Hybrid mutual funds invest in stocks, bonds, and commodities (gold and silver) based on the fund’s investment objective. The recent bull market has seen many hybrid mutual funds outperform over the past year. These hybrid funds have returned between 7% and 50% over the past year (with a big difference between the lowest and highest returns). Compared to equity funds, hybrid funds have lower risk because they do not invest in his 100% stocks.This article provides the following information 5 Hybrid Mutual Funds with Returns of 44% to 50% in the Past Year From March 12, 2023 to March 11, 2024.
Also read: 20 stock mutual funds with positive returns every year over the past 10 years
5 hybrid mutual funds with one-year returns of 44% to 50%
Below is a list of top-performing hybrid mutual funds that have returned more than 44% over the past year.
#1 – ICICI Pru Retirement Hybrid Aggressive Fund – 1 year return: 50%
#2 – JM Aggressive Hybrid Fund – 1 year return: 48.7%
#3 – Quantitative Multi-Asset Fund – 1 year return: 46.1%
#4 – ICICI Pru Childcare Gift Fund – 1 year return: 44%
No. 5 – Indian Bank Mid-Small Cap Equity and Debt Fund – 1 year return: 43.9%
Note: We considered all hybrid funds, including hybrid aggressive, hybrid conservative, hybrid balanced, hybrid equity savings, hybrid arbitrage, dynamic asset allocation, and multi-asset allocation funds.
5 Hybrid Mutual Funds with 1-Year Returns of 44% or More – Investment Objectives and Performance Details
Let’s take a closer look at these funds.
#1 – ICICI Pru Retirement Hybrid Aggressive Fund – 1 year return: 50%
Investment purpose:
An open-ended hybrid scheme that primarily invests in equity and equity-related securities to generate capital appreciation. You can also invest in debt, gold/gold ETF/REIT units in this scheme. InvIT and other asset classes permitted from time to time for income generation/wealth creation.
Performance details
Absolute return of the fund (direct plan)
- 1 year return: 50%
- 2 year return: 52.5%
- 3 year return: 78%
- 5 years return rate: 130% (1 lac should turn into 2.3 lac)
Annualized return of the fund
- 1 year return: 50%
- 2 year annualized return: 23.4%
- 3-year annualized return: 20%
- 5-year annualized return: 18.1%
Our view:
- It is a retirement hybrid fund that invests 86% in equities and the balance in debt instruments. The stock composition is 50% large-cap stocks, 12% mid-cap stocks, and the remainder small-cap stocks and other equity options.
- The company’s top 10 shareholdings are Bharti Airtel, Ultratech, Jindal Steel, Lupin, DLF, L&T, Tech Mahindra, Inox, NMDC and Maruti.
- The company’s debt portfolio consists of 5.6% GOI bonds and 3% low-risk NCD bonds.
- The fund has a beta of 0.84 (<1 is good) and an alpha of 6.22 (positive alpha is good).
- The fund has consistently returned 18% annually since its inception.
- One hidden risk factor is that there is a fixed period of five years or until retirement age, whichever is earlier.
- I’m not against retirement mutual funds, but investors need to evaluate whether they’re comfortable with a five-year lock-in period. Alternatively, you should choose other hybrid aggressive mutual funds that do not have such a lock-in period.
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#2 – JM Aggressive Hybrid Fund – 1 year return: 48.7%
Investment purpose:
The scheme aims for stable current income and long-term capital growth from a balanced portfolio of debt and equity. The scheme aims for stable current income and long-term capital growth from a balanced portfolio of debt and equity.
Performance details
Absolute return of the fund (direct plan)
- 1 year return: 49%
- 2 year return: 70%
- 3 year return: 86%
- 5 year return: 143%
- 10 years return: 315% (1 lac equals 4.15 lacs)
Annualized return of the fund
- 1 year return: 49%
- 2-year annualized return: 30%
- 3-year annualized return: 23%
- 5-year annualized return: 19%
- 10-year annualized return: 15.3%
Our view:
- This is an aggressive hybrid fund that invests 80% in stocks and 20% in bonds. The stock composition is 25% large-cap stocks, 18% mid-cap stocks, and the remainder small-cap stocks.
- The company’s top 10 shareholdings are Sobha, Infosys, Tata Motors, Voltas, REC, Bajaj Auto, ICICI Bank Hero Moto BoB and GE T&D.
- The company’s bond portfolio consists of 7% GOI bonds and 13% low-risk NCD bonds.
- The fund has a beta of 0.79 (<1 is good) and an alpha of 10.7 (positive alpha is good).
- The fund has consistently returned 15% annually since its inception.
- It is aimed at medium to high risk investors as it invests primarily in stocks and some in bond funds. Such funds can be invested by him for a holding period of five years or more.
#3 – Quantitative Multi-Asset Fund – 1 year return: 46.1%
Investment purpose:
The scheme aims to generate income and capital growth by investing in products across three asset classes. Equity, Debt, and Commodities.
Performance details
Absolute return of the fund (direct plan)
- 1 year return: 46.1%
- 2 year return: 65%
- 3 year return: 144%
- 5 year return: 255%
- 10 years return: 390% (1 lac becomes 4.9 lac)
Annualized return of the fund
- 1 year return: 46.1%
- 2-year annualized return: 28.2%
- 3-year annualized return: 34.6%
- 5-year annualized return: 28.7%
- 10-year annualized return: 17.2%
Our view:
- It is a multi-asset mutual fund (classified as a hybrid because it invests in stocks, bonds, and commodities) that invests 72% in stocks, 8% in bonds, 10% in commodities, and holds the rest in cash. The stock composition ratio is 65% large-cap stocks and the rest small- and medium-sized stocks.
- The top 10 holdings are Reliance, Jio Financials, Orchid Pharma, Adani Power, HUDC, Gale, Hindalco, Britannia, Jindal Steel and Ashok Leyland.
- The company’s bond portfolio consists of 5% zero-risk GOI bonds and 3% low-risk NCD bonds.
- As part of our commodity portfolio, we invest 10% in gold and silver ETFs through other ETF/mutual fund schemes.
- The fund has a beta of 0.7 (less than 1 is good) and an alpha of 9.3 (positive alpha is good).
- The fund has consistently returned 16% annually since its inception.
- This is a multi-asset fund that invests in equities, debt and commodities (gold/silver). Investors with medium to high risk can invest in such funds for medium to long term.
#4 – ICICI Pru Childcare Gift Fund – 1 year return: 44%
Investment purpose:
The plan creates a portfolio that invests in stocks and equity-related securities (65-100%), as well as debt and money market instruments, securitized debt and cash (including call funds) (0-35%). By doing so, we aim to generate capital growth. .
Performance details
Absolute return of the fund (direct plan)
- 1 year return: 44%
- 2 year return: 48.6%
- 3 year return: 68%
- 5 year return: 110%
- 10 years return: 345% (1 lac equals 4.45 lacs)
Annualized return of the fund
- 1 year return: 44%
- 2-year annualized return: 21.9%
- 3-year annualized return: 18.9%
- 5-year annualized return: 16%
- 10-year annualized return: 16%
Our view:
- This is a subsidiary mutual fund scheme that invests over 80% in equities and the balance in debt instruments. The stock composition ratio is 49% large-cap stocks, the remainder mid-cap stocks, and small-cap stocks and other stock options.
- The company’s top 10 shareholdings are Bharti Airtel, Ultratech, Lupin, Inopx Winds, DLF, JSW Steel, HUL, ICICI Bank, NMDC and Ambuja Cement.
- The company’s debt portfolio consists of 7% GOI bonds, 7% low-risk NCD bonds and smaller constituent assets.
- The fund has a beta of 0.81 (<1 is good) and an alpha of 5.77 (positive alpha is good).
- The fund has consistently returned 14.7% annually since its inception.
- One hidden risk factor is that, like retirement funds, there is a five-year lock-in period. This means that you cannot sell your mutual fund within five years.
- As I pointed out earlier, I’m not against solution-based mutual funds like this (retirement funds or children’s mutual funds), but investors should evaluate whether they are comfortable with a five-year lock-in period. is needed. Alternatively, you should choose other hybrid aggressive mutual funds that do not have such lock-in periods and invest in similar investment strategies.
Also read: 10 mutual funds with the worst performance over the past year
No. 5 – Indian Bank Mid-Small Cap Equity and Debt Fund – 1 year return: 43.9%
Investment purpose:
The purpose of this plan is to provide investors with capital appreciation and profit distribution from a portfolio consisting of small and mid-cap stocks, equity-related securities and bonds.
Performance details
Absolute return of the fund (direct plan)
- 1 year return: 43.9%
- 2 year return: 50%
- 3 year return rate: 95%
- Return in 5 years: 167% (1 lac becomes 2.67 lac)
Annualized return of the fund
- 1 year return: 43.9%
- 2-year annualized return: 22.4%
- 3-year annualized return: 24.8%
- 5-year annualized return: 21.7%
Our view:
- It is an aggressive hybrid fund that invests 70% in equities and the balance in debt instruments. Only 5% is invested in large-cap stocks, with the majority invested in mid-cap and small-cap stocks.
- The company’s top 10 shareholdings are Jindal Stainless, Minda Industries, Oil India, JK Cement, Indus Towers, Indian Bank, Astral, Hero Motocorp, Ajanta Pharma and Castrol India.
- The company’s debt portfolio consists of 7.5% zero-risk GOI bonds and the balance CP and low-risk NCD bonds.
- The fund has a beta of 0.75 (<1 is good) and an alpha of 13.2 (positive alpha is good).
- The fund has consistently returned 17.9% annually since its inception.
- We call it a hybrid fund (invests in a combination of equity and debt), but it can be further classified as a very high-risk fund due to its high exposure to mid- and small-cap stocks. Amid growing concerns over small-cap valuations that investors need to be cautious about, SEBI recently introduced stress tests to be conducted by fund houses. Such funds are suitable for high-risk investors who wish to invest for the medium to long term.
Conclusion: In conclusion, these top five hybrid mutual funds with the highest returns over the past year each have their own pros and cons. However, such funds are not suitable for all investors. Investors should consider their investment objectives, risk appetite, investment horizon and lock-in period for such funds before deciding to invest.