Hybrid funds remain in favour in August, though momentum slows

Hybrid funds’ AUM reached around Rs 8.9 lakh crore, higher than August 2024.

Hybrid schemes continued to see investor interest in August 2025, though inflows across categories were smaller compared with July. Arbitrage and multi-asset funds remained the key drivers, while balanced advantage and equity savings schemes moderated.

Arbitrage funds posted Rs 6,666 crore in net inflows during the month, slightly below the Rs 7,296 crore in July but far higher than the Rs 2,372 crore added in August 2024. Their AUM climbed to more than Rs 3.06 lakh crore, reflecting steady demand.

Multi-asset allocation funds brought in Rs 3,528 crore, also lower than July’s Rs 6,197 crore but nearly double the inflows recorded in August 2024. Balanced advantage funds slowed to Rs 2,316 crore from Rs 2,611 crore in July, while aggressive hybrid schemes recorded Rs 1,870 crore, down from Rs 2,364 crore a month earlier.

Conservative hybrid funds remained positive with Rs 44 crore in inflows, a small number but a reversal from outflows a year earlier. Equity savings funds added Rs 869 crore in August, after more than Rs 2,100 crore in July and above the Rs 1,457 crore mobilised last year.

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Overall, hybrid funds’ AUM reached around Rs 8.9 lakh crore, higher than August 2024. The segment’s continued growth reflected investor appetite for diversified products, with arbitrage and multi-asset allocations drawing the bulk of flows. However, compared with July, the pace of inflows slowed across most categories, leaving August more measured.