Hybrid mutual funds in India witnessed a decline in net inflows to Rs 1.19 lakh crore during FY25, marking an 18% decrease attributed to market volatility and a decrease in new fund offers. However, despite this setback, investor participation saw a significant increase, with the number of folios reaching 1.56 crore and the Assets Under Management (AUM) growing by 22% to Rs 8.83 lakh crore. The balanced structure of hybrid funds remains a key attraction for investors looking for stability amidst market uncertainties.