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 attributed to market volatility and a decrease in new fund offers. However, despite this dip, investor engagement saw a significant surge, with the number of folios reaching 1.56 crore and assets under management (AUM) growing by 22% to Rs 8.83 lakh crore. The balanced nature of hybrid mutual funds remains appealing to investors looking for stability amid market uncertainties. This trend indicates a growing interest among Indian investors in hybrid mutual funds as a strategic investment option in the current economic landscape.