As 2024 moves near to close, investors and financial experts are reflecting on the year’s market trends and the performance of various investment strategies. Among the most sought-after options for diversified portfolios, hybrid funds have attracted considerable attention. These funds, which combine equities and fixed-income securities, provide a balanced approach to managing risk while pursuing growth.
As market conditions fluctuated throughout the year, hybrid funds offered investors a strategic way to navigate volatility and capitalise on opportunities across asset classes. In this article, we will delve into how hybrid funds performed in 2024.
| Fund Name | AUM (₹ Crore) | Absolute Return – 1Y (%) | 3Y CAGR (%) | Expense Ratio (%) |
| Bank of India Mid & Small Cap Equity & Debt Fund | 1,053.73 | 33.74 | 20.59 | 0.88 |
| HSBC Aggressive Hybrid Fund | 5,719.93 | 31.55 | 16.29 | 0.81 |
| Kotak Equity Hybrid Fund | 6,815.47 | 30.12 | 17.76 | 0.45 |
| Mahindra Manulife Aggressive Hybrid Fund | 1,502.95 | 29.80 | 18.74 | 0.48 |
| Baroda BNP Paribas Aggressive Hybrid Fund | 1,179.67 | 27.92 | 17.08 | 0.47 |
Note: The above funds have been selected based on 1 year absolute return and AUM has been selected at least ₹1,000 Crore. The returns are from December 11, 2023, to December 10, 2024.
Bank of India Mid & Small Cap Equity & Debt Fund is an open-ended equity scheme which invests between 65 to 80% in mid & small cap equities and the remaining in fixed-income securities. The objective of the scheme is to provide capital appreciation and income distribution to investors. As of December 10, 2024, the scheme’s NAV stood at ₹43.44.
HSBC Aggressive Hybrid Fun is an open-ended hybrid scheme investing predominantly in equity and equity-related instruments. HSBC Equity Hybrid Fund has merged into L&T Hybrid Equity Fund and the surviving scheme has been renamed. The investment objective of the scheme is to seek long-term capital growth and income through investments in equity and equity-related securities and fixed-income instruments.
Kotak Equity Hybrid Fund is an equity hybrid mutual fund designed to grow by investing in a mix of equity and equity-related instruments, while also generating income through investments in debt and money market instruments. This strategy aims to provide potential capital appreciation from equities along with stable returns from debt. However, there is no assurance that the fund will achieve its objectives.
Mahindra Manulife Aggressive Hybrid Fund is an open-ended hybrid scheme investing predominantly in equity and equity-related instruments. This scheme is suitable for investors who are seeking long-term capital appreciation and generation of income as well as Investment in equity and equity-related instruments and debt and money market instruments.
Baroda BNP Paribas Aggressive Hybrid Fund seeks to generate income and capital appreciation by investing in a diversified portfolio of equity and equity-related instruments and fixed-income instruments. However, there can be no assurance that the investment objectives of the Scheme will be realised.
The industry’s assets under management (AUM) first surpassed ₹10 trillion (₹10 lakh crore) in May 2014. Within a short span of about 3 years, the AUM more than doubled, crossing ₹20 trillion (₹20 lakh crore) in August 2017. The AUM reached ₹30 trillion (₹30 lakh crore) for the first time in November 2020. As of November 30, 2024, the industry’s AUM stands at ₹68.08 trillion (₹68.08 lakh crore).
However, overall mutual fund inflows in November 2024 saw a significant decline of about 75% compared to the previous month, totalling ₹60,363 crore, down from ₹2.39 lakh crore in October. Inflows into hybrid mutual funds fell by 76%, totalling ₹4,123 crore in November, compared to ₹16,863 crore in October. While inflows were seen in most hybrid fund categories, arbitrage and conservative hybrid funds were the exceptions.
2024 has proven to be a year of resilience for hybrid funds, with their balanced approach offering investors a shield against market volatility while still enabling growth. Hybrid funds have delivered steady returns, making them an attractive option for risk-conscious investors. As we look ahead to 2025, these funds remain a reliable choice for those seeking diversification and a more stable investment strategy. However, continued monitoring of market dynamics will be the key requirement for asset allocation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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