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An analysis of the 3-year performance of hybrid funds ending on December 2023 reveals majority of hybrid funds have outperformed their respective benchmarks.
Our analysis shows that outperformance is more prevalent in hybrid categories like conservative hybrid funds and aggressive hybrid funds. Both these fund categories saw 70% of their total schemes beating their respective benchmarks in 3-year period.
Let's look at the 3-year report of hybrid fund category for the period ending on December 2023:
Aggressive Hybrid Funds
Outperformance Rate: 68%
Alpha Range: 0.04% to 12.44%
Top Performers:
Our analysis shows that 21 out of 31 schemes in the aggressive hybrid category have outperformed their benchmark. ICICI Prudential Equity & Debt Fund, Quant Absolute Fund and JM Aggressive Hybrid Fund are the top three funds in this category with the highest alpha.
Balanced Advantage Funds
Outperformance Rate: 55%
Alpha Range: 0.22% to 14.35%
Top Performers:
Of the total 20 schemes in balanced advantage funds, 11 schemes have beaten their benchmark for 3-year period. HDFC Balanced Advantage Fund, Bank of India Balanced Advantage Fund and Baroda BNP Paribas Balanced Advantage Fund are the top performers in this space. Interestingly, HDFC Balanced Advantage Fund has generated alpha of over 14% in three-year period.
Equity Savings Funds
Outperformance Rate: 41%
Alpha Range: 0.19% to 2.52%
Top Performers:
Close to 41% of the total equity savings funds have outperformed their benchmark in 3-year period. HDFC Equity Savings Fund, UTI Equity Savings Fund and HSBC Equity Savings Fund are the top three funds with the highest outperformance.
Conservative Hybrid Funds
Outperformance Rate: 72%
Alpha Range: 0.09% to 6.81%
Top Performers:
Over 70% of the conservative hybrid funds have outperformed their benchmark in 3-year period. The top three performers are Bank of India Conservative Hybrid Fund which outperformed its benchmark by a margin of 6.81%, HDFC Hybrid Debt Fund outperformed its benchmark by a margin of 4.44% and Kotak Debt Hybrid Fund outperformed its benchmark by a margin of 3.72%.
Multi-Asset Allocation Funds
Outperformance Rate: 50%
Alpha Range: 0.07%
Top Performers:
Out of 2 schemes completing three years, only UTI Multi Asset Allocation Fund has managed to beat its benchmark with a margin of 0.07%.
Arbitrage Funds (Please note that we have taken 1-year performance of arbitrage funds)
Underperformance Alpha Range: -0.53% to -2.16%
Top Performers:
Not a single arbitrage fund managed to beat its benchmark. SBI Arbitrage Opportunities Fund, Kotak Equity Arbitrage Fund and Invesco India Arbitrage Fund are the top three funds with least underperformance in this category.
Click here to see the complete list of hybrid funds. Outperformers are marked in yellow.
