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An analysis of 3-year performance of active hybrid funds across 5 categories shows that majority of aggressive hybrid funds, conservative hybrid funds and multi asset funds have beaten their respective benchmarks handsomely.
On the other hand, many balanced advantage funds or dynamic asset allocation did not live up to the expectation in terms of generating alpha.
Let us look at the report card of hybrid based on their3-year performance as on June 2023:
Aggressive Hybrid Funds
Our analysis shows that 68% of aggressive hybrid funds have outperformed their benchmark in the 3-year period ending on June 2023. However, the extent of outperformance ranges between 0.08% and 14.85%. Quant Absolute Fund, JM Hybrid Equity and ICICI Pru Equity and Debt Fund are the top three funds in terms of performance.
Balanced Advantage Funds
Of the total 20 BAFs, 35% or 7 dynamic asset allocation have beaten their benchmark. HDFC Balanced Advantage Fund, Baroda BNP Paribas Balanced Advantage Fund and Edelweiss Balanced Advantage are the top three funds in terms of performance. The outperformance ranges between 0.22% and 12.63%.
Equity Savings Funds
45%of the total schemes in this category have outperformed its benchmark. Of the 22 schemes, 10 schemes have beaten their benchmarks in the range of 0.15% and 3.29%. In fact, HSBC Equity Savings Fund has outperformed its benchmark by a margin of 3.29%. Mirae Asset Equity Savings Fund and HDFC Equity Savings Fund are the two other schemes in this category with healthy outperformance of over 2.50%.
Multi Asset Funds
4 out of 7 multi asset funds have beaten their benchmark. The outperformance ranges between 0.74% and 16.25% for three-year period. Quant Multi Asset Fund has generated close to 16% additional returns over its benchmark in 3-year period. ICICI Prudential Multi Asset Fund has generated close to 9% additional returns over its benchmark.
Conservative Hybrid Funds
72% conservative hybrid funds have generated excess returns than their benchmark. Bank of India Conservative Hybrid Fund, Aditya Birla Sun Life Regular Savings Fund and HDFC Hybrid Debt Fund are the top three funds in the category with highest outperformance. The outperformance ranges between 5% and 7%.
|
Fund categories |
% of schemes outperforming benchmark |
|
Conservative |
72% |
|
Aggressive hybrid |
68% |
|
Multi Assets |
57% |
|
Equity Savings |
45% |
|
BAF |
35% |
Click here to see the complete list of funds. Outperformers marked in yellow.
