Investments in hybrid mutual funds were expected to pick up after the tax benefit in debt funds declined, but this did not happen. Hybrid fund folio (investment account) growth has been the lowest in three years as investment in small-cap funds has increased this year.


In 2023, the portfolio of hybrid funds grew by only 5.7%. The growth was 7.6% in 2022 and around 20% in 2021. According to data from mutual fund industry body Amphi, the portfolio of hybrid funds declined by 2.4% in 2020. That year was affected by the Covid restrictions. However, till November this year, a total of Rs 78,200 crore was invested in hybrid funds.


The new plans came in one year as opposed to two years.


Mutual fund companies expected investment in hybrid funds to increase this year. Due to this they started 11 hybrid schemes. In comparison, 5 new schemes were launched in 2022 and 6 in 2021.


Record folio auditions in smallcap funds


Smallcap funds added a record 5.9 lakh folios till November 2023. Niranjan Awasthi, senior vice-president and head of product at Edelweiss MF, said, "Investors are only investing in equity funds this year.