Hybrid mutual fund schemes attracted significant investor interest in the fiscal year 2024-25, even as inflows dropped by 18% compared to the previous year. The decline, influenced by market turbulence in the latter half of FY25 due to corporate earnings slowdown and geopolitical tensions, did not dampen investor enthusiasm entirely.
Data from the Association of Mutual Funds in India reveals a robust increase in investor numbers and assets under management. These funds, blending equity and debt investments, provide a cushion against market volatility, maintaining their appeal among investors seeking stability.
Experts attribute the steady interest to the drawdown protection offered by the debt components, which shields investors from the full brunt of equity market fluctuations. Looking forward to FY26, investors are expected to continue prioritizing balanced growth and security in their investment strategies.
(With inputs from agencies.)