Surge in Hybrid Mutual Fund Inflows Amid Market Volatility

Hybrid mutual fund schemes experienced significant inflows of Rs 1.55 lakh crore in 2025-26, marking a 29% increase from the previous fiscal year. Investors favored diversified investment strategies amidst market volatility and global uncertainties. Multi-asset allocation funds gained popularity, contributing to a 17% rise in assets under management.

Hybrid mutual funds have seen a substantial inflow of Rs 1.55 lakh crore in the fiscal year 2025-26, a 29% rise from the prior year, according to data released by the Association of Mutual Funds in India (AMFI). This surge is attributed to investors seeking diversified strategies amid volatile market conditions.

Despite global uncertainties, such as geopolitical tensions in West Asia, hybrid funds gained traction due to their ability to provide balanced investment solutions. Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, highlighted the increased popularity of multi-asset allocation funds for their stable performance.

The number of hybrid fund folios rose to 1.9 crore in March 2026 from 1.56 crore the previous year, with a growth in assets under management from Rs 8.83 lakh crore to Rs 10.35 lakh crore. The rise indicates a growing investor preference for diversified portfolios, even as geopolitical uncertainties impact the global economy.