Bandhan Aggressive Hybrid: A top performing all weather fund in current market conditions
Current market scenario
Though the market reclaimed its previous high, we are seeing profit booking at higher levels. Continuing FII sell-off and uncertainty about tariffs are headwinds from the market, though GDP growth beating expectations indicate strong macros. Geo-political uncertainty has plagued the market for more than a year now. Asset allocation balancing risks and returns plays an important role in reducing volatility and providing stability to your portfolio. Hybrid mutual funds provide a spectrum of asset allocation solution, depending on your risk appetite and investment needs. In this article we will review Bandhan Aggressive Hybrid Fund, which is one of the top performing aggressive hybrid funds.
What are Aggressive Hybrid Funds?
As per SEBI's regulations, aggressive hybrid funds must invest between 65 - 80% in equity and 20 - 35% in fixed income. These funds have the potential of capturing the market upside more than hybrid funds with lower net equity exposure. At the same aggressive hybrid funds are less volatile than pure equity fund. Aggressive hybrid funds enjoy equity taxation. The debt allocation helps cushion downside volatility during equity market corrections which improves risk-adjusted returns compared to a fully equity-oriented portfolio. An equity-debt portfolio strikes a good balance between growth and stability, making it suitable for long-term investors who want higher return potential than conservative portfolios, without taking the full volatility of 100% equity exposure.
About Bandhan Aggressive Hybrid Fund
The fund was launched in December 2016 and has Rs 1,576 crores of assets under management as on 31-Dec-25. The fund seeks to provide both relative stability of returns via debt investment and potential of growth via equity investment. Both equity and fixed income portions are actively managed. Equity follows a well-diversified, multi cap strategy and debt follows a high-quality medium to long-duration strategy.
Bandhan Aggressive Hybrid Fund outperformed peer average
The fund outperformed the category average returns over different investment periods (see the charts below).
Source: Advisorkhoj Research, as on 31st December 2025
Consistently outperformed peer average across market conditions
The chart below shows the 3 year rolling returns of Bandhan Aggressive Hybrid Fund versus the category average returns since the inception of the fund. You can see that Bandhan Aggressive Hybrid Fund consistently beat the category average returns across different market conditions.
Source: Advisorkhoj Research, as on 31st December 2025
Superior risk return trade-off compared to peers
The table below shows the rolling returns distribution of Bandhan Aggressive Hybrid Fund versus the category average for different investment tenures since the inception of the fund. You can see that the fund has lesser percentage instances of negative returns and higher percentage instances of 12%+ CAGR returns – indicates superior risk / return trade off for investors.
Source: Advisorkhoj Research, as on 31st December 2025
Limited downside risks for investors
The table below shows the major market corrections since the launch of Bandhan Aggressive Hybrid Fund. You can see that the fund experienced smaller drawdowns than the broad market index, Nifty 50 TRI.
Source: Advisorkhoj Research, as on 31st December 2025
Bandhan Aggressive Hybrid Fund IDCW Payout Track Record
The fund had been making regular quarterly IDCW payments from March 2023 till March 2025. Post April 2025, the fund has started making regular monthly IDCW payments (see the chart below). Annualized dividend yield (dividend / ex dividend NAV) of the fund in Dec-25 was 9%.
Source: Advisorkhoj Research, as on 31st December 2025
IDCW income is taxed in the hands of the investor as per their applicable tax slab. If an individual's total income (including IDCW payout) is below the basic exemption limit, the IDCW payout effectively becomes tax-free. This makes IDCW more attractive for low-income investors, retirees, or dependents.
Bandhan Aggressive Hybrid Fund Investment strategy
Bandhan Aggressive Hybrid Fund - Current portfolio positioning
Source: Bandhan MF, Advisorkhoj Research, as on 30th November 2025
Who can find Bandhan Aggressive Hybrid Fund suitable?
- Investors aiming to earn relatively better inflation-adjusted returns compared to traditional investments
- Investors who are looking for exposure to equity markets with lesser risk than pure equity funds
- Investors seeking asset allocation across equity and debt within a predefined range
- Investors looking for relatively better risk-adjusted returns
- Investors looking for regular cash-flows can invest in the IDCW option of the scheme*
- Investors with high risk appetites
- Investors with minimum 3 year investment horizon
*IDCW payouts are made at the discretion of the fund house. There is no guarantee of IDCW payouts. Past performance may or may not be sustained in the future. Mutual funds are subject to market risk.
Investors should consult with their financial advisors or mutual fund distributors to understand if Bandhan Aggressive Hybrid Fund is suitable for their investment needs.
Mutual Fund Investments are subject to market risk, read all scheme related documents carefully.
Bandhan AMC Limited (formerly IDFC Asset Management Company Limited), established in 2000, is one of India's Top 10 fund houses in terms of Asset Under Management. It has an experienced investment team with an on-the-ground presence in over 60 cities. Bandhan Mutual Fund is focused on helping savers become investors and create wealth. To support this objective, the fund house's equity and fixed-income offerings aim to provide performance consistent with their well-defined objectives. It is having its Registered Office at - Bandhan AMC Limited, One World Center, 6th floor, Jupiter Mills Compound,841, Senapati Bapat Marg, Elphinstone Road, Mumbai: 400 013
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