When Sensex and Nifty are near record highs, investing in solely equity funds might be more perilous. As a consequence, aggressive hybrid funds might be a solid choice for investors with a relatively high-risk tolerance and a low appetite for volatility who can start SIP in these funds for long-term capital gains. Aggressive Hybrid Funds invest 65 to 80 percent of their holdings in equity stocks and only 20 percent of their holdings in debt or FD-like securities which ensures that these funds are less risky as compared to pure equity funds.
In the long run, equity as an investment vehicle has the scope to provide high returns and affluence for investors having high-risk tolerance, whereas debt funds are the best bet for a steady source of income just like fixed deposits in the long run for risk-averse investors. As a result, top-performing Aggressive Hybrid funds are well known when markets fall as they can reduce your exposure to equity by leveraging the debt section of your investment to ameliorate the consequence. Keeping all these factors in mind here we have picked up top-performing and high-rated aggressive hybrid funds to start SIP in 2021.
Canara Robeco Equity Hybrid Fund Regular Growth
Canara Robeco Equity Hybrid Fund Direct-Growth is an Aggressive Hybrid mutual fund scheme that was established in January 2013 by the fund house Canara Robeco Mutual Fund. According to Value Research, this is a medium-sized fund in its category with last-year returns of 37.74 percent and average annual returns of 15.61 percent since its debut. The financial, technology, healthcare, automobile, and construction sectors make up the majority of the fund's equity sector allocation.
Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and GOI are the fund's top five holdings. The fund charges a 1.95 percent expense ratio, which is more than most other funds in the same category but the returns over three to ten years are higher than the category average. The fund currently has Rs 5,636 crore in assets under management (AUM) and a NAV of Rs 231.04 as of July 23, 2021. If more than 10% of the units are redeemed within a year, the fund imposes a 1% exit load. A minimum monthly contribution of Rs 1000 is set to initiate a SIP in this fund.
Quant Absolute Fund Direct Growth
Quant Absolute Fund Direct-Growth is an Aggressive Hybrid mutual fund scheme launched by the fund house Quant Mutual Fund in January 2013. The fund has a 2.15 percent expense ratio, which is more than most other Aggressive Hybrid funds. The fund now has a 77.90 percent equity allocation and a 2.01 percent debt exposure. Quant Absolute Fund Direct-Growth returns in the previous year were 81.38 percent, according to Value Research, and it has generated 18.37 percent average annual returns since its commencement.
The equity part of the fund invests largely in the FMCG, Financial, Metals, Construction, and Healthcare industries. ITC Ltd., Indiabulls Real Estate Ltd., Godrej Agrovet Ltd., Tata Steel Ltd., and Fortis Healthcare (India) Ltd. are among the top five holdings of the fund. As of July 23, 2021, the fund's asset under management (AUM) totaled Rs 53 crore, with a net asset value (NAV) of Rs 268.37. The fund has no exit load and requires a minimum monthly contribution of Rs 1000 to start a SIP.
Mirae Asset Hybrid Equity Fund Direct Growth
Mirae Asset Hybrid Equity Fund Direct-Growth is an Aggressive Hybrid mutual fund scheme established by Mirae Asset Mutual Fund in 2015. This fund is a medium-sized Aggressive Hybrid fund with an expense ratio of 0.41 percent, which is lower than the expense ratios charged by most other funds in the same category. The fund now has a 74.70 percent equity allocation and an 18.01 percent debt exposure. According to Value Research, Mirae Asset Hybrid Equity Fund Direct-Growth returns over the previous year have been 38.34 percent, and it has generated 14.81 percent average annual returns since its inception.
The equity component of the fund is primarily invested in the financial, technology, energy, healthcare, and fast-moving consumer goods sectors. GOI, HDFC Bank Ltd., Infosys Ltd., ICICI Bank Ltd., and Axis Bank Ltd. are the fund's top five holdings. The fund charges an exit load of 1% if units are redeemed within 1 year of investment. The fund's asset under management (AUM) is Rs 5,345 crore as of July 23, 2021, with a net asset value (NAV) of Rs 22.87. To initiate a SIP, the fund requires a minimum monthly contribution of Rs 1000.
Best Aggressive Hybrid Funds In India 2021
Here are the top-performing aggressive hybrid funds in 2021 based on ratings and past performance.
|Funds||1-Year Returns||3-Year Returns||5-Year Returns||Rating by Morningstar||Rating by Value Research|
|Canara Robeco Equity Hybrid Fund Regular Growth||36.15%||15.05%||14.21%||5 Star||5 Star|
|Quant Absolute Fund Direct Growth||81.38%||27.36%||19.31%||5 Star||5 Star|
|Mirae Asset Hybrid Equity Fund Direct Growth||38.34%||16.46%||15.84%||4 Star||5 Star|
Should You Invest?
In unfortunate market conditions, investors seeking modest returns may choose to invest in the above-discussed aggressive hybrid funds for at least 3-years for good post-tax returns as these funds have less risk exposure compared to pure equity funds as some part of your money invested are allocated across debt instruments such as sovereign, financial and so on. Hybrid funds use a mix of debt and equity to achieve long-term capital growth and also stable income for your short-term financial goal. Aggressive Funds are suitable for individuals with a moderate risk appetite seeking equity-like returns in the long-term can invest in aggressive hybrid funds for 3 years to 5 years.
However, investors should and should keep in mind before investing that aggressive hybrid funds can be risky as the funds have a blend of small-cap stocks and low-credit quality debt securities in the equity and debt portfolio. Talking about the expected returns, let me make you very clear that returns from aggressive hybrid funds are influenced by a fluctuation in the interest rate of our Indian economy as a result it directly makes an impact on underlying debt instruments of the funds by which you can predict your returns. However, due to their higher equity allocation, these funds may deliver above-average and risk-adjusted returns if opposed to pure debt and equity funds in the long term.
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