Aggressive hybrid vs large-cap funds: the cushion in numbers

The number

A fund that holds 65–80% in equity and the rest in debt is built to lose less when shares fall. In the year to 1 October 2026 it did. The median aggressive hybrid fund returned -1.26%, against -4.71% for the median large-cap fund. Over three years the hybrids' median was 10.04% a year against 8.88% for large-caps.

All figures are for the Direct plan, Growth option, computed from daily NAVs to 1 October 2026. Returns of a year or more are compounded annual rates. There are 29 funds in the category; 28 have a one-year record.

Hybrid against large-cap, side by side

Median fund	Aggressive hybrid	Large-cap
1-year return	-1.26%	-4.71%
3-year return (a year)	10.04%	8.88%
5-year return (a year)	9.06%	8.32%
10-year return (a year)	11.76%	11.64%
Volatility	10.66%	13.30%
Worst fall over 3 years	13.11%	16.44%
Funds with a negative year	18 of 28	30 of 33

The hybrids' median is ahead on every return window and lower on both risk measures. Over ten years the two are nearly level; the cushion has cost almost nothing in long-run return, though only 18 hybrids and 22 large-cap funds have that much history.

The spread

	1 year	3 years	5 years	10 years
Funds counted	28	28	25	18
Worst	-6.91%	5.43%	6.28%	9.30%
Lower quartile	-3.60%	8.57%	7.68%	9.87%
Median	-1.26%	10.04%	9.06%	11.76%
Upper quartile	1.42%	11.79%	11.12%	13.05%
Best	13.57%	16.01%	14.56%	16.02%

Who led over three years

Fund (Direct, Growth)	1 year	3 years	Volatility	Worst 3-yr fall
Bank of India Aggressive Hybrid	13.57%	16.01%	15.0%	20.0%
Bandhan Aggressive Hybrid	4.72%	13.38%	11.9%	13.5%
Quant Aggressive Hybrid	5.82%	12.45%	13.1%	18.6%
HSBC Aggressive Hybrid	3.91%	12.36%	13.6%	19.6%
ICICI Prudential Aggressive Hybrid	-1.80%	11.95%	10.0%	11.2%
…
Tata Aggressive Hybrid	-2.71%	7.11%	10.5%	14.1%
HDFC Aggressive Hybrid	-6.59%	5.43%	9.6%	12.6%

Bank of India is in a category of its own: the best one-year and three-year return, and also the highest volatility (15.0%) and the deepest three-year fall (20.0%). It behaves more like an equity fund than a hybrid.

The ones that fell least

The shallowest three-year falls were SBI Aggressive Hybrid at 9.9% (and 9.9% volatility), Franklin India Aggressive Hybrid at 10.7%, and ICICI Prudential Aggressive Hybrid at 11.2%. ICICI Prudential combined that with a five-year return of 13.40% a year, the second-best in the category.

Bandhan is a second example: a three-year return of 13.38% with a worst fall of 13.5%, close to the category median.

Reading this

An aggressive hybrid fund is a bet that a smoother ride is worth giving up some upside. This year the smoother ride did not cost any return. That will not always be so: when equities rally, a fund with up to 35% in debt lags a pure equity fund. The point of the numbers is the shape of the trade, not a verdict.

For more on how the category compares with similar funds, see the June update, large-cap fund returns and volatility by category.

Returns are historical and computed from NAVs; they are not a forecast. Past returns do not indicate future performance.

Frequently asked questions

How have aggressive hybrid funds performed over the last year?

The median aggressive hybrid fund (Direct plan, Growth option) lost 1.26% in the year to 1 October 2026, across 28 funds. Eighteen were negative. The best gained 13.57% and the weakest lost 6.91%.

Do aggressive hybrid funds fall less than large-cap funds?

In this window, yes. The median worst three-year fall was 13.11% for aggressive hybrid funds against 16.44% for large-cap funds, and the median volatility was 10.66% against 13.30%.

What is the three-year return of aggressive hybrid funds?

The median was 10.04% a year across 28 funds, from 5.43% (HDFC Aggressive Hybrid) to 16.01% (Bank of India Aggressive Hybrid).

This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.

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