The Indian stock market is on a bull run and is now overvalued, therefore equities investors should avoid putting all their eggs in one basket, and to prevent experiencing short-term market fluctuations, it is best to contribute a monthly amount or through a Systematic Investment Plan (SIP). As a result, we would not advise our readers to invest only in equity unless they have a particular need. Aggressive hybrid funds are a good option for individuals wanting to reallocate their portfolios against equity today. According to SEBI, these funds are required to allocate 65-80 percent of their assets towards equity and the rest in debt.
As a consequence, these funds have the potential to provide better risk-adjusted returns over the long term while still providing a sense of consistency. If stock markets decline in the near future, these funds could be well appropriate for investors with a conservative risk profile who want to witness capital growth from equity investments and fixed income from debt investments but are well-concerned about the market volatility. As a result, here we have picked up 3 aggressive hybrid mutual funds based on their rating of 1 or 5 star assigned by CRISIL as of 30th June 2021.
BOI AXA Mid & Small Cap Equity & Debt Fund
This aggressive hybrid mutual fund scheme was launched by the fund house BOI AXA Mutual Fund in the year 2016 and hence has been in existence for the last 5 years. According to Value Research, the recent 1-year returns of the BOI AXA Mid & Small Cap Equity & Debt Fund Direct-Growth are 70.79 percent, and the fund has generated 18.19 percent average annual returns since its inception.
The fund now has an equity allocation of 86.70 percent and a debt exposure of 8.2 percent. The fund's expense ratio is 1.9 percent, which is higher than the expense ratios of most other funds in the same category. The fund has major equity allocation across Chemicals, Technology, Healthcare, Financial, Automobile sectors.
The fund's top-performing holdings are ICICI Securities Primary Dealership Ltd., Computer Age Management Services Ltd., Persistent Systems Ltd., APL Apollo Tubes Ltd., Astral Poly Technik Ltd.. In terms of rating, the fund has got a 1 or 5-star rating by CRISIL, 3 star by Value Research and 4 star by Morningstar.
As of 27th September 2021, the Net Asset Value (NAV) of the fund is Rs 23.81 and has an Asset Under Management (AUM) of Rs 345.29 Cr. The fund charges an exit load of 1% if purchased units of more than 10% are redeemed within 12 months of the investment date. With a minimum amount of Rs 1,000 one can start SIP in this fund.
Kotak Equity Hybrid Fund Direct-Growth
This fund has been in existence for the last 6 years having been launched in the year 2014 by the fund house Kotak Mahindra Mutual Fund. According to Value Research, Kotak Equity Hybrid Fund Direct-Growth returns over the previous year are 54.77 percent, and it has generated 14.52 percent average annual returns since its commencement.
The fund now has a 73.80 percent allocation towards equity and a 15.00 percent exposure towards debt. The fund's expense ratio is 0.79 percent, which is lower than the expense ratio of most other funds in the same category. The fund has a large equity exposure across Financial, Technology, Construction, Energy, Healthcare sectors.
As of now, the top 5 holdings of the fund are ICICI Bank Ltd., Infosys Ltd., HDFC Bank Ltd., GOI, State Bank of India. The fund has been rated 1 or 5 star by CRISIL, 4 star by Value Research and again a 4 star rating by Morningstar which simply indicates how well the fund has performed since its launch.
The fund's Net Asset Value (NAV) is Rs 43.68 as of September 27, 2021, and its Asset Under Management (AUM) is Rs 1,986.17 Cr. Kotak Equity Hybrid Fund Direct-Growth fund charges an exit load of 1% and investors can start SIP in this fund with Rs 1,000 per month.
PGIM India Hybrid Equity Fund-Growth
This aggressive hybrid scheme was launched by the fund house PGIM India Mutual Fund in the year 2004 and thus is in existence for the last 17 years. According to Value Research, PGIM India Hybrid Equity Fund-Growth returns over the previous year have been 46.73 percent, with an average annual return of 13.86 percent since its debut.
The fund currently has a 76.00 percent equity allocation and a 13.10 percent debt exposure. The fund has a 2.42 percent expense ratio, which is more than most other Aggressive Hybrid products. The fund invests heavily in the financial, chemical, energy, engineering, and construction sectors. PGIM Jennison Global Equity Opportunities Fund, Reliance Industries Ltd., HDFC Bank Ltd., GOI, and Kotak Mahindra Bank Ltd. are the fund's top five holdings.
The fund has been ranked 1 star by CRISIL, 2 star by Value Research and again a 2 star from Morningstar which investors should and should keep in mind before investing. The fund charges an exit load of 0.5% if units in excess of 10% are redeemed within 90 days of the purchased date.
As of 27th September 2021, the fund has a NAV of Rs 16.36 and an AUM of Rs 138.98 Cr. According to Value Research, one can make a minimum SIP investment of Rs 1,000 in this fund.
Top Rated Aggressive Hybrid Funds In 2021
Based on the ranking of 1 or 5 star given by CRISIL, here are the 3 Aggressive Hybrid Funds that you can consider to start SIP in 2021.
|Funds||1 mth returns||6 mth returns||1 yr returns||3 yr returns||5 yr returns|
|BOI AXA Mid & Small Cap Equity & Debt Fund||5.21%||35.36%||70.79%||22.61%||17.49%|
|Kotak Equity Hybrid Fund Direct-Growth||4.30%||18.02%||54.77%||20.42%||14.76%|
|PGIM India Hybrid Equity Fund-Growth||5.03%||21.93%||46.73%||14.36%||10.69%|
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