Hybrid MFs get `72k cr in 7 mths

New Delhi: Hybrid mutual fund (MF) schemes have been gaining popularity among investors with the category attracting over Rs72,000 crore in the past seven months, following a change in taxation for debt funds and huge inflow experienced in the arbitrage category.

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 after a change in taxation for debt funds that kicked off in the same month. Before that, the segment saw a net withdrawal of Rs12,372 crore in March.

According to the latest data with the Association of Mutual Funds in India (Amfi), hybrid schemes witnessed an inflow of Rs9,907 crore in October. The category had attracted Rs62,174 crore in the April-September period. With this, total inflow has reached Rs72,081 crore in the first seven months of the current financial year.

Of Rs72,081 crore, a massive amount of Rs48,978 crore inflow was seen in the arbitrage category, data showed. Hybrid funds appeal more to investors with a moderate or low-risk profile. These funds are good investment options as they reduce the volatility associated when participating in equity markets while simultaneously providing stability in the fixed-income market.