Understanding Aggressive Hybrid Mutual Funds
Aggressive hybrid funds are a mix of equity and debt asset classes with equity portion on the higher side. The equity component generates capital appreciation, while the debt component provides protection. These funds are less risky compared to pure equity funds.
Aggressive hybrid funds allocate 65% towards equity and the remainder towards debt, cash or cash equivalents.
These funds provide diversification across asset classes.
Ideal for 3+ years investment horizon.
Top schemes of Aggressive Hybrid Mutual Funds
| Fund Name | Returns | Actions | ||
|---|---|---|---|---|
| 1 Year | 3 Year | 5 Year | ||
Returns calculator
Total Invested : ₹ 6,00,000
Profit : ₹ 56,200,000
Current value : ₹ 1,16,20,000
Frequently Asked Questions
Which is the best aggressive fund?
You can't rely on past performance to select a mutual fund. However, here are some factors to consider the best aggressive fund.
Performance: Look for funds with consistent returns.
Expense Ratio: Choose funds with an expense ratio lower than the category average.
Fund Size: Consider larger funds for stability, but smaller funds may offer agility.
Risk Rating: Ensure you're comfortable with a high risk level.
Manager Expertise: Check the fund manager's track record.
Portfolio Composition: Assess equity-to-debt allocation and sector diversity.
What is the difference between a balanced hybrid and an aggressive hybrid?
The key difference between a Balanced Hybrid Fund and an Aggressive Hybrid Fund lies in their equity and debt allocation, affecting their risk and return potential.
What is the tax on aggressive hybrid funds?
Aggressive hybrid funds are equity-dominant funds. So, according to the holding period, the long-term capital gains would be 12.5% and short-term capital gains at 20%.
What is the difference between an aggressive hybrid fund and a flexi-cap fund?
According to the regulations, a flexicap fund is a pure equity fund, it doesn't need to invest in debt. However, an aggressive hybrid fund allocates 25% of its assets to debt, cash, or equivalent instruments.
What is the difference between the HDFC Balanced Advantage Fund and the JM Aggressive Hybrid Fund?
Category:
HDFC Balanced Advantage Fund - Dynamic Asset Allocation (Balanced Advantage Fund)
JM Aggressive Hybrid Fund - Aggressive Hybrid Fund
Equity & Debt Allocation:
HDFC Balanced Advantage Fund: Equity (30% - 80%), Debt (20% - 70%) (Varies dynamically)
JM Aggressive Hybrid Fund: Equity (65% to 80%), Debt (20% to 35%) (Fixed)
Risk Level:
HDFC Balanced Advantage Fund - Moderate to High (Lower volatility due to dynamic allocation)
JM Aggressive Hybrid Fund - High (More exposure to equities)
Return Potential:
HDFC Balanced Advantage Fund - Moderate to High (Risk-adjusted)
JM Aggressive Hybrid Fund - High (Higher equity exposure, more volatility)
Investment Strategy:
HDFC Balanced Advantage Fund - Adjusts allocation based on market conditions (lowers equity in expensive markets, increases in cheap markets).
JM Aggressive Hybrid Fund - Maintains a fixed high equity allocation for long-term growth.
Suitability:
HDFC Balanced Advantage Fund - Investors seeking low volatility with market-driven asset allocation.
JM Aggressive Hybrid Fund - Investors willing to take higher risk for long-term capital appreciation.
Taxation:
Both funds are taxed as equity funds (if equity allocation is 65 %+).
Which is better, a balanced advantage fund or an aggressive hybrid fund?
The choice between a Balanced Advantage Fund (BAF) and an Aggressive Hybrid Fund (AHF) depends on your risk tolerance, investment horizon, and financial goals. See the previous answer for a detailed comparison.
What are the benefits of aggressive hybrid funds?
There are multiple benefits of aggressive hybrid funds:
Built-in diversification
High growth potential
Lower risk than pure equity funds
Equity taxation benefits
Suitable for moderate risk profile investors
Are hybrid funds safe?
Hybrid funds are relatively safer than pure equity funds, but are not completely risk-free. Their safety depends on the type of hybrid fund and its equity vs. debt allocation.
Who should invest in aggressive hybrid funds?
Investors who want long-term capital appreciation with lower risk than equity funds.
Those who want an equity-oriented portfolio but with some stability from debt allocation.
Beginners in equity investing who want a mix of growth and risk protection.
Retirees who want a combination of growth and stable returns via SWP.