Today, we challenge the widespread belief among investors that the best fund to invest in is the one with the highest return. And we do that by focusing on a segment of mutual funds that is gaining popularity, fast. Hybrid Funds.
Aggressive hybrid funds drive long-term wealth by pairing high-growth equity with a stabilizing debt cushion. This strategy captures market upside while mitigating volatility, consistently delivering double-digit returns for disciplined investors.
Here is an analysis of the top 5 aggressive hybrid funds: ICICI Prudential Equity & Debt Fund – Direct Plan – Growth, Quant Aggressive Hybrid Fund – Direct Plan – Growth, Mirae Asset Aggressive Hybrid Fund – Direct Plan – Growth, Kotak Aggressive Hybrid Fund – Direct Plan – Growth, and Edelweiss Aggressive Hybrid Fund – Direct Plan – Growth.
This analysis ranks the category’s top five performers by 10-year compounded annual growth rate (CAGR).
What are Aggressive Hybrid Funds?
Aggressive hybrid funds are defined by their mandate to invest between 65% and 80% of their total assets in equity and equity-related instruments, while the remaining 20 to 35% is allocated to debt and money market securities. This specific asset distribution ensures that the fund qualifies for equity taxation status in India, which is beneficial for long-term holders.
The primary objective is to harness the growth potential of the stock market while utilizing the debt portion as a cushion to mitigate volatility during bearish phases. By balancing these two asset classes, the funds aim to provide a more stable experience than pure equity schemes without sacrificing significant upside potential.
ICICI Prudential Equity & Debt Fund – Direct Growth
ICICI Prudential Equity & Debt Fund leads the pack with a 10-year CAGR of 18.1%. The three-year and five-year CAGRs both stand at 20.3%, well above category averages. The one-year return is 14.96%.
The NAV is Rs 459.65 as of 10 Feb 2026, and AUM is Rs 49,256.66 crore.
Key metrics to watch
The expense ratio is 0.92%, the highest among the five funds we are covering today. A higher expense ratio means a larger portion of returns goes towards fund management costs. The exit load is 1% for redemptions within 365 days for units in excess of 30% of the investment.
The Sharpe ratio is 1.36, the highest in this list. A higher Sharpe ratio indicates better risk-adjusted returns, meaning the fund has delivered stronger returns for the level of risk taken. The Sortino ratio is 2.15.
Portfolio turnover stands at 29.87%, the lowest among peers, indicating a relatively stable portfolio approach.
Allocation pattern
Asset allocation is equity 74.52%, debt 19.87%, real estate 2.22% and cash 3.04%. Within equity, financials account for 26.12%, energy and utilities 18.59%.
Debt exposure includes financials 30.07%, sovereign 27.45%.
Top 10 equities holdings
| Equity Holding | Percentage |
| ICICI Bank | 6.24% |
| NTPC | 5.41% |
| Reliance Industries | 5.37% |
| HDFC Bank | 4.84% |
| Sun Pharmaceutical | 4.59% |
| Axis Bank | 3.19% |
| TVS Motor | 2.97% |
| Avenue Supermarts | 2.41% |
| Interglobe Aviation | 2.37% |
| Maruti Suzuki | 2.30% |
Quant Aggressive Hybrid Fund – Direct Growth
Quant Aggressive Hybrid Fund has delivered a 10-year CAGR of 17.0%. The 5-year return is 17.8%, and the 3-year return is 15.0%, both above category averages. The 1-year return is 4.83%. NAV is Rs 469.09, and AUM is Rs 1,957.98 crore.
Key metrics
The expense ratio is 0.81%. The exit load is 1% if redeemed within 15 days. The Sharpe ratio is 0.54, the lowest among the five funds. A lower Sharpe ratio suggests comparatively lower risk-adjusted returns. Portfolio turnover is 90.53%, indicating active portfolio changes.
Allocation pattern
Asset allocation is equity 72.65%, debt 28.62%, real estate 1.9% and cash minus 3.16%. Equity sector exposure includes financials 29.46%, energy and utilities 13.20%, industrials 7.97%, materials 4.82% and healthcare 3.44%.
Debt holdings include RBI T-Bills (5.09%), SIDBI CD (4.83%), Maharashtra State SDL (2.52%), RBI T-Bills (2.36%) and GOI Sec 5.74% (2.25%). No listed small-cap allocation is available in its portfolio aggregates.
Top 10 equities holdings
| Equity Holding | Percentage |
| HDFC Bank | 8.30% |
| Larsen & Toubro | 7.97% |
| Larsen & Toubro | 7.80% |
| JIO Financial Services | 7.43% |
| Adani Power | 7.27% |
| Bajaj Auto | 7.02% |
| Adani Green Energy | 6.65% |
| Adani Green Energy | 5.92% |
| Britannia Industries | 6.41% |
| ICICI Bank | 6.16% |
Kotak Aggressive Hybrid Fund – Direct Growth
Kotak Aggressive Hybrid Fund has delivered a 10-year CAGR of 15.9%. The three-year return is 17.1% and the five-year return is 15.4%. The one-year return is 7.08%. NAV is Rs 76.20 and AUM is Rs 8,431.47 crore.
Key metrics
The expense ratio is 0.47%. The exit load is 1% for units in excess of 8% redeemed within 365 days. The Sharpe ratio is 0.92 and portfolio turnover is 67.53%.
Allocation pattern
Asset allocation is equity 79.13%, debt 16.21%, real estate 0.31% and cash 4.36%. Sector exposure includes financials 26.57%, technology 16.18%, materials 10.07%, industrials 8.45%, and healthcare 6.49%.
Top 10 equities holdings
| Equity Holding | Percentage |
| HDFC Bank | 4.53% |
| HDFC Bank | 4.29% |
| GE Vernova T&D | 3.38% |
| GE Vernova T&D | 3.52% |
| Fortis Healthcare | 3.23% |
| SBI | 3.07% |
| Eternal | 3.03% |
| Cholamandalam Investment | 2.84% |
| Bajaj Finance | 2.75% |
| Ultratech Cement | 2.71% |
Mirae Asset Aggressive Hybrid Fund – Direct Growth
Mirae Asset Aggressive Hybrid Fund has delivered a 10-year CAGR of 15.6%. The three-year return is 16.3% and the five-year return is 13.6%, slightly below the category average of 13.9% for five years. The one-year return is 6.99%. NAV is Rs 39.64 and AUM is Rs 9,537.61 crore.
Key metrics
The expense ratio is 0.39%. The exit load is 1% for units in excess of 15% redeemed within 365 days. The Sharpe ratio is 0.91 and portfolio turnover is 116%.
Allocation pattern
Sector exposure includes financials 22.87%, technology 10.15%, industrials 8.64%, energy and utilities 8.09%, consumer discretionary 6.71%, materials 5.99%, healthcare 5.73%, consumer staples 4.39% and real estate 0.52%.
Top 10 equities holdings
| Equity Holding | Percentage |
| HDFC Bank | 7.05% |
| SBI | 4.44% |
| ICICI Bank | 4.24% |
| Axis Bank | 3.06% |
| Reliance Industries | 3.01% |
| Larsen & Toubro | 2.53% |
| Bharti Airtel | 2.37% |
| Infosys | 2.29% |
| NTPC | 2.19% |
| Tata Consultancy Services | 1.73% |
Edelweiss Aggressive Hybrid Fund – Direct Growth
Edelweiss Aggressive Hybrid Fund has delivered a 10-year CAGR of 15.3%. The three-year return is 18.7% and the five-year return is 16.9%, both above category averages. The one-year return is 11.68%. NAV is Rs 75.53 and AUM is Rs 3,453.04 crore.
Key metrics
The expense ratio is 0.36%, the lowest among the five funds. A lower expense ratio means investors retain a larger share of the fund’s gross returns. The exit load is 1% for redemption within 90 days for units in excess of 10% of the investment.
The Sharpe ratio is 1.11, second only to ICICI Prudential in this group, indicating relatively strong risk-adjusted returns. Portfolio turnover ranges between 132% and 132.41%, the highest among peers, indicating frequent portfolio churn.
Allocation pattern
Asset allocation is equity 77.53%, debt 23.57% and cash minus 1.1%. Equity sector exposure includes financials 32.31%, technology 15.40%, healthcare 11.19%, consumer discretionary 10.50%, energy and utilities 9.89%.
Top 10 equities holdings
| Equity Holding | Percentage |
| ICICI Bank | 4.85% |
| HDFC Bank | 4.34% |
| SBI | 3.95% |
| Bharti Airtel | 3.33% |
| Infosys | 2.69% |
| Reliance Industries | 2.62% |
| NTPC | 2.58% |
| Biocon | 1.71% |
| Mahindra & Mahindra | 1.59% |
| Sun Pharmaceutical | 1.58% |
Investors’ takeaway
All five funds have outperformed the aggressive hybrid category average over 10 years.
ICICI Prudential leads on long-term returns and risk-adjusted performance but carries the highest expense ratio. Edelweiss combines the lowest cost with strong Sharpe performance. Mirae Asset and Edelweiss have the highest small-cap exposure, while ICICI Prudential has the lowest portfolio turnover. Quant shows higher churn and the lowest Sharpe ratio among peers.
Investors should weigh return consistency, cost structure, portfolio concentration, turnover levels and small-cap exposure before choosing a scheme aligned with their risk profile and time horizon.
Disclaimer: The above content is for informational purposes only. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.