Aggressive hybrid funds are a category of mutual funds that combine investments in both stocks and debt instruments, with a predominant focus on equity. Specifically, these funds allocate 65% to 80% of their assets to equity and equity-related securities, while the remaining 20% to 35% is invested in debt and money market instruments. This strategy aims to balance growth potential with relative stability.
In this article, we will discuss an aggressive hybrid fund from the Bank of India Mutual Fund that has provided investors with about 30% annualized returns over the last five years. This fund is the Bank of India Mid & Small Cap Equity & Debt Fund – Direct Plan.
Bank of India Aggressive Hybrid Fund delivers impressive returns
The Bank of India Mid & Small Cap Equity & Debt Fund – Direct Plan has made headlines with its robust performance. The fund has excelled over 3, 5, and 7-year time horizons, offering annual returns of up to 30% over the past five years. This aggressive hybrid fund allocates 65-80% of its assets to equity stocks and the remaining 20-35% to bonds, demonstrating its potential to generate significant returns. For investors, a monthly SIP of Rs 10,000 has grown to approximately Rs 13 lakh over five years.
Key features of the fund:
Fund Type: Aggressive Hybrid
3-Year Return: 21.24%
5-Year Return: 29.71%
7-Year Return: 18.44%
NAV: Rs 42.13
Expense Ratio: 1.13% (as of July 31, 2024)
Minimum Investment: Rs 5,000
Minimum SIP Investment: Rs 1,000
Fund House: Bank of India Mutual Fund
Launch Date: July 20, 2016
Return Since Launch: 19.49%
Benchmark: NIFTY Mid Small Cap 400 TRI (70%), CRISIL Short-Term Bond Index (30%)
Risk Level: Very High
Assets Under Management: Rs 921 crore (as of July 31, 2024)
In conclusion, Bank of India Mid & Small Cap Equity & Debt Fund – Direct Plan has proven to be a strong performer with its high returns and dynamic asset allocation. Its aggressive hybrid approach offers a blend of equity growth and bond stability, making it a compelling choice for investors seeking substantial returns and are comfortable with high risk.
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