Best Aggressive Hybrid Mutual Funds to Invest in September 2026

What Are Aggressive Hybrid Mutual Funds?

Aggressive hybrid mutual funds combine equity and debt investments in a single portfolio. The equity allocation provides potential for long-term capital appreciation, while the debt component can provide some stability compared with a pure-equity portfolio.

These funds are generally considered suitable for investors who want substantial equity exposure but are not comfortable putting their entire investment into equity funds.

However, aggressive hybrid funds are still exposed to market fluctuations. Current fund data classifies the category as carrying very high risk, so investors should not consider these schemes equivalent to fixed-income products.

Best Aggressive Hybrid Mutual Funds to Watch in September 2026

Several aggressive hybrid funds have established sizeable portfolios and long-term track records.

Some of the schemes investors may consider for further research include:

Mutual Fund1-Year Return3-Year Return5-Year ReturnICICI Prudential Aggressive Hybrid Fund0.96%12.92%15.05%Quant Aggressive Hybrid Fund10.09%12.36%12.93%SBI Aggressive Hybrid Fund5.07%——Kotak Aggressive Hybrid Fund4.67%12.5%12.4%Nippon India Aggressive Hybrid Fund1.10%10.2%11.1%JM Aggressive Hybrid Fund0.59%12.6%13.3%Bank of India Aggressive Hybrid Fund15.81%16.85%15.01%HDFC Aggressive Hybrid Fund-3.90%6.07%8.36%

Returns shown are based on currently available September 2026 data and can change with market movements.

ICICI Prudential Aggressive Hybrid Fund

ICICI Prudential Aggressive Hybrid Fund is one of the prominent schemes in the category.

The fund had delivered around 12.92% annualised returns over three years and 15.05% over five years, according to currently available data. Its AUM was around Rs 52,433 crore in September 2026.

The scheme may appeal to investors looking for a diversified portfolio combining equity and fixed-income exposure.

However, the recent one-year return was only around 0.96%, demonstrating why investors should evaluate performance over multiple market cycles rather than relying on a single period.

Quant Aggressive Hybrid Fund

Quant Aggressive Hybrid Fund has also attracted attention because of its recent performance.

The fund delivered approximately 10.09% over one year, while its three-year annualised return stood at about 12.36% and its five-year annualised return at around 12.93%. Its AUM was approximately Rs 2,158 crore.

The fund's recent performance has been stronger than several peers, although investors should remember that short-term performance can change significantly with market conditions.

SBI Aggressive Hybrid Fund

SBI Aggressive Hybrid Fund is another established scheme investors may track.

The scheme seeks long-term capital appreciation while maintaining the liquidity associated with an open-ended mutual fund structure.

Its direct-growth version was showing a one-year return of around 5.07% in the latest available September 2026 data.

The fund's large fund-house presence and established track record may make it worth evaluating as part of a broader comparison.

Kotak Aggressive Hybrid Fund

Kotak Aggressive Hybrid Fund had delivered around 4.67% over one year, 12.5% annualised over three years and 12.4% over five years as of September 2026.

The fund had an AUM of approximately Rs 9,335 crore and an equity allocation of around 78% in the latest available data.

Its combination of equity exposure and debt allocation makes it another fund that investors can compare with other aggressive hybrid schemes.

Nippon India Aggressive Hybrid Fund

Nippon India Aggressive Hybrid Fund delivered around 1.10% over one year, 10.2% annualised over three years and 11.1% over five years.

The scheme had an AUM of approximately Rs 4,072 crore as of September 15, 2026. Its portfolio had around 74% allocated to equities and about 17% to debt in the latest available data.

The fund can be evaluated by investors looking for a relatively established aggressive hybrid option.

JM Aggressive Hybrid Fund

JM Aggressive Hybrid Fund recorded approximately 0.59% one-year returns, while its three-year annualised return was around 12.6% and its five-year return around 13.3%.

The scheme had an AUM of approximately Rs 700 crore and an equity allocation of around 75.5% in the latest available September data.

The smaller AUM compared with some of the category's larger funds is another factor investors may consider when comparing schemes.

Bank of India Aggressive Hybrid Fund

Bank of India Aggressive Hybrid Fund stood out for its recent return performance.

Its direct-growth plan delivered approximately 15.81% over one year, 16.85% annualised over three years and 15.01% over five years as of September 2026.

The scheme had an AUM of around Rs 2,051 crore. Its latest allocation was approximately 67.8% equities and 25.3% debt.

The fund's strong recent numbers make it one of the schemes investors may want to examine, although past performance should not be treated as a forecast.

HDFC Aggressive Hybrid Fund

HDFC Aggressive Hybrid Fund is another established option in the category.

The fund's one-year return was around -3.90% in the latest September 2026 data, while its three-year annualised return was around 6.07% and five-year return around 8.36%. Its AUM was approximately Rs 22,296 crore.

The recent numbers demonstrate that even aggressive hybrid funds can experience periods of weak or negative performance.

Why Consider Aggressive Hybrid Funds?

One of the key advantages of aggressive hybrid funds is diversification.

Instead of investing entirely in equities, investors receive exposure to both equity and debt within one scheme. This can potentially make the portfolio more resilient than a pure-equity investment during certain market conditions.

These funds can therefore be considered by investors seeking long-term growth but who want some debt exposure within the same investment.

However, they remain market-linked investments and can experience losses.

Are Aggressive Hybrid Funds Suitable for Conservative Investors?

Aggressive hybrid funds can be more suitable for investors who are relatively conservative compared with pure-equity investors but still want meaningful equity exposure.

They should not, however, be confused with low-risk investments.

The category can be affected by equity-market volatility, interest-rate movements and credit risks associated with the debt portion. A higher allocation to mid-cap and small-cap stocks can also increase volatility.

What Should Investors Check Before Investing?

Investors should not select an aggressive hybrid fund solely on the basis of its latest return.

Important factors to evaluate include:

• Long-term performance

• Performance consistency across market cycles

• Equity and debt allocation

• Portfolio quality

• Benchmark performance

• Expense ratio

• Risk-adjusted returns

• Fund manager's investment approach

• AUM and portfolio diversification

• Investment horizon

• Individual risk tolerance

Investors should also compare direct and regular plans and understand the tax implications before investing.

Should You Invest in Aggressive Hybrid Funds in September 2026?

Aggressive hybrid funds can be considered by investors with a long-term horizon who want substantial equity exposure along with debt allocation.

However, there is no single "best" aggressive hybrid fund for every investor. The right choice depends on the investor's objectives, risk tolerance and existing portfolio.

Investors should also avoid switching funds simply because another scheme has delivered higher returns over the past year.

Past Returns Are Not Guaranteed

The September 2026 data shows substantial differences between aggressive hybrid funds. Some schemes have generated double-digit annualised returns over three or five years, while others have struggled over the recent one-year period.

This highlights the importance of looking beyond headline returns.

Market conditions, portfolio positioning and changes in equity and debt valuations can all affect future performance.

Bottom Line

Aggressive hybrid mutual funds can offer a middle path between pure-equity funds and more conservative hybrid investments by combining significant equity exposure with debt.

In September 2026, ICICI Prudential Aggressive Hybrid Fund, Quant Aggressive Hybrid Fund, SBI Aggressive Hybrid Fund, Kotak Aggressive Hybrid Fund, Nippon India Aggressive Hybrid Fund, JM Aggressive Hybrid Fund, Bank of India Aggressive Hybrid Fund and HDFC Aggressive Hybrid Fund are among the schemes investors can compare.

Bank of India Aggressive Hybrid Fund has shown particularly strong recent returns, while ICICI Prudential Aggressive Hybrid Fund has a significantly larger AUM and a strong five-year return record. But investors should not treat these figures as a guarantee of future performance.

Before investing, investors should assess the fund's portfolio, risk, costs, long-term consistency and suitability for their financial goals.