Hybrid Mutual Funds Record ₹457 Crore Outflows in September; Multi-Asset Funds Attract ₹3,667 Crore

Key Takeaways

• Hybrid mutual funds recorded net outflows of ₹456.68 crore in September, reversing inflows of ₹10,045.34 crore in August. 
• Arbitrage funds accounted for ₹3,956.38 crore in withdrawals, while balanced advantage funds recorded outflows of ₹912.43 crore. 
• Multi-asset allocation funds attracted ₹3,666.98 crore, while aggressive hybrid schemes received ₹1,863.54 crore. 

Hybrid Fund Flows Turn Negative in September 

Hybrid mutual funds experienced a reversal in monthly net flows during September 2026, although individual categories recorded substantially different investment patterns. 

According to AMFI data released on 12 October, hybrid-oriented schemes recorded net outflows of ₹456.68 crore during September. 

In August, the same broad category had received net inflows of ₹10,045.34 crore. 

The change represents a month-on-month swing of approximately ₹10,502 crore. 

Hybrid mutual funds invest across combinations of asset classes, with the allocation depending on the scheme's mandate and category. 

The September data demonstrates that the industry's aggregate hybrid fund flows were influenced by withdrawals from certain categories despite positive subscriptions elsewhere. 

Arbitrage and Balanced Advantage Funds Record Withdrawals 

Arbitrage mutual funds experienced net outflows of ₹3,956.38 crore, accounting for the largest reported withdrawals within the hybrid segment. 

Balanced advantage and dynamic asset allocation funds also registered redemptions, with net outflows of ₹912.43 crore. 

Equity savings schemes recorded withdrawals of ₹1,227.86 crore. 

These categories use different combinations of equity, debt and derivatives to meet their respective objectives. 

Consequently, their redemption patterns may differ from those of hybrid schemes with higher directional exposure to equities. 

The data identifies the categories experiencing withdrawals but does not establish a single reason for every redemption. 

Multi-Asset Allocation Funds Remain Positive 

Against the broader negative flow position, multi-asset allocation funds attracted net inflows of ₹3,666.98 crore. 

Aggressive hybrid funds also received positive net subscriptions of ₹1,863.54 crore. 

The combined inflows into these two categories amounted to approximately ₹5,530.52 crore. 

This divergence is important because the broad hybrid fund classification includes schemes with materially different portfolio structures. 

Multi-asset allocation funds invest across at least three asset classes under their applicable category requirements. 

Aggressive hybrid funds, meanwhile, generally maintain a higher allocation to equities alongside exposure to debt instruments. 

The positive flows into these categories partly offset withdrawals from arbitrage and other hybrid funds. 

Hybrid Fund Assets Remain Above ₹11 Lakh Crore 

AMFI's September data placed assets managed by hybrid mutual funds at approximately ₹11.52 lakh crore. 

This represented nearly 14% of the mutual fund industry's total assets under management for the month. 

The industry's overall AUM stood at ₹82.64 lakh crore at the end of September. 

The latest figures illustrate why aggregate hybrid fund flows need to be considered alongside individual category data. 

Although hybrid schemes collectively experienced withdrawals, multi-asset allocation and aggressive hybrid funds continued receiving new investments. 

The figures describe actual subscriptions and redemptions during September. They do not establish whether any particular hybrid strategy generated superior investment returns.