IF you are looking at very long term, which is >10 years...

I would say both Buy and Hold and Equity Fund will typically generate IRR of 8%-10% on AVERAGE. This has been proven in a lot of studies (provided you do not buy lump sum at peak). Buy and hold have advantage of 1.5% of management fees excluded, so a little bit of extra advantage gains.

In the long run (when I say long run means long run ah...means you buy even though stock crash and don't sell out ah)  the above will likely beat both a bond and balanced fund.

Look at it this way...historically...(average of >50 years)

Equity - Capital Gain - IRR 8-12% (over long term)
Dividend Stocks - Dividend Gain - IRR 5-8%
Bond Fund & FD - Interest Gain - IRR 3-6%

But you cannot just chase gain, you must have some stability in which bond and FD will give you a peace of mind. So you cannot allocate 100% to equity. If you can take a 50% drop within 1 year (average drop in most downturn), then by all means go for 100% equity, if not then add bond accordingly until you feel comfortable. Buy and hold only IF the fundamentals remains intact!

But that being said, buying equity is much more difficult, hence more mistakes will be made. Buying at the wrong time will spell doom, so buy often and buy at dips, and most important buy with fundamentals. Never ever show hand in investment.... no matter how confident you think, black swan event can happen. You can minimize buy and hold risk and volatility by no holding more than 10% of each counter.

As a portfolio, you should take blended IRR of all components, no point separating each one as each item in your portfolio has a duty to perform, some are warriors (equity) and some are defenders (bond). Sometimes you need to keep some reserve warriors/defenders (cash) in case of breakthrough by the enemy. An imbalance depending on wrong strategy can be bloody, actually Sun Tzu can be applicable to investment.....