SBI Equity Hybrid Fund: One of the top performing hybrid funds in current market conditions

Current market scenario

Equity market has turned volatile due to continuing uncertainty about tariffs. After rebounding to 25,637 the Nifty 50 retreated back to 25,100 levels. The rapid pace of geo-political changes since the Trump Administration took office in January 2025 continue to be major risk factors for the market in the short term. In the long term, resilience of the Indian economy, strong GDP growth rate backed by rising domestic consumption creates a promising outlook for Indian equities. In such market conditions asset allocation will be the key factor in balancing risks and returns. While Equity is needed to capture the market potential, there must be the stability of Debt to help with a more resilient portfolio during volatility.

SBI Equity Hybrid fund - A perfect choice

The chart below shows the distribution of 1 year rolling returns of SBI Equity Hybrid Fund, an aggressive hybrid fund versus the market benchmark Nifty 50 TRI over the last 20 years. You can see that SBI Equity Hybrid Fund had lower percentage of negative returns instances. At the same time, the percentage instances of 12%+ returns were nearly the same for both the fund and Nifty 50 TRI. In other words, the fund was able to balance risk and returns for investors.

In this article we will review SBI Equity Hybrid Fund, one of the top performing aggressive hybrid funds in its category.

Source: National Stock Exchange, Advisorkhoj Research, as on 15^th July 2025

About SBI Equity Hybrid Fund

The fund has nearly 30-year vintage and has Rs 78,708 crores of assets of management (AUM). The fund invests in a diversified portfolio of stocks of high growth companies and balance the risk through investing the rest in fixed income securities. SBI Equity Hybrid Fund invests minimum of 65% in equity and equity related instruments and 20-35% of its assets in debt and money market instruments.

Outperformance versus peers across market conditions

The chart below shows the 3 year rolling returns of SBI Equity Hybrid Fund versus the aggressive hybrid funds category average over the last 10 years. You can see that fund consistently outperformed the category average across different market conditions. The fund underperformed for a brief period but has started outperforming again. You can see that the SBI Equity Hybrid Fund had no instances of negative returns (while the category average of negative returns instances was nearly 7%). On the other hand, the percentage instances of 12%+ CAGR returns for the fund was 75% (versus 50% for the category).

Source: Advisorkhoj Research, as on 15^th July 2025

Lower volatility compared to peers

Standard deviation is a measure of a mutual fund scheme's volatility. We compared the standard deviations of all the aggressive hybrid funds which have completed at least 3 years (see the chart below). You can see that SBI Equity Hybrid Fund (in blue) has one of the lowest standard deviations among aggressive hybrid funds.

Source: Advisorkhoj Research, as on 30^th June 2025

Superior risk adjusted returns compared to peers

Sharpe Ratio is a measure of a mutual fund scheme's risk adjusted returns. We compared the Sharpe Ratios of all the aggressive hybrid funds which have completed at least 3 years (see the chart below). You can see that SBI Equity Hybrid Fund (in blue) has higher Sharpe Ratios than most of its peers.

Source: Advisorkhoj Research, as on 30^th June 2025

Wealth creation through SIP

Investors usually associate pure equity funds with wealth creation. However, aggressive hybrid funds despite lower downside risk also have wealth creation potential. The chart below shows the growth of Rs 10,000 monthly SIP in SBI Equity Hybrid Fund over the last 20 years. With a cumulative investment of just Rs 24 lakhs, you could have accumulated a corpus of Rs 1.1 crores.

Source: Advisorkhoj Research, as on 30^th June 2025

Strong SWP track record

The chart below shows the results of Rs 30,000 monthly Systematic Withdrawal Plan (SWP) from Rs 50 lakhs investment in SBI Equity Hybrid Fund over the last 15 years, from 1^st July 2010 to 1^st July 2025. You can see that despite withdrawing more Rs 50 lakhs (which is more than the initial investment amount), the current value of your balance units will be Rs 1.42 crores. SBI Equity Hybrid Fund's SWP performance is a testimony to the usefulness of SWP facility to generate regular tax efficient cash-flows along with potential capital appreciation over long investment horizons.

Source: Advisorkhoj Research, as on 1^st July 2025

Why invest in SBI Equity Hybrid Fund?

• Reduce downside risks in volatile markets.


• Long term wealth creation potential.


• Superior risk adjusted returns potential.


• Benefit of asset allocation rebalancing.


• Potential of generating fixed cash-flows and capital appreciation through SWP.


• Advantage of equity taxation.


• Strong 30-year track record.


• SBI MF is one of the most trusted names in the mutual fund industry.

Who should invest in SBI Equity Hybrid Fund?

• Investors seeking capital appreciation over long investment tenures.


• Investors who do want to reduce downside risks in volatile markets.


• Investors seeking regular tax efficient cash-flows through SWP.


• The fund is suitable for first time investors who do not have experience of market volatility.


• Investors with minimum 3-year investment tenure.

Investors should consult with their financial advisors or mutual fund distributors if SBI Equity Hybrid Fund is suitable for their investment needs.