Hybrid mutual funds in India witnessed a decline in net inflows to Rs 1.19 lakh crore in FY25, marking an 18% decrease attributed to market volatility and a reduction in new fund offers. However, despite this setback, investor engagement saw a significant rise, 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 nature of hybrid funds remains appealing to investors looking for stability amidst unpredictable market conditions. This trend highlights the resilience of hybrid mutual funds in the Indian financial landscape, showcasing their ability to adapt to changing market dynamics and continue to attract investors.