Top 5 Aggressive Hybrid Funds Delivering Over 20% Returns in the Last 5 Years
If you are an investor looking for a balance of equity growth and debt stability, aggressive hybrid funds can be a smart option. These funds typically invest about 65–80% in equities and the rest in debt instruments, aiming to deliver higher returns than pure debt funds while cushioning equity market risks.
From 2020 to 2025, some aggressive hybrid funds have delivered exceptional returns of over 20% annually. Let’s look at the top five performers that stand out for investors in 2025.
1. ICICI Prudential Equity & Debt Fund – Direct Growth
This powerhouse tops the list with a whopping 24.79% five-year return, making it a favourite among savvy investors. Managed by the renowned Sankaran Naren, who employs a contrarian strategy, the fund strikes a smart balance: about 70% in equities for growth and 30% in debt for cushioning volatility. With assets under management (AUM) at ₹44,605 crores, it’s the giant in this space, reflecting massive trust from the investor community.
Key perks include a low expense ratio of 0.96%, a super-affordable minimum SIP of just ₹100, and solid three-year returns at 20.38%. Watch out for the exit load: 1% if you redeem more than 10% of your investment within a year. If you’re starting small and aiming big, this could be your go-to
5-Year Returns: 24.79%
AUM: ₹44,605 crore (largest in the category)
Expense Ratio: 0.96%
SIP Minimum: ₹100
3-Year Returns: 20.38%.
Also Read :- Why Hybrid Mutual Funds Are Your Best Bet for Balanced Wealth Creation in 2025
2. Bank of India Mid & Small Cap Equity & Debt Fund – Direct Growth
Coming in hot at 23.99% five-year returns, this fund zeroes in on mid and small-cap stocks—think high-growth companies that can supercharge your portfolio. It pairs these with debt instruments for some balance, and despite its modest AUM of ₹1,258 crores, it punches above its weight in performance.
You’ll love the expense ratio of 0.86% and three-year returns of 20.66%. The minimum SIP is ₹1,000, and its equity allocation breaks down to 41.63% mid-caps and 27.9% small-caps, totaling 69.53% in stocks. If you’re bullish on emerging companies, this one’s worth considering.
5-Year Returns: 23.99%
AUM: ₹1,258 crore
Expense Ratio: 0.86%
SIP Minimum: ₹1,000
3-Year Returns: 20.66%
3. Quant Aggressive Hybrid Fund – Direct Growth
Formerly the Quant Absolute Fund, this scheme delivers 22.33% over five years through a data-driven quantitative approach. It’s navigated market ups and downs effectively, though recent short-term dips highlight the need for patience. With an AUM of ₹2,101 crores, it’s gaining traction.
Standout features: A competitive 0.75% expense ratio, ₹1,000 minimum SIP, and three-year returns at 13.30%. The exit load is 1% for redemptions within 15 days—pretty lenient. Ideal for those who appreciate a systematic, numbers-based strategy.
5-Year Returns: 22.33%
AUM: ₹2,101 crore
Expense Ratio: 0.75%
SIP Minimum: ₹1,000
3-Year Returns: 13.30%
4. JM Aggressive Hybrid Fund – Direct Growth
Boasting 22.05% five-year returns and leading the pack in three-year performance at 22.43%, this fund is a consistent star. Its smaller AUM of ₹841 crores doesn’t hold it back, and it shines in volatile markets.
It offers the lowest expense ratio among the top five at 0.60%, a minimum SIP of ₹500, and a 1% exit load within 60 days. If cost efficiency and short-term strength matter to you, JM could be a winner.
5-Year Returns: 22.05%
AUM: ₹841 crore
Expense Ratio: 0.60% (lowest among top 5)
SIP Minimum: ₹500
3-Year Returns: 22.43% (best in category)
5. Edelweiss Aggressive Hybrid Fund – Direct Growth
Rounding out our list with 21.26% five-year returns, Edelweiss stands out for its rock-bottom 0.40% expense ratio—the most cost-effective here. Launched back in 2013, it has over 12 years of track record and an AUM of ₹2,994 crores.
Other highlights: ₹500 minimum SIP, 19.57% three-year returns, and steady performance across cycles. For value-conscious investors seeking longevity, this fund delivers.
5-Year Returns: 21.26%
AUM: ₹2,994 crore
Expense Ratio: 0.40% (lowest overall)
SIP Minimum: ₹500
3-Year Returns: 19.57%
Comparison of Top 5 Aggressive Hybrid Funds (2020–2025)
| Fund Name | 5-Year Returns | 3-Year Returns | AUM (₹ Cr) | Expense Ratio | Min. SIP |
|---|---|---|---|---|---|
| ICICI Prudential Equity & Debt Fund | 24.79% | 20.38% | 44,605 | 0.96% | ₹100 |
| Bank of India Mid & Small Cap Equity & Debt Fund | 23.99% | 20.66% | 1,258 | 0.86% | ₹1,000 |
| Quant Aggressive Hybrid Fund | 22.33% | 13.30% | 2,101 | 0.75% | ₹1,000 |
| JM Aggressive Hybrid Fund | 22.05% | 22.43% | 841 | 0.60% | ₹500 |
| Edelweiss Aggressive Hybrid Fund | 21.26% | 19.57% | 2,994 | 0.40% | ₹500 |
Key Takeaways for Investors
- High Returns: All five funds delivered over 20% annualized returns in the past 5 years, beating many equity-only funds.
- High Risk: As per SEBI’s risk-o-meter, these carry a Very High Risk tag due to heavy equity allocation.
- Best for Long Term: Ideal for investors with a 5–7 year horizon and moderate to high risk appetite.
- Cost Matters: Edelweiss and JM stand out for their lower expense ratios, while ICICI Prudential leads in size and consistency.
Bottom line: If you want to combine growth with some downside protection, aggressive hybrid funds are worth considering. ICICI Prudential Equity & Debt Fund is a leader in size and returns, JM Hybrid is strong for 3-year performance, and Edelweiss offers cost efficiency. Choose based on your risk profile and investment horizon.
FAQs (Frequently Asked Quentios)
- What are aggressive hybrid funds?
Aggressive hybrid funds invest 65-80% in equities and the rest in debt, aiming for high growth with some stability. They’re suitable for long-term investors with high risk tolerance. - Which aggressive hybrid fund has the highest 5-year returns in 2025?
ICICI Prudential Equity & Debt Fund – Direct Growth leads with 24.79% annualized returns over the past five years. - Are these funds risky?
Yes, they carry a “Very High Risk” rating due to equity exposure. Investors should have a 5-7 year horizon to manage volatility. - What’s the minimum investment for these funds?
SIPs start from ₹100 (ICICI Prudential) up to ₹1,000, making them accessible for various budgets. - How are gains from aggressive hybrid funds taxed?
Short-term capital gains (within 1 year) are taxed at 20%, and long-term gains above ₹1.25 lakh at 12.5%.
Disclaimer :- Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance of the listed aggressive hybrid funds, based on data as of August 2025, does not guarantee future results. These funds carry a “Very High Risk” rating due to high equity exposure. Short-term capital gains (within 1 year) are taxed at 20%, and long-term gains above ₹1.25 lakh at 12.5%. Consult a financial advisor to ensure suitability for your goals and risk tolerance.
