Seven hybrid categories, one year
"Hybrid" covers funds that behave very differently: some hold almost no market risk, others hold mostly equity. Looking at Direct Growth plans (the original non-IDCW code, segregated portfolios excluded) with NAVs as of 22 October 2026, one-year returns lined up by how much equity risk the category carries.
| Category | Funds | Avg 1Y | Median 1Y | Worst | Best | Funds positive |
|---|---|---|---|---|---|---|
| Arbitrage | 34 | 6.54% | 6.52% | 5.03% | 7.61% | 34 |
| Equity Savings | 23 | 1.69% | 1.65% | -2.44% | 6.00% | 19 |
| Multi Asset Allocation | 31 | 1.17% | 1.38% | -4.75% | 8.55% | 19 |
| Conservative Hybrid | 17 | 0.54% | 0.77% | -1.96% | 2.59% | 10 |
| Balanced Hybrid | 2 | -0.31% | -0.31% | -1.20% | 0.59% | 1 |
| Dynamic Asset Allocation / Balanced Advantage | 36 | -2.66% | -2.33% | -7.25% | 8.28% | 6 |
| Aggressive Hybrid | 28 | -3.92% | -3.86% | -9.04% | 8.32% | 4 |
Source: WealthTicker fund metrics, NAVs as of 22 October 2026. Balanced Hybrid has two funds, so treat its row as a footnote.
Arbitrage: narrow and positive
Arbitrage funds hedge their equity positions, so their NAV mostly tracks short-term rates rather than the market. The result shows in the numbers: every one of 34 funds was positive, the spread from worst to best was about 2.6 points, and the average worst three-year fall was just -0.47%.
The equity-heavy end
Aggressive hybrid funds average -3.92% and only 4 of 28 were positive. Balanced advantage funds, which can change their equity share, averaged -2.66% with 6 of 36 positive. They fell less, but not by much; the best fund in each group returned about 8.3%, so a few managers positioned well, but the median fund did not.
The average worst three-year fall tells the same story:
| Category | Avg worst 3Y fall | Avg volatility |
|---|---|---|
| Arbitrage | -0.47% | 1.15% |
| Equity Savings | -4.90% | 4.54% |
| Conservative Hybrid | -3.72% | 3.70% |
| Multi Asset Allocation | -10.34% | 9.96% |
| Dynamic Asset Allocation | -10.37% | 8.47% |
| Aggressive Hybrid | -13.81% | 11.03% |
Dynamic asset allocation funds fell nearly as far as multi-asset funds at the worst point, despite a lower average volatility, which is a reminder that "balanced" in the name is not a measure of downside.
One year versus three
The one-year ranking is almost the reverse of the three-year one. Median three-year returns were 13.14% for multi asset, 9.80% for aggressive hybrid, 8.51% for dynamic asset allocation, 7.88% for equity savings, 7.26% for conservative hybrid and 7.21% for arbitrage. Categories at the bottom of this year's table sit near the top of the three-year one, because the earlier years were stronger for equity.
Short windows reward whichever category was least exposed to the last twelve months. A longer window answers a different question.
How to use this
Pick the category by what the money is for, then compare funds inside it. A fund's page shows its volatility, max drawdown and rolling returns; the screener can filter to a single hybrid category. For how equity funds themselves fared across the year, see where the shelter was in 2026, and for debt, the debt fund duration post.
This is commentary on the site's own data, not a recommendation of any fund.
Frequently asked questions
Which hybrid category did best over one year to 22 October 2026?
Arbitrage funds, with an average one-year return of 6.54% and all 34 Direct Growth funds positive. Their range was narrow, 5.03% to 7.61%.
Why did aggressive hybrid funds fall more than balanced advantage funds?
Aggressive hybrids hold a larger equity share, so they follow the equity market more closely. They averaged -3.92%, against -2.66% for dynamic asset allocation funds, which can reduce equity exposure.
Does one year say which hybrid category is better?
No. Three-year median returns were between 7.2% and 13.1% across categories, and the ordering differs from the one-year ranking.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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