Navigating Dilemma: Edelweiss Active-Aggressive Hybrid Mutual Fund

In the dynamic world of mutual funds, the Edelweiss Aggressive Hybrid Fund (EAHF) stands out as a compelling choice for investors seeking growth and resilience. Managed by Edelweiss Mutual Fund, this hybrid fund allocates 70-75% of its portfolio to equities and the remainder to debt, offering a balanced approach to investment.

For those opting for the direct plan, the expense ratio drops to a competitive 0.4%, undercutting the category average of 0.8%. Meanwhile, the regular plan maintains a slightly lower expense ratio of 1.9%, again slightly below the category average of 2%.

EAHF follows a multi-cap approach, with approximately 70% of the equity allocation invested in large-cap stocks and the remaining 30% in mid- and small-cap names. This strategy allows the fund to capitalise on growth opportunities across various market segments.

The investment universe for EAHF includes the top 500 companies by market capitalization, divided into mega-cap, large-cap, mid-cap, and small-cap buckets. The fund screens for companies with growth potential, solid fundamentals, and improving market sentiment within these buckets.

The debt allocation in EAHF is managed conservatively, focusing on high-quality corporate bonds. Prominent names in its debt portfolio include Aditya Birla Finance, HDB Financial Services, NABARD, National Housing Bank, and SIDBI. EAHF restricts itself to AAA-rated securities in its debt portfolio and ensures limited sensitivity to interest rate movements through a Macaulay Duration of between 0.1 and 3.5 years.

Notably, EAHF has notable exposure to domestic pharmaceuticals and healthcare companies, as well as capital goods, chemicals, defence, and non-banking financial companies (NBFCs). However, the fund remains underweight on technology, private banks, and oil & gas stocks.

EAHF uses quantitative models to blend the growth, quality, and momentum factors to identify opportunities. Companies with poor governance practices, high promoter pledging, or excessive leverage are filtered out by EAHF. This approach, less common among peers, adds a layer of rigour to the fund's investment strategy.

Over the last five years, EAHF has averaged 18% annually, comfortably beating the category average of 16%. The return range for EAHF has spanned from 12% to 25%, demonstrating resilience during downturns and upside potential during rallies.

In the current market, a systematic investment plan (SIP) is more advisable than a lump-sum investment for EAHF. This strategy allows investors to average their costs and benefit from rupee cost averaging over time.

The Edelweiss Aggressive Hybrid Fund, managed by experienced fund managers including Bhavesh Jain, Bharat Lahoti, and Rahul Dedhia, is located in Edelweiss House in Mumbai. As of August 30, 2025, there is no specific public information about direct connections to other fund companies using similar factor-based approaches.

For investors seeking growth, resilience, and a balanced approach to investment, the Edelweiss Aggressive Hybrid Fund is a compelling choice in the Indian mutual fund landscape.