Hybrid Mutual Fund Rankings: What Changed in October 2026?
We have refreshed our hybrid mutual fund rankings, while keeping our framework constant.
1. Key Takeaways and Observations
Since our last rankings review in July 2026, the markets continued their rally until early August. However, Iran-US war re-escalation, rising oil prices and rising global bond yields meant that markets fell for most part of August and September. As of 5 October 2026, Nifty 50 was trading at levels close to the lows observed in March 2026 while Nifty 500 was marginally above the March 2026 lows. Primary market activity remained strong with numerous IPOs coming in the past quarter.
We continue to use the same scoring methodology as our previous iterations. However, we have refined the benchmark indices (that we use to compare relative returns) for certain categories. Since this change is applied throughout the respective categories – as such, there is no impact on the rankings.
While our previous review in July 2026 showed how funds behaved in market recovery, this current review (and our review in April 2026) indicate how they do in volatile and weak markets. Summary of our key observations in the past quarter below:
Marginal decline in average scores
The average score of our hybrid MF universe declined from 2.46 in July 2026 to 2.37 in October 2026. This was mainly driven by:
Fall in average 3-year and 5-year rolling returns by 0.2% and 0.6% respectively
Higher volatility (measured by standard deviation), resulting in lower sharpe ratio and risk-reward scores
Broadly Stable Top 3
For most categories, the Top 3 funds were broadly unchanged (although their order changed internally). Some notable exceptions were:
SBI Conservative Hybrid Fund – Moved up to 3rd position from 4th, due to ICICI Prudential’s offering dropping in score mainly due to fall in sharpe ratio.
Edelweiss Balanced Advantage Fund – Moved up to 3rd position from 5th position, mainly due to outperformance and Baroda BNP and Aditya Birla Sun Life’s offerings dropping in score due to fund manager change, lower risk-reward score, etc.
Nippon Multi-Asset Allocation Fund - Moved up to 2nd position from 4th position mainly due to relative outperformance. ICICI Prudential’s offering, which was top ranked in July 2026, dropped due to underperformance, likely driven by higher equity exposure.
Top 5 Funds
None of the funds that held top-5 positions in July 2026 has since dropped outside the top 10.
New Entrants
The current review cycle introduces 5 new fund entrants across categories. This means more funds fell within our minimum operating history criteria.
Throughout this blog, we cover the key changes in our rankings since July 2026. We talk about our hybrid ranking framework in greater detail here: Our Hybrid Mutual Fund Ranking Framework
2. Universe Overview
3. Top 3 Funds by Category – October 2026 vs July 2026
The table below presents the top 3 ranked funds in all categories as of the October 2026 review.
4. Category-Level Average 3-Year Rolling Returns
Multi-Asset Allocation funds continued to have the highest 3-year rolling returns amongst hybrid category, mainly driven by their exposure to gold, silver and other instruments – which are not available to other hybrid categories. In terms of change since July 2026, returns dropped highest for equity-heavy categories like Aggressive Hybrid and Dynamic Asset Allocation.
The table lays out the category-wise 3-year rolling returns for the 6 hybrid categories:
5. New Fund Entrants
Five funds entered the ranking universe for the first time in the October 2026 cycle – as they fell within our minimum operational period criteria. Below are the new entrants that fell within our Top 10 in their category.
If you want to see the detailed fund-level scores and category-by-category rankings, explore Creso's mutual fund ranking tool at creso.in, where the ranking data is published alongside our methodology. If you are looking for a platform that brings rankings, client management, and portfolio reporting into one place, take a look at what Creso offers for MFDs.
FAQs
Q: How often does Creso update its mutual fund rankings?
A: Rankings are updated quarterly. The most recent cycle compared July 2026 and October 2026 data across 138 hybrid mutual funds in 6 categories.
Q: Should I switch my clients out of funds that fell sharply in the rankings this quarter?
A: Not automatically. A single-quarter rank movement is one data point. Look at multi-quarter trends and assess whether the decline reflects a systematic issue (fund manager change, strategy drift) or a market-cycle response before acting. There are also tax, risk profile and other considerations that need to be kept in mind.
Disclaimer
The hybrid mutual fund rankings are based on a proprietary, rule-based methodology using data sourced from Morningstar and our predefined quantitative parameters. The rankings are intended solely for educational and informational purposes and should not be construed as investment advice, a recommendation, or an opinion on the suitability of any mutual fund scheme.
Mutual fund investments are subject to market risks, including the possible loss of principal. Past performance and ranking outcomes do not guarantee future results. The methodology does not account for individual investor objectives, risk tolerance, financial situation, or tax considerations.
Rankings are derived from historical data and may change over time due to market conditions, portfolio changes, or methodology updates. Investors and distributors are advised to exercise independent judgment, conduct their own analysis, and consult appropriate financial or tax advisors before making any investment decisions.
The use of fund rankings should be only one of several inputs in the investment decision-making process and not the sole basis for selection.
