Multi-asset allocation funds emerge as top-performing hybrid segment in February

Multi-asset allocation funds emerged as the top-performing segment within hybrid funds in February.It attracted inflows of ₹8,476 crore, significantly higher than other categories such as balanced advantage and dynamic asset allocation funds, which received ₹1,521 crore.

Overall, hybrid fund inflows declined 31% to ₹11,983 crore from ₹17,356 crore in January 2026, while conservative hybrid funds continued to see minor outflows for the fourth consecutive month.

Industry experts say the strong performance of multi-asset funds reflects investors’ preference for stability amid volatile markets.

Santosh Joseph, Founder and Partner at Germinate Investor Services LLP, noted, “Multi-asset funds have delivered consistent returns even as equities and gold funds experienced volatility. Incremental SIP and lump sum flows are likely to continue rooting into this segment.”

Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital, added that inflows into multi-asset allocation funds are higher than any equity category, showing that investors are responding to recent performance trends.

“While gold and multi-asset funds continue attracting flows amid geopolitical tensions, undervalued large-cap and select small-cap stocks offer better long-term opportunities,” he said.