Trying to understand Hybrid Funds

[Vikram_Ad]

Considering hybrid funds experienced significant growth in assets under management (22% year-over-year) while also seeing a reduction in net inflows during FY25, what key market factors could explain this interesting gap in growth indicators?

[Reema]

Hybrid funds have seen a 22% rise in assets under management this year, demonstrating strong growth. However, new investments have slowed during FY25, reflecting mixed investor sentiment.

This trend could stem from uncertain market conditions, prompting investors to hold back or shift funds elsewhere. Rising interest rates may also be pushing individuals toward safer options.

Additionally, changing investor preferences for alternatives or fixed-income assets could be affecting inflows. Overall, despite higher assets under management, caution and shifting strategies are shaping hybrid fund investments this year.