Aug 08, 2018 5 min read

Top 5 Balanced Funds to Choose Right Now

Read this blog to know about the top performing aggressive hybrid funds (previously known as balanced funds).
Aggressive Hybrid Mutual Funds (previously known as Balanced Funds) are considered as one of the best options during volatility in equity markets, and the reason behind is their capability to provide stable returns when other equity-oriented schemes are struggling to give returns in positive.

So, today, in this article, we are going to discuss what aggressive hybrid schemes are, and which are the 5 best balanced funds online, in which you can invest in 2018.

List of Top Aggressive Hybrid Mutual Funds:

  1. Reliance Equity Hybrid Fund (G)
  2. Aditya Birla Sun Life Equity Hybrid 95 Fund (G)
  3. ICICI Prudential Equity & Debt Fund (G)
  4. L&T Hybrid Equity Fund (G)
  5. SBI Equity Hybrid Fund (G)

What Are Balanced/Aggressive Hybrid Mutual Funds?

Aggressive Hybrid Funds are the type of mutual fund schemes that invest in a mix of equity and debt instruments. The allocation in equity instruments can range from 65%-80%, while the allocation in debt instruments can range from 20%-35%, depending on the behavior of the capital market. This diversification helps these funds in giving an optimal performance during variable market conditions. Now, we will see five aggressive hybrid funds that gave optimal performance in the past and are expected to follow the same trend in future.

top 5 funds

  1. Reliance Equity Hybrid Fund (G)
    This aggressive hybrid scheme was launched on Jun 08, 2005, and since then it has shown exceptional growth, which can be seen by its huge asset size of Rs 13,593 crores (as on Jun 30, 2018). Reliance Equity Hybrid Fund, at present, has major investments in finance, construction, automobile, metal, and energy sectors, all of which are the core sectors of the equity market and hold great potential for future growth.

    Fund Suitability: It is an ideal option for investors with an investment horizon of 5-10 years, as the scheme has a track record of providing better long-term returns.

  2. Aditya Birla Sun Life Equity Hybrid 95 Fund (G)
    This scheme is one of the best among aggressive hybrid schemes in terms of providing stable returns. Aditya Birla Sun Life Equity Hybrid 95 Fund, since its inception has provided an average annual return of 20.49% which is a record in itself in this respective category.

    Fund Suitability: It is meant for investors who want to start slow in the equity market, as the initial investment amount is just Rs 500.

  3. ICICI Prudential Equity & Debt Fund (G)
    This aggressive hybrid fund is one of the best and most trusted mutual fund schemes from ICICI Prudential Mutual Fund and its exceptional asset size of Rs 28,266 crores (as on Jun 30, 2018) is the witness to it. The portfolio of ICICI Prudential Equity & Debt Fund contains top equity players such as ICICI Bank (4.68%), NTPC (4.06%), State Bank of India (3.86%), ITC (3.69%), ONGC (3.41%). All the above stocks are from large-cap space and have a tendency to show stability even when the stock market is volatile.

    Fund Suitability: It is a great option for investors who have an investment horizon of more than 10 years and a moderate risk appetite.

  4. L&T Hybrid Equity Fund (G)
    This is one of the newest schemes in the aggressive hybrid category and despite that, it has managed to give a great competition to its peers. In just 7 years, it has managed to gather a total asset size of Rs 10,936 crores, which in itself is a great achievement. The expense ratio charged by L&T Hybrid Equity Fund is just 1.93% (as on Jul 31, 2018), which is the lowest as compared to its peers. The scheme invests in top stocks, irrespective of their sector and that can be seen by its equity portfolio which contains stocks from almost all equity sectors.

    Fund Suitability: It is a suitable choice for investors who are looking for good long-term returns and are ready to take a moderately high risk with their investments.

  5. SBI Equity Hybrid Fund (G)
    From the above table, you can see that this is the only scheme that has beaten the category w.r.t 1-year returns. It has shown the true power of aggressive hybrid schemes by providing 10% return in the current market volatility. At present, SBI Equity Hybrid Fund has around 27.05% investment in the finance sector, which is showing great scope for future growth, and as this sector will bloom, the scheme will start giving even better returns.

    Fund Stability: This scheme is an optimal pick for investors who are looking to invest in for a short-term as well as long-term, with moderate risk appetite.

Over the years, aggressive hybrid funds (balanced funds) have helped investors in building huge wealth in the long run, and the major factor responsible for that is the aggressive style of investing which they follow. With this style, these funds try to get the most out of equity market and that can be seen by the returns these schemes have provided in the long run. If you want more details on any of the above funds, then you can see the detailed analysis done by the experts of MySIPonline.

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