Hybrid mutual funds in India witnessed a decrease in net inflows to Rs 1.19 lakh crore in FY25, marking an 18% decline attributed to market volatility and a decrease in new fund offers. Nevertheless, investor engagement saw a significant increase, with folios reaching 1.56 crore and Assets Under Management (AUM) growing by 22% to Rs 8.83 lakh crore. The balanced nature of hybrid funds remains appealing to investors looking for stability amidst market uncertainties.