By buld_online 
The Edelweiss Aggressive Hybrid Fund has stood out in recent years by delivering strong long-term returns while offering the comfort of lower volatility compared to pure equity funds. With a strategy that blends 65–80% equity exposure with 20–35% allocation to debt, the fund seeks to strike a balance between capital growth and downside protection — a combination that has paid off for patient investors.
As of May 30, 2025, the fund has delivered a 3-year CAGR of 18.83% and a 5-year CAGR of 22.15%, outperforming its benchmark, the CRISIL Hybrid 35+65 Aggressive Index, which returned 14.60% and 17.99%, respectively, over the same periods. The category average also lagged behind at 16.05% (3-year) and 20.33% (5-year), reaffirming the fund’s strong relative performance.
What’s notable is that the fund has achieved this with considerably lower volatility than the Nifty 50 TRI. Over the last five years, the fund posted an annualized standard deviation of 11.27%, compared to 14.72% for the Nifty 50 TRI, highlighting its more stable return profile.
The hybrid structure offers a natural cushion during market drawdowns. For instance, during the bear phase from January 2020 to March 2020, the Edelweiss Aggressive Hybrid Fund declined by -28.06%, compared to a -38.44% fall in the Nifty 50 TRI. Over the full cycle from January 2020 to October 2021, the fund delivered 48.78% returns, marginally outperforming the Nifty’s 48.34%.
Rolling return analysis further strengthens the case for consistency. Over all 5-year rolling periods since inception, the fund never delivered a negative return, with average 5-year returns at 11.84%, and over 48% of observations showing annualised gains above 12%.
For investors looking for a smoother journey without compromising on returns, the Edelweiss Aggressive Hybrid Fund offers a compelling solution, combining active equity management with high-quality debt exposure. Its historical resilience, lower volatility, and long-term outperformance make it a suitable core holding for moderate-to-aggressive investors seeking both growth and relative stability.