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In summary
Aggressive Hybrid Funds combine equity and debt, so their returns can differ significantly across market cycles. The five funds below are ranked by their reported 3-year CAGR as of July 2026.
- The category requires 65–80% allocation to equity.
- The remaining 20–35% is invested in debt and money-market instruments.
- Bank of India Mid & Small Cap Equity & Debt Fund recorded 20.3% CAGR.
- ICICI Prudential Equity & Debt Fund recorded 16.69% CAGR.
- Past performance does not guarantee future returns.
- Expense ratio, portfolio allocation, risk, and exit load also matter.
As of August 2026, SEBI data showed 30 Aggressive Hybrid Fund schemes with AUM of about Rs. 2.66 lakh crore.
What are aggressive hybrid mutual funds?
Aggressive Hybrid Funds are open-ended hybrid schemes that invest predominantly in equity and equity-related instruments while maintaining a debt allocation. Under SEBI's framework, the category invests 65–80% in equity and equity-related instruments and 20–35% in debt instruments.
The equity component can provide exposure to long-term capital growth, while the debt component diversifies the portfolio. However, the debt allocation does not eliminate market risk.
Each scheme also carries a SEBI Riskometer. The six risk levels are Low, Low to Moderate, Moderate, Moderately High, High, and Very High.
Which aggressive hybrid funds had the highest 3-year returns in 2026?
The following five schemes had the highest 3-year CAGR among the funds listed in the July 2026 performance snapshot. CAGR, or compounded annual growth rate, expresses the annualised rate at which an investment would have grown over the period, assuming the growth was compounded.
| Rank | Fund | 3-year CAGR |
|---|---|---|
| 1 | Bank of India Mid & Small Cap Equity & Debt Fund | 20.3% |
| 2 | JM Aggressive Hybrid Fund | 19.14% |
| 3 | ICICI Prudential Equity & Debt Fund | 16.69% |
| 4 | Quant Aggressive Hybrid Fund | 16.34% |
| 5 | Bandhan Aggressive Hybrid Fund | 15.71% |
Last updated: September 2026
The ranking is based on data available as of July 2026. It is a historical performance snapshot, not a prediction of future returns. NAVs, AUM, expense ratios, and exit loads can change.
How should you compare these funds?
A 3-year CAGR can help you compare historical performance, but it should not be the only selection factor.
Check performance across market cycles
A fund's recent CAGR captures one historical period. Review performance across different market conditions to understand how the scheme has behaved during rising and falling markets.
Compare the expense ratio
The expense ratio represents the annual operating expenses charged to the scheme. All else being equal, higher recurring costs can reduce the portion of returns retained by investors.
Review the portfolio
Check the fund's equity and debt allocation, sector exposure, concentration, and the quality of its underlying holdings. The actual portfolio can differ considerably between schemes in the same category.
Check the exit load
An exit load may apply when you redeem units within a specified period. The applicable rate and period vary by scheme, so check the latest scheme documents before investing.
Who may consider aggressive hybrid funds?
These funds may be relevant to investors who want exposure to equity along with a debt component in the same scheme. They still carry substantial equity-market exposure, so they are not equivalent to fixed-income investments.
Your investment horizon and ability to tolerate fluctuations should be considered alongside the scheme's Riskometer, portfolio, costs, and investment objective.
The Bajaj Broking website provides access to 4,000+ mutual fund schemes. If you invest through an SIP, you can also use the SIP calculator from Bajaj Finance to create an estimate based on your chosen contribution, period, and assumed return.
For investors exploring regular SIP investing, best SIP mutual funds provides related information.
How are aggressive hybrid mutual funds taxed?
Aggressive Hybrid Funds generally qualify as equity-oriented mutual funds because the category requires at least 65% allocation to equity and equity-related instruments. For transfers on or after 23 July 2024, applicable equity-oriented mutual fund gains are subject to the revised capital gains rates.
Short-term capital gains covered by Section 111A are taxed at 20%, subject to applicable conditions. Long-term capital gains under Section 112A are taxed at 12.5% on gains exceeding the aggregate Rs. 1.25 lakh threshold in a financial year, subject to applicable conditions.
Tax treatment can depend on the nature and date of the transaction, so consider the applicable provisions for your circumstances.
What should you check before investing?
Before investing in an Aggressive Hybrid Fund, consider factors beyond its recent ranking.
- Check the latest 3-year and longer-period performance.
- Review the portfolio's equity and debt allocation.
- Compare the expense ratio with relevant schemes.
- Check the applicable exit-load conditions.
- Review the scheme's current Riskometer.
- Consider whether the scheme's investment objective matches your requirements.
- Read the latest scheme-related documents before investing.
Past performance is not indicative of future returns, and a fund that has delivered a high historical CAGR may not continue to do so.
Conclusion
Aggressive Hybrid Funds combine substantial equity exposure with debt investments and can therefore behave differently from both pure equity and predominantly debt-oriented schemes.
The five funds listed above had the highest 3-year CAGR in the July 2026 snapshot. Use historical returns as one input rather than as a standalone basis for evaluating a scheme. Review the portfolio, costs, exit load, Riskometer, investment objective, and your own investment requirements before investing.
Last reviewed: September 2026
Mutual funds are subject to market risk. Please read the scheme-related documents carefully before investing.
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Frequently Asked Questions
Understanding the category
Reading fund performance data
Practical investment considerations
Can an Aggressive Hybrid Fund change its equity allocation?
The category has a prescribed 65–80% range for equity and equity-related instruments under SEBI's framework. A scheme must operate within its permitted asset-allocation framework, although its actual allocation can move within the applicable range.
How is an Aggressive Hybrid Fund different from an equity fund?
The key distinction is the mandatory debt allocation. An Aggressive Hybrid Fund must maintain 20–35% in debt instruments, whereas an equity fund category has different minimum equity requirements and category-specific rules. The resulting portfolios, risk characteristics, and investment objectives can therefore differ.
Does CAGR account for dividends received from a mutual fund?
For a mutual fund scheme's published return, the reported return convention generally depends on the return series used, such as a growth or total-return measure. When comparing figures, check whether the figures are based on the same plan, option, period, and return methodology.
Why can two websites show different returns for the same fund?
Differences can arise from the date of calculation, plan or option, NAV date, return methodology, and data source. Always compare figures using the same date, plan, option, and measurement period.
Can you switch from one Aggressive Hybrid Fund to another?
A switch is generally processed as a redemption from one scheme and a purchase into another scheme. The transaction can therefore have implications such as exit load and capital gains tax, depending on the schemes and applicable rules.
Can an SIP be started in any Aggressive Hybrid Fund?
SIP availability and minimum instalment amounts are determined by the respective scheme and platform. Check the current scheme terms before starting an SIP rather than assuming that every Aggressive Hybrid Fund has identical investment requirements.
Disclaimer
Bajaj Finance Limited ("BFL") is registered with the Association of Mutual Funds in India ("AMFI") as a distributor of third party Mutual Funds (shortly referred as 'Mutual Funds) with ARN No. 90319
BFL does NOT:
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(ii) carry customized/personalized suitability assessment.
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In addition to displaying the Mutual fund products of Asset Management Companies, some general information is sourced from third parties, is also displayed on As-is basis, which should NOT be construed as any solicitation or attempt to effect transactions in securities or the rendering any investment advice. Mutual Funds are subject to market risks, including loss of principal amount and Investor should read all Scheme/Offer related documents carefully. The NAV of units issued under the Schemes of mutual funds can go up or down depending on the factors and forces affecting capital markets and may also be affected by changes in the general level of interest rates. The NAV of the units issued under the scheme may be affected, inter-alia by changes in the interest rates, trading volumes, settlement periods, transfer procedures and performance of individual securities forming part of the Mutual Fund. The NAV will inter-alia be exposed to Price/Interest Rate Risk and Credit Risk. Past performance of any scheme of the Mutual fund do not indicate the future performance of the Schemes of the Mutual Fund. BFL shall not be responsible or liable for any loss or shortfall incurred by the investors. There may be other/better alternatives to the investment avenues displayed by BFL. Hence, the final investment decision shall at all times exclusively remain with the investor alone and BFL shall not be liable or responsible for any consequences thereof.
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Disclaimer on Risk-O-Meter:
Investors are advised before investing to evaluate a scheme not only on the basis of the Product labeling (including the Riskometer) but also on other quantitative and qualitative factors such as performance, portfolio, fund managers, asset manager, etc, and shall also consult their Professional advisors, if they are unsure about the suitability of the scheme before investing.
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The information BFL contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed.
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Disclaimer
Mutual Fund SIP calculator may provide potential investors an approximate estimate on the maturity amount of the monthly SIP, purely based on mathematical calculation of the projected annual return rate selected by investor. However, such calculation does not factor the actual performance by the Asset Management Company (AMC) and should not be treated as any advice or assurance about the actual return of investment. Mutual Funds do not have a fixed rate of return and it is not possible to predict the rate of return. Please note that the SIP calculator are for illustrations only and do not represent actual returns which may vary depending on various factors including but not limited to actual performance, expense ratio, taxation, exit load (if any), etc.