Hybrid funds’ AUM rises; arbitrage and multi asset allocation lead growth in June quarter: Ventura

Open-ended hybrid mutual fund schemes saw a notable increase in assets under management (AUM) in the quarter ended June 2025, with arbitrage and multi asset allocation funds recording the highest growth, according to a study by Ventura, a full-service stock broking platform.

Arbitrage funds’ AUM rose 22.2% from the March 2025 quarter, followed by multi asset allocation funds with a 15.4% increase. Balanced hybrid/aggressive hybrid funds grew 8.9%, while equity savings and dynamic asset allocation/balanced advantage funds increased 8.2% and 8.1%, respectively.

Conservative hybrid funds registered the lowest growth at 3.4%.

Ventura’s report noted that the growth in arbitrage and multi asset allocation categories reflects increased interest in diversified and relatively lower-risk strategies during the period.
In the equity segment, private banks continued to hold the largest share of mutual fund holdings, valued at ₹94,029 crore, followed by IT – software at ₹41,397 crore. The top five sectors — private banks, IT, refineries, pharmaceuticals, and telecom — retained their rankings from the previous quarter.

Refineries recorded the highest market value growth among the top 10 sectors, at 15%. Engineering – construction moved up in ranking, while power generation and distribution declined 3% in value and dropped from sixth to eighth place.

In debt holdings, Government Securities (G-Secs) remained the largest category at ₹57,312 crore, despite an 11% decline in value from the March quarter. Public sector banks were next with ₹36,218 crore.

NBFCs recorded the highest growth in debt holdings, rising 24% to ₹27,616 crore and retaining their third-place position. Private banks saw a 31% decline in debt holdings, moving from fourth to seventh place.

Seven of the top 10 debt sectors maintained their previous quarter’s rankings. Engineering – construction and power were at the lower end of the list.