Hybrid Mutual Fund Assets Rise to ₹11.67 Lakh Crore as Category Expands

Key Takeaways

• Hybrid mutual funds managed around ₹11.67 lakh crore as of July 2026, representing 13.6% of total mutual fund industry assets. 
• Assets in the category have risen 108% compared with August 2023. 
• Five of India's ten largest non-debt mutual fund schemes by assets now belong to the hybrid category. 

Hybrid mutual funds have crossed another sizeable industry milestone, with assets under management reaching approximately ₹11.67 lakh crore as of July 2026. 

The category accounted for 13.6% of the mutual fund industry's total assets, according to Association of Mutual Funds in India data cited by The Economic Times. Compared with August 2023, hybrid fund assets have risen 108%. 

The shift is visible beyond the headline AUM number. 

Nearly 17% of assets held by individual mutual fund investors are now in hybrid schemes. Five of India's ten largest non-debt schemes by assets also come from the hybrid universe, according to the report. 

Hybrid funds combine more than one asset class within a single scheme. Depending on the category, portfolios can hold varying proportions of equity, debt, arbitrage positions, gold and other permitted assets. 

The category itself is broad. 

Aggressive hybrid funds generally maintain a larger equity allocation, while conservative hybrid funds lean more heavily towards debt. Multi-asset allocation funds spread money across at least three asset classes, and balanced advantage or dynamic asset allocation funds can alter equity and debt exposures according to their investment framework. 

Recent flow data also indicates that the growth has not been confined to one subsection of the market. 

Multi-asset allocation funds attracted ₹68,519 crore in net inflows between August 2025 and August 2026, according to Franklin Templeton data reported by Mint. Balanced and aggressive hybrid funds received ₹19,554 crore over the same period, while dynamic asset allocation and balanced advantage funds recorded ₹9,842 crore. 

The expansion comes at a time when investors have faced sharp moves across equities, bonds and commodities. 

Rather than representing a single investment strategy, however, the ₹11.67 lakh crore hybrid universe now covers several materially different approaches to asset allocation and risk. 

Its growing share of overall industry assets shows how far the category has moved from being a relatively small segment of India's mutual fund market.