Aggressive Hybrid Mutual Funds in 2025: Meaning, Taxation & Benefits
Aggressive Hybrid Mutual Funds are a type of mutual fund that invests in both equities and debt, but with more weight on equities. As per SEBI regulations, these funds must keep 65–80% of their portfolio in equities and the remaining 20–35% in debt instruments like bonds or government securities. This mix helps the fund capture the growth potential of equities, while debt adds some balance. Here we will be discussing their features, types, and risks, which can help you evaluate whether these funds align with your financial strategy.
Top Aggressive Hybrid Mutual Funds
Here is the list of the top aggressive hybrid funds sorted based on their 5-year CAGR.
| Name | Sub Category | Plan | AUM | CAGR 3Y | Expense Ratio | NAV | Exit Load | CAGR 5Y | Volatility |
|---|---|---|---|---|---|---|---|---|---|
| ICICI Pru Equity & Debt Fund | Aggressive Hybrid Fund | Growth | 45168.02 | 21.21 | 0.96 | 441.39 | 1 | 26.53 | 9.54 |
| Bank of India Mid & Small Cap Equity & Debt Fund | Aggressive Hybrid Fund | Growth | 1252.81 | 20.38 | 0.67 | 40.84 | 1 | 23.44 | 17.05 |
| Quant Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 1977.55 | 14.05 | 0.76 | 463 | 1 | 22.95 | 12.35 |
| JM Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 804.37 | 22.7 | 0.66 | 136.12 | 1 | 22.79 | 12.23 |
| Edelweiss Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 3044.72 | 19.96 | 0.38 | 72.96 | 1 | 21.93 | 10.37 |
| Mahindra Manulife Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 1811.08 | 19.43 | 0.47 | 30.15 | 1 | 21.91 | 10.35 |
| Kotak Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 7853.42 | 17.49 | 0.47 | 73.55 | 1 | 20.84 | 11.77 |
| UTI Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 6301.59 | 17.64 | 1.24 | 428.17 | 1 | 20.53 | 9.91 |
| Nippon India Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 3894.45 | 17.47 | 1.11 | 117.98 | 1 | 20.28 | 10.56 |
| Bandhan Aggressive Hybrid Fund | Aggressive Hybrid Fund | Growth | 1139.28 | 17.29 | 0.85 | 29.38 | 1 | 19.23 | 12.56 |
Disclaimer: Please note that the above list of high-return hybrid funds is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Mutual Fund Screener and is subject to real-time updates.
Note: The data on the list of the best aggressive hybrid mutual funds is from 30th September, 2025. This data is derived from the Tickertape Mutual Funds Screener.
- 5Y CAGR: Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of the Best Aggressive Hybrid Mutual Funds
ICICI Pru Equity & Debt Fund
Launched in 2000, ICICI Pru Equity & Debt Fund invests in both stocks and bonds. It aims to give investors long-term growth through stocks while keeping some stability with bonds.
Bank of India Mid & Small Cap Equity & Debt Fund
Started in 2009, this fund invests in smaller companies (mid and small caps) and bonds. It aims for high returns by investing in growing companies, while bonds add some stability.
Quant Aggressive Hybrid Fund
Launched in 2011, Quant Aggressive Hybrid Fund invests mostly in stocks, with a smaller portion in bonds. The fund focuses on high growth through stocks and aims to give high returns.
JM Aggressive Hybrid Fund
Started in 2003, JM Aggressive Hybrid Fund invests mainly in stocks and some bonds. It aims to provide high returns by investing in stocks while using bonds for some stability.
Edelweiss Aggressive Hybrid Fund
Launched in 2007, Edelweiss Aggressive Hybrid Fund focuses on growth by investing in stocks, with some exposure to bonds for stability. The fund aims to give long-term returns while balancing risk with the bond portion.
Mahindra Manulife Aggressive Hybrid Fund
Started in 2018, Mahindra Manulife Aggressive Hybrid Fund invests in both stocks and bonds. It aims for higher returns through stocks and uses bonds to reduce some risk, making it suitable for investors looking for both growth and stability.
Kotak Aggressive Hybrid Fund
Launched in 2004, Kotak Aggressive Hybrid Fund invests in a mix of stocks and bonds. It focuses on providing long-term growth through stocks while offering some safety with its bond investments.
UTI Aggressive Hybrid Fund
Started in 2003, UTI Aggressive Hybrid Fund mainly invests in stocks with some bonds for stability. It aims to provide higher returns through its equity investments.
Nippon India Aggressive Hybrid Fund
Launched in 2004, Nippon India Aggressive Hybrid Fund invests mostly in stocks with some bonds. It focuses on growth through stocks and aims to provide long-term capital appreciation while reducing risk through its bond allocation.
Bandhan Aggressive Hybrid Fund
Started in 2018, Bandhan Aggressive Hybrid Fund invests in both stocks and bonds. It aims to provide higher returns through stocks and reduce risk with bonds.
What are Aggressive Hybrid Funds?
Aggressive hybrid funds are mutual funds that invest in both stocks and bonds, with a stronger focus on stocks. These funds are designed to give higher returns by investing 65% to 80% in equities (stocks) and the rest in debt. This mix of equity and debt makes them a good choice for investors who want to take on some risk for potentially higher returns.
How Do Aggressive Funds Work?
Aggressive funds combine both stocks (equity) and bonds (debt) to offer the potential for growth while also providing some stability. These funds follow SEBI guidelines, with at least 20% of the investment in debt-like instruments, which are more stable, similar to fixed deposits (FDs).
Taxation of Aggressive Hybrid Mutual Funds
Below is a breakdown of the tax treatment for hybrid mutual funds based on the latest regulations:
| Type of Fund | Short-Term Capital Gains (STCG) | Long-Term Capital Gains (LTCG) | Indexation Benefit |
| Equity-Oriented Hybrid Funds (more than 65% in equity) | 20% for holdings less than 1 year | 12.5% for holdings over 1 year, with gains up to ₹1.25 lakh tax-free | Not available |
| Debt-Oriented Hybrid Funds (less than 65% in equity) | Taxed as per income tax slab for holdings less than 3 years | 12.5% for holdings over 3 years | Not available |
How to Invest in Aggressive Hybrid Mutual Funds?
You can easily start to invest in the top aggressive hybrid funds by following these steps:
- To invest in the aggressive hybrid mutual funds, you can visit an equity investment platform such as smallcase
- The next step is to research and identify the best aggressive hybrid mutual fund that matches your investment thesis. Tools like the Tickertape Mutual Fund Screener can help you filter and compare funds based on parameters such as returns, expense ratio, and fund size.
- Once you shortlist the funds, visit smallcase, log in, and search for the fund by name. You can then choose the investment mode, either a one-time lump sum or a 5-year SIP plan, and complete the process.
Features of Aggressive Funds
- High Equity Exposure: These funds focus heavily on stocks and equity-linked instruments, aiming for higher returns.
- Growth-Oriented Portfolio: The fund primarily targets sectors and companies with strong growth potential.
- Market Volatility: Since they are equity-focused, these funds are sensitive to market changes and can experience significant fluctuations.
- Long-Term Focus: Aggressive funds are suited for investors who can stay invested for a longer time to benefit from market recoveries and growth.
- Active Fund Management: Professional fund managers manage these funds, actively seeking to maximise returns while managing risks.
Types of Aggressive Mutual Funds
- Aggressive Growth Funds: These funds mostly invest in stocks and focus on high growth. They are designed to generate large returns but come with higher risk.
- Aggressive Hybrid Funds: These funds invest in both stocks and bonds, with 65-80% of the money in stocks. These funds maintain a balance between stocks and bonds to reduce the risks associated with the equity market.
Benefits of Investing in Aggressive Hybrid Mutual Funds
- Potential for High Returns: Aggressive hybrid funds invest a large portion of their money in equities (stocks). If market conditions are favourable, stocks can offer higher returns over the long term compared to other investment options like debt funds.
- Diversification: These funds invest in both stocks and bonds, offering a mix of two asset classes. Diversification helps mitigate the risk, so if one part of the market is not performing well, the other part may help balance out the overall performance.
- Balanced Investment Strategy: Aggressive hybrid funds combine the growth potential of stocks with the stability that bonds provide. This strategy helps protect investment when the market faces downturns, as the bond portion can provide stability while the equity portion aims for growth.
Risks Involved While Investing in Aggressive Funds
- Market Volatility: Aggressive balanced mutual funds invest mainly in stocks, so their returns can be unpredictable. The value of stocks can change a lot based on market conditions, company performance, or the economy, which can lead to fluctuating returns of aggressive hybrid funds.
- High Risk Exposure: These funds come with a higher risk of losing money, especially when the market is not performing well. Since they invest a lot in stocks, which can be volatile, investors might lose some of their invested capital during market downturns.
- Sector-Specific Risks: If an aggressive fund invests heavily in one sector, like technology or healthcare, it can suffer losses if that sector faces problems. Changes in the economy or regulations can negatively affect those industries, which can impact the performance of the fund.
Factors to Consider While Investing in Aggressive Funds
- Asset Allocation: Aggressive hybrid funds typically invest 65%-80% in stocks, with the rest in bonds or other debt instruments. This mix is designed to balance risk and reward. Comparing hybrid funds vs equity funds can help you understand how these funds differ in terms of risk and return.
- Investment Goals: Aggressive hybrid funds focus on long-term growth. It’s important for investors to clearly define their investment goals and determine whether these funds align with their strategy
- Risk Tolerance: Aggressive hybrid funds have more equity exposure, which means more risk. It’s important to assess your comfort level with market ups and downs before investing in these funds.
- Portfolio Diversification: A well-diversified portfolio in aggressive hybrid funds helps mitigate risk. These funds usually invest in different sectors and asset classes, which can help reduce the impact of any one investment performing poorly.
To Wrap It Up…
Aggressive hybrid funds can offer high returns by investing mostly in stocks, while also adding some stability with bonds. However, they also carry risks, like market ups and downs, and more stock exposure can lead to higher fluctuations. Investors can use tools like the Tickertape Mutual Fund Screener, which has over 50 filters, to find funds that suit their investment thesis.
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Frequently Asked Questions on Aggressive Hybrid Funds
Aggressive hybrid mutual funds are funds that invest mostly in stocks (equities) and some in debt instruments (bonds). They aim for long-term growth by putting a large portion of their money into stocks, while bonds add some stability.
The “best” aggressive fund depends on your financial goals, risk tolerance, and investment time frame. Look at factors like the returns of aggressive hybrid funds, the fund’s past performance, and how the money is split between stocks and bonds.
The return on a hybrid mutual fund depends on the fund’s strategy and market conditions. However, you can use tools like the Tickertape Mutual Fund Screener to analyse which high-return hybrid funds have been in the past.
Aggressive hybrid funds invest mainly in stocks with some bonds. For beginners, it’s important to know these funds can be volatile and may need a longer investment period to ride out market ups and downs. After considering the factors, beginners can determine if these funds align with their strategy.
No, the most aggressive mutual funds focus on growth rather than income stability, making them unsuitable if you are looking for consistent income streams.
Hybrid funds vs equity funds: Balanced advantage funds change their mix based on market conditions, while aggressive hybrid funds keep a higher portion in equities. The right choice depends on your risk tolerance and financial goals.
A disadvantage of hybrid funds for long-term growth is that they might not fully capture the growth of the stock market during a strong rally because of the debt portion. During market declines, the equity portion in aggressive hybrid funds can lead to more fluctuations than funds focused only on bonds.
When choosing a hybrid fund, consider the fund’s past performance, fees, risk level, and how well it matches your financial goals. Tools like the Tickertape Mutual Fund Screener can help you compare aggressive hybrid funds to find the one that fits your needs.
It depends on the specific fund’s policy and the performance of the stocks and bonds it holds. The main goal of most aggressive hybrid funds is to grow the value of the investment through capital appreciation, though some may offer dividends.
Hybrid funds offer tax treatment based on holding periods. For equity-oriented hybrid funds, long-term capital gains (over 1 year) are taxed at a lower rate of 12.5% with gains up to ₹1.25 lakh tax-free. However, there are no indexation benefits for either equity or debt portions.
To find aggressive hybrid funds with low risk, look for funds that maintain a balanced allocation between equities and debt. You can use tools like the Tickertape Mutual Fund Screener to filter funds based on risk levels, asset allocation, and historical performance to find those that suit your risk tolerance.
