Hybrid schemes lose traction among investors, net outflow over RS 9,000 cr

Equity market volatility, credit risk concerns impact sentiment

Hybrid schemes, which invest in a mix of debt and equity instruments, are losing traction among mutual fund (MF) investors with the category seeing net outflows of over Rs 9,000 crore in current year.

“There have been concerns around few funds in some hybrid categories over exposure to lower-rated papers. There have also been concerns over inter-scheme transfers,” said Vidya Bala, co-founder of primeinvestor.in

The number of inter-scheme transfers, where debt instruments held in one scheme are sold to another scheme of the same fund house, saw a spike in April.