If you’re looking for a way to grow your savings a bit faster than a fixed deposit, without taking on the full ups and downs of the stock market, aggressive hybrid mutual funds might be worth understanding. In simple terms, these funds put most of your money usually 65% to 80% as per SEBI into company shares, and the rest into safer options like government and corporate bonds.
Aggressive hybrid funds can offer a middle path between fixed deposits and pure equity investing, suited to those comfortable with moderate risk and a medium to long term horizon. The idea is to give you better growth potential than a pure debt fund, while the bond portion acts as a cushion when markets get bumpy.
This article walks you through what these funds are, how some well known names have performed recently based on verified industry data, and what to think about before investing.
What Are Aggressive Hybrid Funds?
Picture a recipe with two main ingredients: equity (shares) for growth, and debt (bonds) for stability. Earlier, this category was called “balanced funds,” but after a 2017 regulatory reclassification by SEBI, it was renamed “aggressive hybrid funds” because the equity portion is quite high, typically 65% to 80%, with the rest in debt instruments.
A Look at Aggressive Hybrid Fund’s Recent Performance
One example is the Kotak Aggressive Hybrid Fund (Direct Growth). According to the fund house’s own factsheet, as of 3rd June 2026, this fund has provided annualized returns of 4.19% over the last 1 year, 14.46% over 3 years, and 12.98% over 5 years, with an asset base of around Rs.8,670 crore as of 31st May 2026.
Another fund that has consistently caught analysts’ attention is the Edelweiss Aggressive Hybrid Fund. According to CRISIL Research’s review for Business Standard, the fund outperformed its benchmark (CRISIL Hybrid 35+65 Aggressive Index) over the past one, two, three, five, seven, and 10 year trailing periods, as well as its category peers. To put this in perspective, CRISIL noted that an investment of Rs.10,000 made in April 2015 would have grown to Rs. 28,584 by April 2025, an annualised return of 11.06%, compared to Rs.26,586 for the category average and Rs. 28,321 for the benchmark.
The UTI Aggressive Hybrid Fund is another long-standing name. CRISIL Research found that it outperformed its benchmark across the one, two, three, five, seven, and ten year trailing periods, and a Rs.10,000 investment made in May 2015 would have grown to Rs.31,536 by May 2025, an annualised return of 12.16%, against Rs.30,002 for the category and Rs. 31,031 for the benchmark.
Looking at the broader category, Business Standard reported that hybrid funds on average delivered close to 7% returns over the past year, around 16.5% over two years, and over 17% over five years, according to industry data. Meanwhile, the category itself has been growing in popularity aggressive hybrid mutual fund assets rose to Rs. 2.5 lakh crore by October 2025, a 13% increase from a year earlier.
Best Schemes to Invest in June 2026
Some of the key best investment funds in June 2026, as per the report of economic times are stated below,
- ICICI Prudential Equity & Debt Fund
- SBI Equity Hybrid Fund
- Canara Robeco Equity Hybrid Fund
- Edelweiss Aggressive Hybrid Fund
- Kotak Aggressive Hybrid Fund
- A Few Things to Keep in Mind
Before choosing a fund, how comfortable would you be if the value dipped for a while before recovering? These funds carry real equity exposure, so short-term fluctuations are normal. Can you stay invested for at least three to five years? These funds tend to reward patience. Also check the expense ratio a lower yearly fee means more of your money stays invested.