Hybrid MFs draw `1.55L cr inflows

Investors increasingly preferred balanced portfolios offering stability, downside protection and diversified exposure amid volatile global market conditions

Hybrid mutual fund schemes attracted inflows of ₹1.55 lakh crore in FY26, marking a 29% rise over the previous financial year as investors increasingly preferred diversified investment strategies amid volatile global markets.

 According to data from Association of Mutual Funds in India, hybrid fund folios rose to 1.9 crore in March 2026 from 1.56 crore a year earlier, while assets under management increased 17% to ₹10.35 lakh crore.

   Market experts said investors shifted towards hybrid and multi-asset allocation funds due to rising geopolitical tensions, crude oil volatility, tariff concerns and uncertainty in global equity markets. These funds offered a balanced mix of equity, debt and gold exposure, helping investors manage risk more effectively. Radhika Gupta, MD and CEO of Edelweiss Mutual Fund said multi-asset allocation funds gained popularity because of their relatively stable performance across market cycles.

  Experts also noted that gold’s strong performance during FY26 supported returns in hybrid portfolios. Industry participants said hybrid funds gained traction as they offered downside protection through debt investments while allowing participation in equity market growth. 

 Arbitrage funds also witnessed strong inflows due to their lower-risk and tax-efficient structure. 

  Analysts believe hybrid schemes may continue witnessing healthy inflows as investors seek stability and diversification amid ongoing global economic and geopolitical uncertainties.