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.