The open-ended aggressive hybrid fund, which invests predominantly in equities and fixed income instruments, has demonstrated consistent performance across market cycles.
A lump sum investment of ₹1 lakh at inception would have grown to around ₹40.7 lakh, reflecting a CAGR of 15.11%, while three- and five-year CAGRs stood at 18.87% and 19.53%, respectively. Over the same periods, its benchmark, the CRISIL Hybrid 35+65 – Aggressive Index, delivered 11.75% and 14.12% CAGR.
Fund strategy and allocation
The fund typically allocates 65–80% to equities and 20–35% to fixed income securities. This hybrid structure enables investors to participate in equity market growth while benefiting from the relative stability and income provided by debt instruments.
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The fund’s allocation is dynamically adjusted based on market conditions, with equity exposure increasing when valuations are attractive and moderated during periods of heightened market risk.
As of February 28, 2026, the fund’s net equity exposure was around 76%, with a focus on large-cap stocks complemented by selective mid- and small-cap positions.
On the debt side, it invests in high-quality instruments rated AA and above, including corporate bonds and government securities, aiming for stable income while managing downside risk.
Investment approach
The fund combines top-down sector allocation—driven by macroeconomic trends, valuations, and growth potential—with bottom-up stock selection, focusing on fundamentally strong companies with sustainable earnings and reasonable valuations. This diversified approach has helped the fund consistently outperform its benchmark and generate attractive risk-adjusted returns across market cycles.
Sankaran Naren, ED & CIO, ICICI Prudential AMC, said, “Hybrid funds play an important role in helping investors navigate uncertain market conditions. By dynamically balancing equity and debt based on valuations, risk-reward, and macroeconomic signals, the fund has delivered consistent outcomes over time. This approach suits investors seeking long-term wealth creation while managing volatility.”
Suitability and caution
The fund is suited for investors looking for long-term wealth creation with relatively lower volatility than pure equity funds, and those seeking a single solution for balanced exposure to equity and debt. However, experts caution that past performance is not indicative of future returns, and investors should consider their risk tolerance, investment horizon, and portfolio diversification before committing to hybrid funds.
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First Published: Mar 12, 2026 7:02 AM IST
