Investors are looking beyond pure-play equity schemes, say analysts

The fear of a sharp correction in the equity market is compelling MF investors to consider less risky alternatives, say industry players

Hybrid and passive investment schemes offered by mutual funds (MFs) are increasingly being preferred by investors to pure-play equity schemes. Fear that the equity market may come off after a sharp run-up is compelling investors to book non-equity or less risky alternatives, say industry players.

A slew of new fund offers (NFOs) in passive funds and international funds have also led to investors looking to diversify from equity schemes. The data from the Association of Mutual Funds in India (Amfi) shows that in the past six months, hybrid funds have seen net inflows of around Rs 22,000 crore. Hybrid funds include