Hybrid mutual funds are often seen as a “balance” between equity and debt. But in some market cycles, many hybrid and multi-asset funds can deliver very strong returns—sometimes close to pure equity funds.
In this blog, you’ll find 8 high-return hybrid mutual funds that delivered over 20% CAGR in the last 5 years, along with their 5-year absolute returns and what ₹1 lakh would have turned into.
What Are Hybrid Mutual Funds?
Hybrid funds invest in more than one asset class, usually:
- Equity (growth potential)
- Debt (stability)
- Sometimes gold/other assets (in multi-asset funds)
This mix can reduce risk compared to 100% equity (depending on category), while still giving good long-term growth potential.
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List of 8 High Return Hybrid Mutual Funds with Over 20% CAGR in the Last 5 Years
| Fund Name | 5-Year CAGR (%) | 5-Year Absolute Return | ₹1 Lakh Would Have Turned Into |
|---|---|---|---|
| SBI Magnum Children’s Benefit Fund – Investment Plan | 33.2 | 319.3% | ₹4,19,296 |
| Quant Multi Asset Allocation Fund | 27.2 | 233.0% | ₹3,32,993 |
| ICICI Prudential Equity & Debt Fund | 23.4 | 186.1% | ₹2,86,138 |
| ICICI Prudential Multi Asset Fund | 23.3 | 185.0% | ₹2,84,981 |
| HDFC Balanced Advantage Fund | 21.3 | 162.6% | ₹2,62,606 |
| Bank of India Mid & Small Cap Equity & Debt Fund | 21.2 | 161.5% | ₹2,61,525 |
| Quant Aggressive Hybrid Fund | 20.7 | 156.2% | ₹2,56,175 |
| ICICI Prudential Retirement Fund – Hybrid Aggressive Plan | 20.2 | 150.9% | ₹2,50,913 |
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Deep Dive into 8 High Return Hybrid Mutual Funds
1) SBI Magnum Children’s Benefit Fund – Investment Plan
This fund has delivered the highest 5-year CAGR in your list, turning ₹1 lakh into about ₹4.19 lakh in five years. It may suit goal-based investors planning for long-term child-related goals (like education), but investors should still check risk level, equity allocation, and whether the “children’s” label matches their time horizon and goal discipline.
Performance Summary
- 3-Year CAGR: 24.0%
- 5-Year CAGR: 33.2%
- 10-Year CAGR: Not applicable
2) Quant Multi Asset Allocation Fund
Multi-asset funds usually spread money across equity, debt, and one or more additional asset classes. If diversification across asset classes is the goal (not just equity vs debt), multi-asset strategies can help reduce dependence on a single market segment.
Performance Summary
- 3-Year CAGR: 21.4%
- 5-Year CAGR: 27.2%
- 10-Year CAGR: 18.7%
3) ICICI Prudential Equity & Debt Fund
This is a classic hybrid style—equity + debt—often used for investors who want growth but also want a debt cushion. These funds can work well for medium-to-long-term investors who don’t want 100% equity exposure.
Performance Summary
- 3-Year CAGR: 19.3%
- 5-Year CAGR: 23.4%
- 10-Year CAGR: 17.2%
4) ICICI Prudential Multi Asset Fund
Similar to other multi-asset options, this category aims to diversify beyond only equity and debt. Multi-asset funds are often considered when an investor wants equity participation plus a stabilizer (like debt and/or gold).
Performance Summary
- 3-Year CAGR: 19.7%
- 5-Year CAGR: 23.3%
- 10-Year CAGR: 17.1%
5) HDFC Balanced Advantage Fund
Balanced advantage funds (also called dynamic asset allocation funds) typically change equity exposure based on valuations/market conditions. These funds are often chosen by investors who want a “rules-based” or “strategy-driven” approach to managing equity allocation over time.
Performance Summary
- 3-Year CAGR: 18.1%
- 5-Year CAGR: 21.3%
- 10-Year CAGR: 15.3%
6) Bank of India Mid & Small Cap Equity & Debt Fund
Mid and small-cap exposure can boost returns when that segment performs well, but it can also increase volatility. If considering such funds, it helps to have a longer horizon and the ability to tolerate short-term drawdowns.
Performance Summary
- 3-Year CAGR: 18.4%
- 5-Year CAGR: 21.2%
- 10-Year CAGR: Not applicable
7) Quant Aggressive Hybrid Fund
Aggressive hybrid funds generally hold a high equity allocation (often around 65%–80%), with the rest in debt. This can behave closer to an equity fund in market corrections, so it’s best for investors who can stay invested through volatility.
Performance Summary
- 3-Year CAGR: 12.2%
- 5-Year CAGR: 20.7%
- 10-Year CAGR: 16.7%
8) ICICI Prudential Retirement Fund – Hybrid Aggressive Plan
Retirement-oriented funds are typically designed for long-term investing discipline. Even if returns look strong historically, investors should also review lock-in rules (if any), exit load structure, and whether it fits the retirement timeline.
Performance Summary
- 3-Year CAGR: 21.3%
- 5-Year CAGR: 20.2%
- 10-Year CAGR: Not applicable
How to Choose a High Return Hybrid Fund
Before investing based only on high past returns, check:
- Asset allocation (equity %, debt %, gold/others)
- Risk level (riskometer) and how often it changes
- Expense ratio and exit load
- Portfolio concentration (too many bets in one theme/sector can be risky)
- Your time horizon (hybrid funds still need time for good results)
Conclusion
These 8 funds show that hybrid and multi-asset mutual funds can deliver strong long-term performance in the right market cycle. However, the best approach is to use this list as a shortlist—not a final decision—because future returns will depend on market conditions and fund strategy.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing.
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FAQs: High Return Hybrid Mutual Funds
1) Are hybrid mutual funds safe?
Hybrid funds are generally less volatile than pure equity (depending on category), but they are not risk-free because they still have market exposure.
2) Can hybrid funds give 20%+ returns every year?
No. A 5-year CAGR above 20% is strong, but returns change with market cycles, fund strategy, and asset allocation.
3) What is better: hybrid funds or equity funds?
Equity funds can offer higher long-term returns but are usually more volatile. Hybrid funds try to balance return potential with stability.
4) Should beginners invest in aggressive hybrid funds?
Beginners can consider them if they can handle equity-like volatility and stay invested for 5+ years. Otherwise, balanced advantage or multi-asset funds may feel more comfortable.
5) Is it okay to invest based on CAGR alone?
No. CAGR is useful, but it should be checked along with risk, portfolio quality, expense ratio, and whether the fund suits your financial goal.
