Hybrid mutual funds in India witnessed a decline in net inflows to Rs 1.19 lakh crore during the fiscal year 2025, marking an 18% decrease primarily attributed to market volatility and a decrease in new fund offers. However, despite this setback, there was a notable surge in investor participation as the number of folios rose to 1.56 crore. Additionally, the Assets Under Management (AUM) saw a significant growth of 22% to reach Rs 8.83 lakh crore. The balanced structure of hybrid mutual funds remains appealing to investors looking for stability amidst market uncertainties. This trend indicates a growing interest in hybrid funds as a reliable investment option in the Indian market.