Hybrid inflows continue in September, led by multi-asset; arbitrage turns negative

Representative

Hybrid strategies extended their positive streak in September 2025, with leadership rotating toward multi-asset and balanced hybrids, while arbitrage saw a modest reversal. The composition of flows suggests investors stayed engaged with diversified allocation products, even as some tactical sleeves eased.

Multi-asset allocation led the category with Rs +4,982 crore in September (August: Rs +3,528 crore), marking a clear month-on-month pick-up. Balanced/aggressive hybrid followed with Rs +2,014 crore (August: Rs +1,870 crore), and dynamic asset allocation/balanced advantage held steady at Rs +1,689 crore (August: Rs +2,316 crore), continuing to draw flows into frameworks that shift equity/debt in response to market signals. Equity savings remained constructive at Rs +1,747 crore (August: Rs +869 crore), adding incremental support to the hybrid complex. Conservative hybrid was roughly flat to negative at Rs -46 crore (August: Rs +44 crore).

The key tactical sleeve, arbitrage, flipped to outflows at Rs -988 crore (August: Rs +6,666 crore). The turn contrasts with its earlier leadership but is consistent with a broader September pattern where cash-futures spread capture was less of a dominant theme.

In aggregate, September’s hybrid tape shows ongoing preference for diversified allocation solutions. The strength in multi-asset and the persistence of balanced advantage and balanced/aggressive underscore stable interest in vehicles that blend growth and income and dynamically manage risk, while equity savings continued to add. The single notable change from August is the arbitrage reversal, which tempered the total but didn’t upend the positive narrative across the rest of the category. Relative to July’s high watermark and August’s moderation, September reads as steady participation with shifts inside the basket rather than a directional change in overall investor engagement.