Top 3 hybrid mutual funds that turned Rs 1 lakh into more than Rs 1,50,500 in just 1 year; data may leave you surprised

What kind of returns can a hybrid mutual fund scheme deliver? Here's a list of three hybrid MF schemes that turned Rs 1 lakh invested on April 6, 2023, into at least Rs 1,50,500 on April 8, 2024, beating their respective benchmarks—including the CRISIL Hybrid 35+65 Aggressive, Nifty Mid Small Cap 400 TRI and CRISIL Short-Term Bond indices—by a huge margin, according to data from the Association of Mutual Funds in India (AMFI). 

Also, two other schemes rewarded investors with a one-year return of more than 41 per cent (turning Rs 1 lakh into at least Rs 1,41,100). Here's the list of the top hybrid mutual fund schemes, belonging to the aggressive and multi-asset allocation categories, as of April 8: 

Source: amfiindia.com

To put things into perspective, here's what a lump sum investment of Rs 1,00,000 in these schemes a year ago would have grown into, as of April 8, 2024:

• JM Aggressive Hybrid Fund: Rs 1,53,100
• Quant Multi Asset Fund: Rs 1,50,800
• Bank of India Mid & Small Cap Equity & Debt Fund: Rs 1,50,500
• ICICI Prudential Equity & Debt Fund: Rs 1,42,300
• Quant Absolute Fund: Rs 1,41,100

What are hybrid funds?

Hybrid funds offer a middle ground between equity and debt investments, providing a balanced approach to wealth creation and risk management. Also known as balanced funds, hybrid funds are a type of investment fund that combines different asset classes in a single portfolio, typically consisting of a mix of stocks, bonds, and other securities, offering investors diversification and a balanced risk-return profile.

Hybrid MFs aim to provide investors with the benefits of both equity and debt investments. By diversifying across asset classes, these funds help reduce overall portfolio risk while potentially offering higher returns than traditional fixed-income investments.

Are hybrid funds different from equity or debt mutual funds?

Yes, hybrid funds stand out from equity and debt funds in several ways. While equity funds primarily invest in stocks, offering higher returns but also higher risks, debt funds focus on fixed-income securities with lower risks and returns.

Types of hybrid funds

AMFI classifies hybrid funds into the following distinct categories:

• Conservative hybrid funds
• Balanced hybrid funds
• Aggressive hybrid funds
• Dynamic asset allocation hybrid funds
• Balanced advantage hybrid funds
• Arbitrage hybrid funds
• Equity savings hybrid funds

Each type has a unique asset allocation strategy tailored to meet specific investment objectives.

ALSO READ: What are hybrid MF schemes? Are they a better investment option than other mutual funds?         

Meanwhile, inflows into hybrid mutual fund schemes came in at Rs 5,583.6 crore in March as against Rs 18,105.1 crore the previous month, AMFI data showed.

Across the categories, hybrid funds mobilised funds to the tune of Rs 34,220.6 crore in March, according to the monthly AMFI report. Read more on latest AMFI data here

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