Hybrid funds are witnessing a decline in investor interest despite mutual fund (MF) players and investment experts consistently recommending this category amid rising equity market volatility.
Net inflows and folio additions to hybrid funds — including balanced advantage funds (BAFs), multi-asset funds, and others — have been falling for three consecutive months.
In January 2025, the category added just 136,000 accounts, the lowest monthly figure since December 2023. Net inflows for the month stood at ₹4,476 crore, the weakest in 13 months. The net inflow data excludes arbitrage funds, given significant differences in their investor base and the nature of

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