Hybrid Mutual Funds See ₹1.55 Lakh Crore Inflows in FY26 Amid Market Volatility

Hybrid mutual fund schemes witnessed strong inflows during the financial year FY26, reflecting a shift in investor preference towards diversified strategies. Data from the Association of Mutual Funds in India indicates that net inflows rose significantly compared to the previous year.

The period was marked by heightened global uncertainties and volatile equity market movements. Investors increasingly opted for balanced investment approaches to manage risk and enhance portfolio stability.

Strong Growth in Hybrid Fund Inflows

Hybrid mutual fund schemes recorded total inflows of ₹1.55 lakh crore in FY26, marking a 29% increase compared to the preceding fiscal year. This growth highlights rising investor interest in funds that combine equity, debt, and other asset classes.

The increase in inflows suggests a preference for relatively balanced exposure during uncertain market conditions. The category continued to attract capital despite global economic and geopolitical challenges affecting overall market sentiment.

Rising Investor Participation and Folio Expansion

Investor participation in hybrid funds expanded notably over the same period, indicating broader adoption of the category. The number of hybrid fund folios rose to 1.9 crore in March 2026 from 1.56 crore in March 2025.

This represents an addition of 34 lakh investor accounts within a year. The increase in folios reflects growing awareness and acceptance of diversified investment strategies among retail investors.

Growth In Assets Under Management

Assets under management (AUM) of hybrid schemes also recorded steady growth during FY26. Total AUM increased to ₹10.35 lakh crore in March 2026, up from ₹8.83 lakh crore in March 2025.

This represents a 17% growth over the period. The rise in AUM was supported by both fresh inflows and market-linked valuation changes across underlying assets.

NFO Activity and Fund Launch Trends

New fund launches in the hybrid category also saw an increase during FY26, reflecting sustained industry focus on the segment. A total of 17 hybrid fund new fund offers were launched during the year, compared to 12 in FY25.

However, inflows through these NFOs moderated to around ₹4,106 crore from approximately ₹4,792 crore in the previous fiscal year. This trend suggests that while product offerings expanded, investor allocations were more measured.

Read More: 5 Mutual Funds Make Complete Exit from 9 Midcap Stocks in April 2026 Portfolio Optimisation.

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Conclusion

Hybrid mutual funds recorded strong inflows and rising participation during FY26, supported by demand for diversified strategies. Growth in folios and AUM highlights increasing investor engagement in the category.

Market volatility and global uncertainties played a key role in shaping allocation preferences. Overall, the segment continued to evolve as investors balanced risk and return through multi-asset exposure.

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