Why 25% of India’s mutual fund money is in hybrid funds

As market volatility has pushed investors away from hybrid mutual funds in recent months, Aditya Agarwal, Co-Founder of Wealthy.in, explained why the category still matters. Hybrid funds blend equity with debt or gold, cushioning losses during downturns while giving up some gains in bull runs. Agarwal broke down five types — conservative hybrid, equity savings, balanced advantage, multi-asset, and aggressive hybrid — each suited to different goals and holding periods. He advised investors to check the Sharpe ratio and downside capture ratio rather than returns alone, noting hybrid funds are meant to improve investor behaviour and consistency, not just returns. Hybrid funds now account for nearly 25% of India’s individual mutual fund assets.