Mutual Funds Are Replacing Gold and Real Estate in Indian Households
Hybrid mutual fund schemes attracted inflows of Rs 1.55 lakh crore in 2025-26, a 29 per cent increase over the preceding fiscal year, as investors increasingly turned to diversified investment strategies amid volatile market conditions. The category witnessed strong traction despite heightened geopolitical tensions, including the conflict in West Asia, as investors sought balanced investment solutions that could cushion market volatility. "Hybrid funds saw strong traction in FY26 as investors looked for balanced investment solutions during volatile times. Multi asset allocation funds, in particular, gained popularity due to their ability to deliver relatively stable performance across market cycles," Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, told PTI. According to data from the Association of Mutual Funds in India (AMFI), the number of hybrid fund folios rose to 1.9 crore in March 2026 from 1.56 crore a year earlier, adding 34 lakh investor accounts. Assets under manageme
Domestic mutual funds invested heavily in banking stocks in March, offsetting record foreign outflows as market sentiment weakened amid global geopolitical tensions
Despite continued geopolitical headwinds and global risk-off sentiment, domestic investors used the market correction as an opportunity to deploy capital
The minimum application amount during the NFO and on an ongoing basis is ₹500, with subsequent investments in multiples of ₹1
The SBI Nifty Midcap150 Momentum 50 ETF is benchmarked against the Nifty Midcap 150 Momentum 50 Index
Withdrawal of interest deductions on borrowed investment funds is set to increase tax costs for leveraged HNIs and corporate treasuries
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Major fund houses report a sharp rise in online transactions, driven by changing investor habits, distributor behaviour, and fast-growing fintech platforms
Industry leaders said high liquidity and limited supply in certain segments, especially mid- and small-caps, have made deployment challenging and pushed valuations higher
To allow investments in schemes based in US, other markets under LRS
The NFO is benchmarked against the domestic price of gold. According to the SID, the risk of the fund, as well as the benchmark, is high
According to Motilal Oswal, retail mutual fund activity has shown some moderation, particularly in Systematic Investment Plan (SIP) flows, as one-year SIP returns have turned negative.
Higher returns, structural tailwinds and increasing investor confidence encourage investors to park their funds in small-cap and mid-cap funds over large-cap funds: ICRA Analytics
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India's equity markets have more than doubled to $5.3 trillion over the last five years, drawing millions of retail investors
Net inflows, account additions highest at a multi-month high in August
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