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Top Performing Hybrid Mutual Funds in 2025

Top Performing Hybrid Mutual Funds

The markets have experienced a tumultuous year, yet hybrid mutual funds have remained relatively steady. They are now the first choice among investors who are in search of the best of both worlds: the combination of the benefits of equity and debt, growth potential, and stability.

In this analogy, they are a nutritious meal for your portfolio, which can keep you going even when the market is full of surprises. In 2025, specific hybrid schemes stood out. Besides shielding your investment, they also produced gratifying returns.

Here are the best hybrid mutual funds to consider if you want to diversify and yet not take a full plunge into equity or debt.

1. Edelweiss Aggressive Hybrid Fund

1-Year Return: 17.7%
3-Year CAGR: 21.02%
5-Year CAGR: 23.64%
AUM: ₹2,612 crore
Expense Ratio: 0.39%
Minimum Investment: ₹100 (lump sum or SIP)

This fund is a go-to for investors seeking strong growth without putting all their eggs in the equity basket. Its low expense ratio and consistent track record make it especially appealing for young professionals and DIY investors alike. Read More.

2. Bank of India Mid & Small Cap Equity & Debt Fund

3-Year CAGR: 23.56%
AUM: ₹1,095.18 crore
Expense Ratio: 0.87%
Risk Rating: Very High

If you're open to a little more risk for potentially higher rewards, this fund brings a brilliant mix of mid and small-cap stocks, backed by the cushion of debt instruments. It's ideal for investors who have time on their side and a higher risk appetite. Read More.

3. Quant Multi Asset Fund

3-Year CAGR: 23.25%
AUM: ₹3,282 crore
Expense Ratio: 0.60%
Risk Rating: High

True to its name, the Quant Multi Asset Fund spreads your money across equity, debt, and even commodities like gold. This multi-asset allocation has enabled it to navigate volatile markets and achieve significant returns. Read More.

4. ICICI Prudential Equity & Debt Fund

3-Year CAGR: 24.15%
5-Year CAGR: 26.67%
AUM: ₹42,339.71 crore
Expense Ratio: 0.97%

This is one of India's top hybrid funds. It has gained investor trust by regularly beating its benchmarks. If you want to set long-term goals, such as buying a house or paying for your child's education, this is a great option to consider. Read More.

5. JM Aggressive Hybrid Fund

3-Year CAGR: 26.40%
5-Year CAGR: 28.29%
AUM: ₹801.98 crore
Expense Ratio: 0.01%

Don't let its small size fool you. This fund packs a punch. With an aggressive equity tilt, it's suitable for savvy investors who are comfortable riding market highs and lows in search of greater long-term returns. Read More.

Why Hybrid Funds Are Thriving in 2025

Even though major indices like the Nifty 50 and Sensex are still about 5% below their 52-week highs, many hybrid funds are hitting record NAVs. Why? Because their structure allows fund managers to pivot between equities and debt, they can adapt quickly to changing market conditions. Read More!

In a year marked by geopolitical tensions, global inflation concerns, and cautious domestic spending, hybrid funds have emerged as a haven for balanced growth. Their built-in diversification is doing precisely what it should.

Summary

Investing in the right fund is the way to go if you want to secure your future. You would need someone trustworthy, adaptable, and compatible with your speed. Hybrid mutual funds are just that in 2025.

In case you are just starting your investing journey or trying to optimize your long-term portfolio, hybrid funds can be of great help in that they restore the balance between risk and reward. They have not only survived the turbulent market but also have been the top-performing ones among their investors during the current year.

Ensure that your investment aligns with your own financial objectives and risk tolerance. Seek the opinion of a licensed consultant if you are uncertain, but don't delay too long. The best time to invest was yesterday. Content your nearby Mutual Fund Distributor for more Information

FAQs About Hybrid Mutual Fund

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