Hybrid Funds that outperformed their benchmarks

Hybrid funds are the mutual funds that invest in more than one class of assets, which mostly includes equity and debt. This character of hybrid funds make them perfect as a stand-alone option, good funds for beginners or core holdings in a complete mutual fund portfolio.

According to the SEBI categorisation of schemes there are six types of hybrid funds. What differentiates these categories is the percentage of investment in different category of assets. For example, conservative hybrid fund invests in equity & equity-related instruments between 10 per cent and 25 per cent  of total assets while in debt instruments it invests between 75 per cent per cent and 90 per cent per cent of total assets. In case of aggressive hybrid funds, equity & equity related instruments forms between 65 per cent and 80 per cent of total assets while debt instruments forms between 20 per cent  and 35 per cent  of total assets. 

In the following tables, we will see the performance of four major categories of hybrid funds. Despite generating returns better than most of the equity diversified funds, very few funds have managed to beat their benchmark returns in the same period. In case of multi-asset allocation category none of the funds managed to beat their benchmark returns in last one year.

Performance of Aggressive Hybrid Funds in last one year (Funds Highlighted in grey have outperformed their benchmarks)