Hybrid mutual funds see outflows in September, but investors are still putting money into these two categories
Hybrid funds manage nearly 14% of industry assets, but September saw sharply contrasting trends across categories.
Representative Image: Hybrid mutual funds manage nearly 14 percent of the industry’s assets, but September inflows varied sharply across categories.
Hybrid mutual funds manage more than Rs 11.52 lakh crore, accounting for nearly 14 percent of the mutual fund industry’s total assets of Rs 82.64 lakh crore as of September 2026.
But despite their sizeable presence, not all hybrid fund categories had the same September.
While multi-asset allocation funds continued attracting investments and aggressive hybrid fund inflows jumped nearly 41 percent, balanced advantage funds recorded withdrawals for the third consecutive month.
Overall, hybrid mutual funds saw net outflows of Rs 456.68 crore in September, a sharp reversal from inflows of Rs 10,045.34 crore in August, according to data from the Association of Mutual Funds in India (AMFI).
So, which hybrid fund categories attracted money, and which ones saw withdrawals?
Multi-asset funds continue to attract money
Multi-asset allocation funds attracted Rs 3,666.98 crore in September, almost unchanged from Rs 3,670.97 crore in August.
These schemes invest across at least three asset classes, typically including equity, debt and commodities such as gold or silver.
The category has maintained positive monthly inflows throughout the February–September period. However, collections have moderated overall, from Rs 8,476.26 crore in February to Rs 3,666.98 crore in September.
Also read: Small-cap mutual funds attract Rs 9,039 crore in September, highest among equity categories
According to Viraj Gandhi, CEO, SAMCO Mutual Fund, September’s multi-asset inflows were Rs 2,043 crore below the category’s 12-month monthly average.
So, while money continues to enter multi-asset funds, the pace of inflows is considerably lower than earlier in the year.
Aggressive hybrid fund inflows jump 41%
Aggressive hybrid funds attracted Rs 1,863.54 crore in September, compared with Rs 1,322.79 crore in August, an increase of nearly 41 percent.
These funds typically invest 65–80 percent of their assets in equities, with the remainder largely allocated to debt instruments.
That makes their September performance noteworthy. While the overall hybrid category recorded net outflows, aggressive hybrid schemes received more money than in the previous month.
Balanced hybrid funds, reported separately in the AMFI data, also remained positive, although their inflows fell sharply from Rs 1,835.50 crore in August to Rs 313.71 crore in September.
Balanced advantage funds see third straight month of outflows
Balanced advantage funds, also known as dynamic asset allocation funds, recorded net outflows of Rs 912.43 crore in September, compared with Rs 227.90 crore in August.
This was their third consecutive month of withdrawals, following outflows of Rs 252.23 crore in July.
Unlike aggressive hybrid schemes, balanced advantage funds can dynamically change their equity and debt allocations based on the fund’s investment strategy.
The contrast is striking: aggressive hybrid funds saw inflows rise, while balanced advantage funds experienced their largest monthly outflows in the February–September period covered by the data.
Arbitrage funds pull overall hybrid flows into negative territory
Arbitrage funds recorded the largest outflows among hybrid categories in September, at Rs 3,956.38 crore. This followed inflows of Rs 3,789.02 crore in August, representing a reversal of approximately Rs 7,745 crore.
Gandhi noted that September’s withdrawals were also a departure from the category’s 12-month average monthly inflow of Rs 2,266 crore.
Other hybrid schemes also saw mixed flows. Equity savings funds recorded outflows of Rs 1,227.86 crore, compared with Rs 246.05 crore in August. Conservative hybrid funds saw withdrawals of Rs 204.23 crore, against Rs 99 crore in August.
September’s data therefore presents two different pictures. The overall hybrid category slipped into negative territory, largely reflecting arbitrage fund withdrawals. But among the three popular categories, multi-asset and aggressive hybrid funds continued attracting money, while balanced advantage funds remained under pressure.
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