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