Hybrid mutual fund schemes have been gaining popularity among investors, attracting Rs 20,634 crore in January, marking a 37 per cent surge from the previous month, largely due to their appeal as an alternative investment option post-change in taxation laws for debt funds.

With this, the total inflow in the category reached Rs 1.21 lakh crore in the April-January period of the current financial year (FY24).

However, hybrid schemes saw outflow in the same period of the preceding financial year.

Hybrid funds are mutual fund schemes that typically invest in a combination of equity and debt securities and sometimes in other asset categories such as gold.

The category has been attracting regular inflows since April 2023, after a change in taxation for debt funds that kicked off in the same month. Before that, the segment saw a net withdrawal of Rs 12,372 crore in March last year.

According to the latest data from the Association of Mutual Funds in India (Amfi), hybrid schemes witnessed an inflow of Rs 20,637 crore in January, which was higher than the Rs 15,009 crore inflow seen in December.

The two categories of hybrid funds that attracted the most funds are arbitrage funds and multi-asset allocation funds.

PTI