Hybrid mutual funds in India witnessed a decline in net inflows to Rs 1.19 lakh crore in the fiscal year 2025, marking an 18% decrease primarily attributed to market volatility and a decrease in new fund offers. However, despite these challenges, investor engagement and interest in hybrid mutual funds have surged significantly. The number of folios has reached an impressive 1.56 crore, indicating a growing investor base. Additionally, the assets under management (AUM) for hybrid mutual funds have seen a notable increase of 22% to reach Rs 8.83 lakh crore. The balanced structure of hybrid mutual funds continues to appeal to investors who are seeking stability and diversification in their portfolios, especially during times of market uncertainties. This trend highlights the growing confidence and preference for hybrid mutual funds among investors in India.