AMFI data shows rise in Hybrid Funds Inflow in May
PUNE: Hybrid mutual funds have reported a strong performance in May according to data from the Association of Mutual Funds in India (AMFI) which shows that the net inflows in hybrid mutual funds jumped to Rs 20,765 crore, an increase of 46% increase compared with April, which saw inflows of Rs 14,247 crore. AMFI is an Indian trade association for all the asset management companies of SEBI registered mutual funds in India.A statement issued from AMFI here recently stated that, the sharp increase in hybrid mutual funds comes against the backdrop of global events, particularly the Russia-Ukraine conflict and ambiguity on the trade barriers by the US, all of which led to extremely volatile market conditions.“Investors chose hybrid mutual funds, which is a reflection of an increased inclination towards a diversified portfolio, since hybrid funds invest in a combination of equity, debt, gold andother asset classes like real estate. The allocation between these assets vary depending on the type of hybrid funds. Since hybrid funds combine two or more asset classes in one portfolio, they tend to capture growth opportunities while cushioning the impact of market corrections,” added the statement.Take a look at the recent performance of hybrid funds and the reason for the investor interest is clear. Hybrid funds from Nippon India Mutual Fund have led the charts. The AMCs Balanced Advantage Fund has clocked in a 15.29% return in the last two years, while the Nippon India Multi Asset Allocation Fund gave a 23.16% return in the same period. In the same period, Kotak Hybrid Fund gave a return on 12.15%, ICICI Balanced Advantage Fund 15.76% and SBI Conservative Hybrid Fund 23.82%.Hybrid mutual funds tend to outperform the broader indicessince their portfolio hedged, being a mix of assets and the allocation is aptly divided between equity, debt and other assets like gold and silver. Since these funds also invest in gold, the recent increase in the prices of the yellow metal, has aided the performance of hybrid mutual funds, the statement further added.