Hybrid Mutual Fund Schemes Clock Influx Of Rs 1.45 Lakh Crore In FY24, Amfi Data Shows

A rise in investors backed this growth in assets, as the number of folios touch 1.35 crore in March 2024, against 1.21 crore in the same period a year earlier

Category-wise, the arbitrage segment saw an inflow of Rs 90,846 crore, followed by more than Rs 33,000 crore investment in multi-asset allocation

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Hybrid mutual fund schemes became immensely popular in 2023-24, official data from the Association of Mutual Funds in India (Amfi) showed. The hybrid mutual fund schemes saw an inflow of Rs 1.45 lakh crore in FY24, helped by strong investments in the arbitrage category, after withdrawals were made in the preceding fiscal year, the data revealed. 

A rise in investors backed this growth in assets, as the number of folios touch 1.35 crore in March 2024, against 1.21 crore in the same period a year earlier, marking an increase of 14 lakh in the investor base, reported PTI. Notably, hybrid mutual fund schemes have been popular in FY24 after a revision in taxation norms for debt funds was made in the beginning of the fiscal. 

The overall investment in the hybrid category stood at Rs 1.45 lakh crore in FY24, against an outflow of Rs 18,813 crore in the preceding 2022-23 fiscal year (FY23), the data showed. 

Commenting on the investment trends, Gopal Kavalireddi, VP- Research, FYERS, noted, “Anticipating a reversal in the interest rate hike cycle in FY24, market participants strategically allocated funds to capitalize on higher rates, while continuing a favourable stance towards equities, real estate, and gold. However, the rate cuts never materialized and bond yields continue to be higher, retaining the interest of investors.”

This was reflected as the equity-dominated category saw an influx of Rs 1,84 lakh crore in the year under review, gaining 25.4 per cent against the previous year. 

Category-wise, the arbitrage segment saw an inflow of Rs 90,846 crore, followed by more than Rs 33,000 crore in the multi-asset allocation, Rs 10,765 crore in balanced advantage funds, and Rs 10,327 crore in equity savings fund, out of the total Rs 1.45 lakh crore investments. 

Notably, hybrid funds are mutual fund schemes that generally invest in equity, debt securities, and sometimes in other assets such as gold.