Aggressive Hybrid Mutual Funds See Asset Base Surge to Rs 2.5 Lakh Crore in October 2025

Mumbai, November 28, 2025: Aggressive hybrid mutual funds continued their steady climb in October 2025 as the category’s asset base touched ₹2.5 lakh crore. The 13% year-on-year rise highlights a clear shift in investor preference toward blended portfolios that offer a cushion against persistent market corrections and heightened equity-market volatility. With economic uncertainty remaining elevated, more investors are turning to schemes that balance growth potential with stability.

Sharp Rise in Investor Participation

Investor folios in this category increased to 60.44 lakh in October 2025 from 56.41 lakh a year earlier. This steady rise reflects growing confidence in hybrid strategies that combine the return potential of equities with the relative safety of debt instruments. The gradual expansion in folios indicates that more retail investors are viewing this category as a dependable long-term allocation.

Solid Performance Boosts Confidence

Aggressive hybrid funds—typically maintaining 65%-80% allocation to equities and the remainder in debt have delivered consistent performance across key time horizons. The category has generated average returns of about 7% over the last year, 16.5% over two years, and more than 17% over five years. This sustained performance has strengthened expectations that aggressive hybrid schemes can contribute meaningfully to long-term wealth creation.

Allocation Trends Shape Investment Strategy

Most schemes in the segment hold around 72% of their portfolios in equities and about 21% in fixed-income instruments, allowing scope for capital appreciation while preserving stability. A large portion of equity exposure—approximately 75% is invested in large-cap stocks. While this provides resilience during market volatility, it may not fully meet the needs of investors seeking broader diversification across mid-cap or small-cap segments.

Top Funds Drive Category Momentum

Schemes such as ICICI Prudential Equity & Debt Fund and Mahindra Manulife Aggressive Hybrid Fund have delivered standout results, outperforming benchmark returns across both two-year and five-year CAGR periods. Several other funds in the category have also logged strong double-digit gains, contributing to the overall positive sentiment.

Dividend Options Add to Investor Appeal

The availability of monthly dividend plans continues to draw investors looking for regular income, especially after the recent tax cuts. This feature has enhanced the category’s profile among those seeking a mix of steady payouts and long-term capital growth.

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