7 aggressive hybrid funds delivered 12%+ 5-year SIP returns; Bank of India led with 16.5%

Aggressive hybrid funds are often considered a middle ground for investors who want equity exposure but do not want to take the full risk of an equity-only fund. But the experience has been far from uniform across schemes. Over the past five years, SIP returns in the category have ranged from 5.99% to 16.50%, based on the data for 29 funds.

Only seven aggressive hybrid funds delivered 12% or more through SIPs over the five-year period. Bank of India Aggressive Hybrid Fund led the pack at 16.50%, while Bandhan, JM, Navi, HSBC, ICICI Prudential and Edelweiss also crossed the 12% mark.

Interestingly, being one of the biggest funds in the category did not necessarily translate into higher five-year SIP returns. ICICI Prudential Aggressive Hybrid Fund, the largest scheme in the list with ₹52,454 crore in assets, delivered 12.26%. But HDFC Aggressive Hybrid Fund, with ₹22,297 crore, returned just 5.99% over the same period.

Which aggressive hybrid funds led on five-year SIP returns?

Bank of India Aggressive Hybrid Fund topped the list with a 16.50% five-year SIP return. Bandhan Aggressive Hybrid Fund followed at 12.81%.

JM Aggressive Hybrid Fund and Navi Aggressive Hybrid Fund both delivered 12.36%, while HSBC Aggressive Hybrid Fund recorded 12.29%. ICICI Prudential Aggressive Hybrid Fund and Edelweiss Aggressive Hybrid Fund completed the list, with returns of 12.26% and 12.11%, respectively.

The gap between the top and bottom of this seven-fund group is notable. Bank of India’s 16.50% SIP return was 4.39 percentage points higher than Edelweiss’s 12.11%.

How did the largest aggressive hybrid funds perform?

Looking at the largest schemes by AUM gives a different picture. ICICI Prudential Aggressive Hybrid Fund was the largest fund in the category, with ₹52,454 crore, and delivered a 12.26% five-year SIP return.

HDFC Aggressive Hybrid Fund was the second-largest, with ₹22,297 crore in assets. Its five-year SIP return was 5.99%.

DSP Aggressive Hybrid Fund, with ₹11,759 crore, delivered 8.60%, while Canara Robeco Aggressive Hybrid Fund, with ₹11,396 crore, returned 9.21%.

Mirae Asset Aggressive Hybrid Fund had ₹9,596 crore in assets and delivered 9.99%, while Kotak Aggressive Hybrid Fund, with ₹9,335 crore, returned 11.52%.

Among these seven largest schemes, only ICICI Prudential crossed the 12% mark. The other six delivered between 5.99% and 11.52%.

The data therefore shows a considerable variation in historical performance within the aggressive hybrid category. A large AUM does not by itself indicate a higher five-year SIP return, while a smaller fund’s historical performance should also not be interpreted as evidence that it will continue to outperform.

Investors should also remember that SIP returns reflect investments made periodically over five years and are influenced by market levels at the time of each investment. They are not the same as a lump-sum return and should not be treated as an indication of guaranteed future returns.

For investors evaluating aggressive hybrid funds, the five-year SIP return can be one starting point, but it should be considered alongside the fund’s asset allocation, portfolio composition, costs and performance across different market cycles.