Fund Manager & Cost Risk: The fund manager’s choices in asset allocation and stock selection affect outcomes. Also, a high expense ratio can reduce overall gains.

Popular Aggressive Hybrid Mutual Funds

Fund Name
Min Investment Amt
AUM (Cr)
3Y Returns

Bank of India Mid & Small Cap Equity & Debt Fund-Dir Growth

₹ 1000

₹ 1,841

18.85%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 1,841

3Y Returns

18.85%

Aggressive Hybrid Mutual Funds

List of Aggressive Hybrid Mutual Funds

Category

Sub Category

Rating

What are Aggressive Hybrid Funds?

How do Aggressive Hybrid Mutual Funds Work?

Characteristics of Aggressive Hybrid Funds

Who Should Invest in Aggressive Hybrid Mutual Funds?

What are the Advantages of Investing in Aggressive Hybrid Mutual Funds?

How to Invest in Aggressive Hybrid Funds?

Factors to Consider While Investing in Aggressive Mutual Funds

Tax Rules For Aggressive Mutual Funds

Risks Involved When Investing in Aggressive Hybrid Funds

Popular Aggressive Hybrid Mutual Funds

Bank of India Mid & Small Cap Equity & Debt Fund-Dir Growth

₹ 1000

₹ 1,841

18.85%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 1,841

3Y Returns

18.85%

Bandhan Aggressive Hybrid Fund - Direct Growth

₹ 100

₹ 2,410

16.09%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 2,410

3Y Returns

16.09%

ICICI Pru Equity & Debt Fund - Direct Growth

₹ 100

₹ 52,433

15.41%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 52,433

3Y Returns

15.41%

Edelweiss Aggressive Hybrid Fund - Direct Growth

₹ 100

₹ 3,907

15.22%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 3,907

3Y Returns

15.22%

JM Aggressive Hybrid Fund - Direct Growth

₹ 500

₹ 704

15.18%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 704

3Y Returns

15.18%

HSBC Aggressive Hybrid Fund - Direct Growth

₹ 1000

₹ 5,691

14.76%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 5,691

3Y Returns

14.76%

Quant Aggressive Hybrid Fund - Direct Growth

₹ 1000

₹ 2,175

14.72%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 2,175

3Y Returns

14.72%

Kotak Aggressive Hybrid Fund - Direct Growth

₹ 100

₹ 9,205

14.64%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 9,205

3Y Returns

14.64%

Mahindra Manulife Aggressive Hybrid Fund-Dir Growth

₹ 500

₹ 2,634

13.81%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 2,634

3Y Returns

13.81%

SBI Equity Hybrid Fund - Direct Growth

₹ 500

₹ 88,036

13.73%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 88,036

3Y Returns

13.73%

Other Calculators

Frequently Asked Questions

Open Free Demat Account

Aggressive Hybrid Mutual Funds

List of Aggressive Hybrid Mutual Funds

Category

Sub Category

Rating

What are Aggressive Hybrid Funds?

How do Aggressive Hybrid Mutual Funds Work?

Characteristics of Aggressive Hybrid Funds

Who Should Invest in Aggressive Hybrid Mutual Funds?

What are the Advantages of Investing in Aggressive Hybrid Mutual Funds?

How to Invest in Aggressive Hybrid Funds?

Factors to Consider While Investing in Aggressive Mutual Funds

Tax Rules For Aggressive Mutual Funds

Risks Involved When Investing in Aggressive Hybrid Funds

Popular Aggressive Hybrid Mutual Funds

Bank of India Mid & Small Cap Equity & Debt Fund-Dir Growth ₹ 1000 ₹ 1,841 18.85% Min SIP Investment Amt ₹ 1000 AUM (Cr.) ₹ 1,841 3Y Returns 18.85%

Bandhan Aggressive Hybrid Fund - Direct Growth ₹ 100 ₹ 2,410 16.09% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 2,410 3Y Returns 16.09%

ICICI Pru Equity & Debt Fund - Direct Growth ₹ 100 ₹ 52,433 15.41% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 52,433 3Y Returns 15.41%

Edelweiss Aggressive Hybrid Fund - Direct Growth ₹ 100 ₹ 3,907 15.22% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 3,907 3Y Returns 15.22%

JM Aggressive Hybrid Fund - Direct Growth ₹ 500 ₹ 704 15.18% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 704 3Y Returns 15.18%

HSBC Aggressive Hybrid Fund - Direct Growth ₹ 1000 ₹ 5,691 14.76% Min SIP Investment Amt ₹ 1000 AUM (Cr.) ₹ 5,691 3Y Returns 14.76%

Quant Aggressive Hybrid Fund - Direct Growth ₹ 1000 ₹ 2,175 14.72% Min SIP Investment Amt ₹ 1000 AUM (Cr.) ₹ 2,175 3Y Returns 14.72%

Kotak Aggressive Hybrid Fund - Direct Growth ₹ 100 ₹ 9,205 14.64% Min SIP Investment Amt ₹ 100 AUM (Cr.) ₹ 9,205 3Y Returns 14.64%

Mahindra Manulife Aggressive Hybrid Fund-Dir Growth ₹ 500 ₹ 2,634 13.81% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 2,634 3Y Returns 13.81%

SBI Equity Hybrid Fund - Direct Growth ₹ 500 ₹ 88,036 13.73% Min SIP Investment Amt ₹ 500 AUM (Cr.) ₹ 88,036 3Y Returns 13.73%

Other Calculators

Frequently Asked Questions

Open Free Demat Account

Bank of India Mid & Small Cap Equity & Debt Fund-Dir Growth

₹ 1000

₹ 1,841

18.85%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 1,841

3Y Returns

18.85%

Bandhan Aggressive Hybrid Fund - Direct Growth

₹ 100

₹ 2,410

16.09%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 2,410

3Y Returns

16.09%

ICICI Pru Equity & Debt Fund - Direct Growth

₹ 100

₹ 52,433

15.41%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 52,433

3Y Returns

15.41%

Edelweiss Aggressive Hybrid Fund - Direct Growth

₹ 100

₹ 3,907

15.22%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 3,907

3Y Returns

15.22%

JM Aggressive Hybrid Fund - Direct Growth

₹ 500

₹ 704

15.18%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 704

3Y Returns

15.18%

HSBC Aggressive Hybrid Fund - Direct Growth

₹ 1000

₹ 5,691

14.76%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 5,691

3Y Returns

14.76%

Quant Aggressive Hybrid Fund - Direct Growth

₹ 1000

₹ 2,175

14.72%

Min SIP Investment Amt

₹ 1000

AUM (Cr.)

₹ 2,175

3Y Returns

14.72%

Kotak Aggressive Hybrid Fund - Direct Growth

₹ 100

₹ 9,205

14.64%

Min SIP Investment Amt

₹ 100

AUM (Cr.)

₹ 9,205

3Y Returns

14.64%

Mahindra Manulife Aggressive Hybrid Fund-Dir Growth

₹ 500

₹ 2,634

13.81%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 2,634

3Y Returns

13.81%

SBI Equity Hybrid Fund - Direct Growth

₹ 500

₹ 88,036

13.73%

Min SIP Investment Amt

₹ 500

AUM (Cr.)

₹ 88,036

3Y Returns

13.73%