The asset-base of “aggressive hybrid mutual funds” has surged 12% to Rs 2.26 lakh crore in April 2025 as compared to the previous year, according to the data released by the Association of Mutual Funds in India (Amfi).

 These MFs have been gaining traction among investors amid continued volatility in capital markets. The investor-base expanded significantly, with the number of folios increasing by 3.5 lakh over the past year, to nearly 58 lakh by April 2025. 

This trend highlights the growing appeal of a balanced investment approach that combines growth and stability. Aggressive hybrid funds, an investment solution blending equity and debt exposures, delivered robust returns over different timeframes. On average, these funds have delivered returns of nearly 9% over the past year, 20% over two years, 15% over three years, and an impressive 21% over five years, the industry data showed. 

“These funds differ from other hybrid mutual funds primarily in the equity exposure, as they invest 65-80% in equities higher than the conservative or balanced hybrids that offer better return potential but also higher risk, making them ideal for investors with a moderate risk appetite and a 3-5 year view,” Trivesh D, COO Tradejini, said.  Looking ahead, the outlook for actively managed aggressive funds remains positive. Market movements are increasingly expected to be sector-specific and stock-specific rather than broad-based. As a result, fund managers with a dynamic and responsive approach will be better positioned to capture emerging opportunities.

“With the market expected to move more on sector-specific and stock-specific developments rather than broad-based rallies, fund managers with a dynamic approach will be better positioned to capture emerging opportunities,” Santosh Joseph, CEO, Germinate Investor Services, said.

There is a surge in retail interest in the category as investors seek balanced, tax-efficient products especially after Sebi’s F&O tightening, Trivesh said. Performance-wise, industry data shows that 31 aggressive hybrid mutual funds, on an average, delivered returns of close to 9% over the last one year.