Hybrid Mutual Fund Schemes See ₹1.19 Lakh Crore Inflows in FY25

In the financial year 2024-25 (FY25), hybrid mutual fund schemes attracted inflows of ₹1.19 lakh crore, registering an 18% decline compared to the ₹1.45 lakh crore recorded in FY24. This moderation is largely attributed to heightened market turbulence during the second half of the fiscal year, triggered by a combination of corporate earnings slowdown and geo-political tensions.

Investor Base and AUM Continue to Expand

Despite the softening in inflows, the hybrid category showcased impressive resilience. Data from the Association of Mutual Funds in India (Amfi) revealed a significant increase in both the number of investors and assets under management (AUM). The number of folios in hybrid schemes rose from 1.35 crore in March 2024 to 1.56 crore in March 2025, adding more than 33 lakh new investors.

Correspondingly, the AUM for hybrid schemes grew to ₹8.83 lakh crore by March 2025, up from ₹7.23 lakh crore a year earlier — marking a robust growth of 22%. Meanwhile, the mutual fund industry’s total AUM surged past ₹65.74 lakh crore, setting a new record.

Read More: Best Aggressive Hybrid Mutual Funds To Invest In 2025. 

Role of Debt Component in Mitigating Drawdowns

One of the factors contributing to the sustained investor interest in hybrid mutual funds is the relative protection offered by their debt allocation. The debt component acts as a buffer against equity market volatility, providing stability during uncertain periods.

Slower New Fund Offer Activity Impacts Inflows

Another key reason behind the moderated inflows during FY25 was a decline in the number of New Fund Offers (NFOs) in the hybrid category. In FY24, the category had seen 21 NFO launches, which played a significant role in boosting inflows. However, in FY25, the NFO count dropped to 12, resulting in a more subdued pace of net inflows into hybrid schemes.

Overview of Hybrid Mutual Fund Schemes

Hybrid mutual funds are investment schemes that allocate funds across multiple asset classes, primarily equities and debt instruments, and occasionally in commodities such as gold. This diversified approach seeks to balance growth opportunities with income stability, offering a blended investment experience to investors.

Conclusion

Hybrid funds witnessed heightened investor interest following regulatory changes in the taxation framework for debt funds. These shifts further encouraged investors to explore hybrid categories as an alternative investment option amidst evolving market conditions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.