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An analysis done by Cafemutual on the 3-year performance of hybrid funds ending in June 2024 shows that majority of hybrid funds have outperformed their respective benchmarks across categories.
In fact, over 50% schemes in 4 hybrid fund categories have delivered alpha in 3 years.
Let's look at the 3-year report card to know more:
Aggressive hybrid funds
19 out of 30 schemes in the aggressive hybrid category outperformed their benchmark. JM Aggressive Hybrid Fund, ICICI Prudential Equity & Debt Fund and Quant Absolute Fund were the top three funds in this category with the highest alpha of 10.43%, 10.09% and 5.97%, respectively.
Outperformance Rate: 60%
Alpha Range: 10.43% to 0.13%
Balanced advantage funds
Out of total of 21 schemes, 13 balanced advantage funds beat their benchmarks. The top performers in this segment were HDFC Balanced Advantage, Bank of India Balanced Advantage Fund and Baroda BNP Paribas Balanced Advantage Fund.
Outperformance Rate: 62%
Alpha Range: 13.12% to 0.19%
Equity savings funds
55% of the total equity savings funds outperformed their benchmark in 3-year period. HSBC Equity Savings Fund (alpha of 3.45%), Kotak Equity Savings Fund (2.61%) and Sundaram Equity Savings Fund (1.54%) did well in this category.
Outperformance Rate: 55%
Alpha Range: 3.45% to 0.03%
Conservative hybrid funds
Of the total 19 funds, 13 funds or 68% of the conservative hybrid funds generated excess returns over their benchmarks in 3-year period. The top three performers in this category were Bank of India Conservative Hybrid Fund (outperformance of 6.76%), Parag Parikh Conservative Hybrid Fund ( 3.60%) and SBI Conservative Hybrid Fund (3.46%).
Outperformance Rate: 68%
Alpha Range: 6.76% to 0.25%
Multi asset allocation funds
Only 2 schemes completed three years in this category and both of them beat their benchmark. UTI Multi Asset Allocation Fund generated alpha of 2.63% while HDFC Multi Asset Fund did marginally well over its benchmark.
Outperformance Rate: 100%
Alpha Range: 2.63% and 0.14%
Arbitrage funds
Only three out of 24 arbitrage funds outperformed the benchmark. The top three funds were Invesco India Arbitrage Fund with outperformance of 0.11%, SBI Arbitrage Opportunities Fund with 0.09% and Kotak Equity Arbitrage Fund with 0.05%.
Outperformance Alpha Range: 0.11% to 0.05%
Click here to see the complete list of hybrid funds. Outperformers are marked in yellow.
