Best Aggressive Hybrid Mutual Funds in India (2026)
Aggressive hybrid mutual funds invest 65–80% of their assets in equity and 20–35% in debt instruments, as defined by SEBI. The equity portion drives growth while the debt portion helps reduce volatility compared with pure equity funds.
Because equity exposure remains above 65%, these funds are treated as equity-oriented funds for taxation.
Top 10 Best Aggressive Hybrid Mutual Funds in India Based on Returns, Ranks & AUM
AUM Growth of Aggressive Mutual Funds - March 2026
In the past one month, the ICICI Prudential Equity & Debt Fund Direct Plan Growth has emerged as the leader in net AUM growth, witnessing an impressive addition of ₹464.77 crore. This positions it as one of the top-performing Aggressive mutual funds in terms of investor interest and fund growth.
Fund | 1M Net Flow | 1M Net Flow % | Action |
|---|---|---|---|
 ICICI Prudential Equity & Debt Fund Current AUM: 50.21K Cr | +₹464.77 Cr | 0.94% | Invest |
 SBI Equity Hybrid Fund Current AUM: 82.32K Cr | +₹420.46 Cr | 0.51% | Invest |
 Sundaram Aggressive Hybrid Fund Current AUM: 8.14K Cr | +₹223.3 Cr | 2.85% | Invest |
 Bandhan Aggressive Hybrid Fund Current AUM: 1.75K Cr | +₹94.47 Cr | 6.00% | Invest |
 Mahindra Manulife Aggressive Hybrid Fund Current AUM: 2.2K Cr | +₹81.63 Cr | 3.87% | Invest |
Top Stock added by Aggressive Mutual Funds - March 2026
Over the last month, Tata Consultancy Services Ltd has been added to the portfolios of 5 out of 32 Aggressive mutual funds. This signals growing confidence in the stock’s long-term growth prospects among Aggressive fund managers.
Top Stock sold by Aggressive Mutual Funds - March 2026
In contrast, ICICI Bank Ltd has been sold by 6 of 32 Aggressive mutual funds in the last one month. This shift underscores a cautious approach by fund managers toward the stock, reflecting changing market dynamics.
Sector allocation of Aggressive mutual funds - March 2026
Over the last 6 months, Aggressive category has seen increased allocation towards Securitize, Utilities, Energy sectors and allocation in Communication, Tech, Real Estate sectors has decreased
Sector | AUM |
|---|---|
 Financial Services Increased by 5.16%, in last 6M | 77.73K Cr |
 Consumer Cyclical Increased by 8.67%, in last 6M | 30.83K Cr |
 Industrial Increased by 9.12%, in last 6M | 29.39K Cr |
 Basic Materials Increased by 7.46%, in last 6M | 19.07K Cr |
 Health Increased by 14.94%, in last 6M | 18.75K Cr |
 Tech Decreased by 10.70%, in last 6M | 16.2K Cr |
 Utilities Increased by 55.09%, in last 6M | 15.94K Cr |
 Energy Increased by 16.40%, in last 6M | 15.59K Cr |
 Consumer Defensive Increased by 1.75%, in last 6M | 15.09K Cr |
 Communication Decreased by 13.86%, in last 6M | 10.24K Cr |
 Real Estate Decreased by 6.49%, in last 6M | 4.66K Cr |
 Securitize Increased by 100.00%, in last 6M | 5.88 Cr |
What Are Aggressive Hybrid Mutual Funds?
Aggressive hybrid mutual funds are hybrid schemes that invest primarily in equities while maintaining a portion of the portfolio in debt instruments.
The equity portion aims to generate long-term capital growth, while the debt allocation helps moderate portfolio volatility compared with pure equity funds.
These funds combine equity and debt within a single portfolio, allowing investors to participate in equity markets while maintaining some exposure to fixed-income instruments.
Returns are market-linked and depend on the performance of both equity and debt markets.
SEBI Rules for Aggressive Hybrid Mutual Funds
Under SEBI’s mutual fund categorisation framework introduced in 2017, aggressive hybrid funds must maintain a defined allocation range between equity and debt.
For this category:
- Equity allocation must remain between 65% and 80%
- Debt allocation must remain between 20% and 35%
- Each asset management company (AMC) can offer only one scheme in this hybrid sub-category
These rules ensure that aggressive hybrid funds maintain a predominantly equity-oriented portfolio with a fixed debt component.
How Do Aggressive Hybrid Mutual Funds Generate Returns?
Aggressive hybrid mutual funds generate returns from both equity investments and debt instruments.
1. Equity component (65–80%)
The majority of the portfolio is invested in equities. Returns are primarily generated through capital appreciation as stock prices rise over time.
2. Debt component (20–35%)
The debt portion typically invests in government securities, corporate bonds, or money market instruments. This component generates interest income and helps reduce overall portfolio volatility.
3. Portfolio rebalancing
Fund managers periodically rebalance the portfolio to maintain the required equity–debt allocation range.
Because these funds maintain more than 65% equity exposure, they are taxed as equity funds.
Who Should Invest in Aggressive Hybrid Mutual Funds?
Aggressive hybrid mutual funds may be suitable for investors seeking equity exposure with a partial allocation to debt.
They may be appropriate for:
- Investors looking for equity-oriented growth with some volatility moderation
- Investors who prefer a single fund with both equity and debt exposure
- Long-term investors with an investment horizon of 5 years or more
- Investors comfortable with moderate to moderately high market risk
Investors should evaluate their financial goals, risk tolerance, and investment horizon before investing.
Benefits of Aggressive Hybrid Mutual Funds
Aggressive hybrid funds provide several structural advantages within a diversified portfolio.
- Diversified asset allocation
These funds combine equity and debt investments within a single portfolio.
- Potential for long-term capital growth
The equity portion provides exposure to companies that may deliver capital appreciation over time.
- Reduced volatility compared with pure equity funds
The debt allocation may help reduce the impact of short-term market fluctuations.
- Automatic portfolio rebalancing
The fund manager periodically adjusts the equity and debt allocation to remain within SEBI-defined limits.
Risks of Aggressive Hybrid Mutual Funds
Aggressive hybrid mutual funds carry several risks that investors should consider.
- Market risk
The equity portion of the portfolio can be affected by stock market fluctuations.
- Interest rate risk
Changes in interest rates can impact the value of debt securities held in the portfolio.
- Allocation risk
The balance between equity and debt investments may influence overall fund performance.
- Fund manager risk
Performance depends on the investment decisions made by the fund manager.
Investors should consider these risks and invest with an appropriate long-term investment horizon.
Frequently Asked Questions
Is it good to invest in an aggressive hybrid fund?
Aggressive hybrid funds are less risky than pure equity funds because they include some investments in debt securities and money market instruments. However, they still carry higher risk due to their large portion of equity investments.
What is an aggressive fund?
An aggressive growth fund is a type of mutual fund that aims to increase capital by investing in companies with high growth potential. These funds usually focus on stocks of companies expected to grow quickly, which also means they come with higher risks.
What is the ratio of aggressive hybrid funds?
Aggressive hybrid mutual funds invest at least 65% of their total assets in equities and the remaining portion in debt securities and money market instruments.
What is the difference between aggressive hybrid and equity savings funds?
Equity savings funds mainly invest in equities, while aggressive hybrid funds allocate more than 65% to equities and the rest to debt instruments. This mix allows aggressive hybrid funds to offer higher returns with some safety from the debt portion.
How do you know if a mutual fund is aggressive?
Aggressive mutual funds are usually labelled under the "growth" category. These funds aim to generate high returns by investing in stocks and bonds with the potential for significant growth.
How long should I stay invested in an aggressive growth fund?
It's recommended to hold aggressive growth funds for at least 5-7 years to benefit from long-term growth and to manage market fluctuations. These funds are ideal for investors with a long-term outlook and a high tolerance for risk.
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