Before investing in a mutual fund scheme, investors are expected to weigh several pros and cons. Among several factors that go into deciding which scheme should be invested into, returns given by a scheme is one key factor that investors consider.
Here we zero in on the top-performing hybrid mutual funds of this year. But at the outset let us describe what exactly are hybrid mutual funds. These are mutual fund schemes which invest their assets into a mix of both equity and debt. Although there are seven sub-categories of hybrid funds, we have hand-picked three out of them to select best performing schemes:
Dynamic asset allocation
These are mutual funds where investment in equity and debt is managed dynamically (between 0 to 100 percent in equity & equity related instruments and 0 to 100 percent in debt instruments) based on market movement and other factors.
Some of the dynamic asset allocation funds (also known as balanced advantage funds) which delivered highest return in the past one year include:
| Top performing dynamic asset allocation funds | 1-year-returns (%) |
| HDFC Balanced Advantage Fund | 30.37 |
| Motilal Oswal Balance Advantage Fund | 25.63 |
| NJ Balanced Advantage Fund | 22.55 |
(Source: AMFI; Returns as on Dec 22, 2023)
Multi asset allocation funds
Multi asset allocation funds are the schemes which make investment in at least three asset classes with a minimum allocation of at least 10 percent in each asset class.
Some of the schemes in this category which gave maximum return in the past one year include the following:
| Top performing multi asset allocation funds | 1-year-returns (%) |
| UTI Multi Asset Allocation Fund | 27.95 |
| ICICI Prudential Multi Asset Fund | 23.35 |
| SBI Multi Asset Allocation Fund | 22.76 |
(Source: AMFI; Returns as on Dec 22, 2023)
Equity Savings Fund
Equity savings funds refer to mutual funds which have a minimum allocation of 65 percent in equity, 10 percent in debt instruments, and in derivatives (minimum for hedging to be specified in the scheme information document).
Some of the schemes in this category which gave maximum return in the past one year include.
| Top performing equity Savings Funds | 1-year-returns (%) |
| SBI Equity Savings Fund | 17.83 |
| HSBC Equity Savings Fund | 17.41 |
| UTI Equity Savings Fund | 14.92 |
| Sundaram Equity Savings Fund | 14.90 |
(Source: AMFI; Returns as on Dec 22, 2023)
However, it is vital to understand that the scheme’s historical returns — albeit set the tone — are in no way, stand testimony to the scheme’s future performance.
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Published: 26 Dec 2023, 09:41 AM IST