Hybrid mutual funds invest across equity, debt, and, depending on the scheme, other asset classes. The allocation varies by category, making these funds suitable for investors looking for different levels of equity exposure and diversification within a single mutual fund.
Under the SEBI framework, hybrid mutual funds are divided into seven categories:
- Conservative Hybrid: 10–25% equity; 75–90% debt
- Balanced Hybrid: 40–60% equity and 40–60% debt
- Aggressive Hybrid: 65–80% equity; 20–35% debt
- Balanced Advantage/Dynamic Asset Allocation: 0–100% equity and debt, managed dynamically
- Multi Asset Allocation: At least 3 asset classes, with a minimum of 10% in each
- Arbitrage: At least 65% in equity following an arbitrage strategy
- Equity Savings: Minimum 65% equity/equity-related instruments and 10% debt, with derivatives for hedging as specified in the scheme documents.
Here are the top 5 hybrid funds that delivered the highest 10-year returns, along with those that lagged in this period.
| Hybrid Funds | 10-year return |
| Quant Multi Asset Allocation Fund | 18.39% |
| Bank of India Aggressive Hybrid Fund | 16.03% |
| Quant Aggressive Hybrid Fund | 15.81% |
| ICICI Prudential Multi Asset Allocation Fund | 15.04% |
| ICICI Prudential Aggressive Hybrid Fund | 14.80% |
*Source: Value Research, Direct plans, CAGR as on 28 September 2026
Quant Multi Asset Allocation Fund topped the list with a 10-year return of 18.39%. Bank of India Aggressive Hybrid Fund followed at 16.03%, while Quant Aggressive Hybrid Fund delivered 15.81%.
ICICI Prudential Multi Asset Allocation Fund and ICICI Prudential Aggressive Hybrid Fund also featured among the top performers, with returns of 15.04% and 14.80%, respectively.
For investors, the numbers also highlight that hybrid funds with higher equity exposure or greater flexibility in asset allocation can have significantly different long-term return outcomes.
| Hybrid Funds | 10-year return |
| Nippon India Equity Savings Fund | 5.00% |
| Sundaram Arbitrage Fund | 5.10% |
| JM Arbitrage Fund | 5.64% |
| Nippon India Conservative Hybrid Fund | 5.96% |
| PGIM India Arbitrage Fund | 6.09% |
*Source: Value Research, Direct plans, CAGR as on 28 September 2026
The lower end of the list was dominated by equity savings and arbitrage funds, which generally follow strategies designed to manage equity-market exposure and volatility differently from aggressive hybrid funds.
Nippon India Equity Savings Fund delivered the lowest returns of 5% over 10 years, followed by Sundaram Arbitrage Fund at 5.10% and JM Arbitrage Fund at 5.64%.
Nippon India Conservative Hybrid Fund and PGIM India Arbitrage Fund returned 5.96% and 6.09%, respectively.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.