Business Desk MUMBAI

Aggressive hybrid mutual funds have been increasingly favoured among investors, with the asset base of the category surging to Rs 2.5 lakh crore in October 2025, an increase of 13% from a year earlier, data released by the Association of Mutual Funds in India (AMFI) revealed.  

  This expansion comes at a time when the benchmark Nifty has gone through a year-long correction and periods of heightened volatility, pushing many investors to seek stability through blended portfolios. Also, the investor base expanded significantly, with the number of folios increasing by 4 lakh over the past year to 60.44 lakh by October 2025 from 56.41 lakh in October 2024, PTI reported on Friday, quoting AMFI data. 

This trend highlights the growing appeal of a balanced investment approach that combines growth and stability. In line with this growing interest, aggressive hybrid funds, an investment solution blending equity and debt exposures, delivered robust returns over different timeframes. On average, the category has generated returns of nearly 7% over the past year, 16.5% over two years, and more than 17% over five years, industry data showed.

According to Shantanu Awasthi, Co-Founder & CEO of Mavenark Wealth, “These funds benefit from both sides-equity and debt. Balanced funds tend to emerge as a strong category: in years where equity returns are volatile, the debt portion helps protect returns; and when equity is moving upwards, they capture the upside.”