INCOME TAX18 Sept 2026
Large-cap or aggressive hybrid? The mutual fund category that leads in returns may surprise you | Mint
A fresh category comparison shows aggressive hybrid funds beat large-cap funds on 1, 3, 5 and 7-year average returns, while 10-year returns stayed almost identical. If you invest in mutual funds, this matters: hybrids mix 65–80% equity with debt, and their Sharpe ratio of 0.57 beat large-cap's 0.44. Compare risk-adjusted returns, not one-year numbers, before you switch categories.
Key Statutory Highlights
- Aggressive hybrid funds invest 65–80% of total assets in equity and 20–35% in debt, while large-cap funds must invest at least 80% in large-cap stocks.
- Aggressive hybrid funds recorded higher category-average returns across the 1, 3, 5 and 7-year periods, but 10-year returns were almost the same.
- The category-level Sharpe ratio was 0.57 for aggressive hybrid funds against 0.44 for large-cap funds, showing better risk-adjusted performance.
Actionable Advice for Taxpayers / Founders:Review the risk-adjusted returns and Sharpe ratio of your own holdings with your adviser before shifting money between aggressive hybrid and large-cap categories, since past category averages do not guarantee future results.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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