Aggressive Hybrid Funds Surge Amidst Market Volatility

Aggressive hybrid mutual funds have gained popularity, with the asset base growing to Rs 2.5 lakh crore by October 2025, up 13% from the previous year. This growth reflects a rising investor preference for balanced investment strategies that blend equity and debt, delivering robust returns across different timeframes.

Aggressive hybrid mutual funds are witnessing burgeoning popularity among investors, with the asset base climbing to Rs 2.5 lakh crore by October 2025, marking a 13% increase from a year ago.

This growth comes as benchmark Nifty experienced a prolonged correction, prompting investors to seek stability in blended portfolios.

According to AMFI data, the investor base widened significantly, with folio numbers surging by 4 lakh within a year, reflecting the appeal of combining growth with stability in investment strategies.

Industry analysis shows these funds yielded nearly 7% returns over the past year, 16.5% over two years, and more than 17% over five years.

The balanced approach in aggressive hybrid funds, mixing equity and debt exposures, offers a buffer amidst market volatility.

Experts highlight that aggressive hybrid funds, like ICICI Prudential Equity & Debt Fund, yield better returns compared to the Nifty 50 Hybrid Composite Debt 65:35 Index.

These schemes also offer monthly dividend payouts, attracting investors seeking regular income amid tax benefits.

(With inputs from agencies.)