According to AMFI data, hybrid mutual funds had inflows of Rs 1.45 lakh crore in FY24

The Hybrid Mutual Funds Scheme returned in the 2023–2024 fiscal year. The Association of Mutual Funds in India (AMFI) reports that investments have increased to Rs 1.45 lakh crore as a result of significant inflows into the arbitrage category, as opposed to an outflow of Rs 18,813 crore in FY23.

An increase in investors was the cause of the asset growth. The number of investors in this group increased from 1.21 crore to 1.35 crore in March 2024, indicating a preference for hybrid funds among the investor base. These mutual fund schemes invest in gold and other assets, as well as a mix of debt and equity instruments. They are known as low-risk balanced funds since they invest in many asset types at once.

Since the beginning of the fiscal year 2023–24 in April, when the taxation of debt funds changed, this category has been drawing consistent investments. Previously, in March, there had been a net outflow of Rs 12,372 crore from this area. A staggering Rs 90,846 crore came into the arbitrage category out of the Rs 1.45 lakh crore inflow. This was followed by Rs 33,000 crore going into multi-asset allocation, Rs 10,765 crore into balanced advantage fund, and Rs 10,327 crore going into an equity saving fund.

According to Gopal Kavalireddi, Vice President of Research at FYERS, who was cited in a Zee Business report, the increased inflow may have resulted from market participants allocating funds to capitalise on higher rates while continuing to invest in equities, real estate, and gold in anticipation of a reversal in the interest rate hike cycle in FY24. In FY24, investments in the equity-oriented category totaled Rs 1.84 lakh crore. It represented a 25.4% rise in this category.

This week, the quarterly results of the firms will be watched in addition to global indices, according to Siddharth Khemka, Head of Retail Research at Motilal Oswal Financial Services Limited. He said that US manufacturing and service PMI data, US first-quarter GDP, and Japan’s monetary policy would all be watched by investors.