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An analysis done by Cafemutual on 3-year performance of hybrid fund categories ending in March 2024 shows that most hybrid funds outperformed their respective benchmarks.
The analysis shows that outperformance is more prevalent in aggressive hybrid funds and conservative hybrid funds in the 3-year period.
Let's look at the 3-year report of the hybrid fund category for the period ending on March 2024:
Aggressive Hybrid Funds
Our analysis shows that 18 out of 30 schemes in the aggressive hybrid category 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.
Outperformance Rate: 60%
Alpha Range: 25.14% to 14.30%
Balanced Advantage Funds
Of the total 21 schemes, 12 schemes in balanced advantage funds beat their benchmark. HDFC Balanced Advantage, Bank of India Balanced Advantage Fund and Baroda BNP Paribas Balanced Advantage Fund are the top performers in this space.
Outperformance Rate: 57%
Alpha Range: 13.05% to 0.23%
Equity Savings Funds
41% of the total equity savings funds have outperformed their benchmark in 3-year period. Kotak Equity Savings Fund, HDFC Equity Savings Fund and HSBC Equity Savings Fund are the top three funds in this category.
Outperformance Rate: 41%
Alpha Range: 2.41% to 0.01%
Conservative Hybrid Funds
Top performing funds
Of the total 18 funds, 13 funds or 72% 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 7.24%. Similarly, HDFC Hybrid Debt Fund generated alpha of 3.99% whereas Kotak Debt Hybrid Fund outperformed its benchmark by of 3.39%.
Outperformance Rate: 72%
Alpha Range: 7.24% to 0.11%
Multi-Asset Allocation Funds
Only 2 schemes completed three years and managed to beat its benchmark in this category. UTI Multi Asset Allocation Fund and HDFC Multi Asset Fund have beaten their benchmark and generated alpha of 2.41% and 0.70%, respectively.
Outperformance Rate: 100%
Alpha Range: 2.41% and 0.70%
Arbitrage Funds
No arbitrage fund was able to outperform its benchmark. The top three funds with the least underperformance were Kotak Equity Arbitrage Fund, SBI Arbitrage Opportunities Fund and Edelweiss Arbitrage Fund.
Underperformance Alpha Range: -0.37% to –2.16%
Click here to see the complete list of hybrid funds. Outperformers are marked in yellow.
