Hybrid fund performance: Multi-asset allocation schemes lead 3-year SIP returns, balanced advantage lags

Hybrid fund performance: Multi-asset allocation schemes lead 3-year SIP returns, while balanced advantage lags. (AI-generated image)AI Quick ReadHybrid funds offer investors exposure to more than one asset class through a single mutual fund scheme. Depending on the category, these funds can invest across equity, debt, gold, silver, and other assets, with the allocation varying according to the fund’s mandate.

According to the latest AMFI data for July 2026, there are 186 schemes in the hybrid fund category. Among these, arbitrage funds have the highest number, with 39 schemes.

However, when hybrid funds are compared based on their three-year SIP returns, multi-asset allocation funds emerge as the strongest performers among the seven broad hybrid categories, based on Value Research data.

The top four funds in the three-year SIP return list are all from the multi-asset allocation fund category. As per AMFI data, there were 36 multi-asset allocation funds in July 2026.

Under Sebi’s categorisation framework, these funds must invest in at least three asset classes, with a minimum allocation of 10% to each asset class. These can include equity, debt, gold, silver, real estate investment trusts (REITs), and other permitted asset classes.

*Source: Value Research, Direct Plans, Returns as on 25 August 2026

Quant Multi Asset Allocation Fund topped the list with a three-year SIP return of 18.66%. It was followed by Nippon India Multi Asset Allocation Fund, which delivered 17.99%.

WhiteOak Capital Multi Asset Allocation Fund and Aditya Birla Sun Life Multi Asset Allocation Fund ranked third and fourth, with returns of 16.62% and 16.53%, respectively.

The concentration of multi-asset funds at the top of the table highlights how the category has performed relative to other broad hybrid categories over the three-year SIP period. However, past returns do not indicate how these funds will perform in the future.

At the other end of the list are funds from categories such as balanced advantage, aggressive hybrid, and conservative hybrid.

*Source: Value Research, Direct Plans, Returns as on 25 August 2026

Motilal Oswal Balanced Advantage Fund recorded the lowest three-year SIP return among the funds highlighted, at 2.29%. Shriram Balanced Advantage Fund followed at 2.81%.

The other two funds were HDFC Aggressive Hybrid Fund, with a three-year SIP return of 3.28%, and Sundaram Conservative Hybrid Fund, at 3.71%.

Two of the four funds with the lowest three-year SIP returns are balanced advantage funds, while the other two belong to the aggressive hybrid and conservative hybrid categories.

Balanced advantage funds dynamically manage their allocation between equity and debt based on the fund’s investment strategy, without a fixed equity-debt allocation range.