Mutual Fund News / Mutual funds are becoming the first choice of people, not stock market, gold and silver

Mutual Fund News: Despite a gradual improvement, the volatility seen in equity markets in recent weeks and gold prices reaching record levels have put investors in a state of confusion. At such a time, hybrid mutual funds have emerged as a balanced and safe option for investors.

Data from the Association of Mutual Funds in India (AMFI) shows that hybrid funds saw a net investment of Rs 14,247.55 crore in April 2025, while there was a net withdrawal of Rs 946.56 crore from the same category in March. This trend shows that investors are now inclined towards a more secure and diversified portfolio.

Safe bet in market uncertainty

According to experts, the uncertainty of the Russia-Ukraine war, ambiguity over US tariff policies and volatility in global markets have increased fear and uncertainty among investors. In such an environment, hybrid mutual funds provide an option that is likely to deliver better returns while balancing risk.

The main attraction of hybrid funds is their diversified asset allocation. These funds invest in equity, debt, gold, silver and in some cases, real estate. This balance not only reduces risk but also ensures potential gains in both bullish and bearish market conditions.

Performance boosted trust

Nippon India Mutual Fund's Balanced Advantage Fund gave a return of 13.55% in the last three years, while its Multi Asset Allocation Fund caught investors' attention with a return of 17.99%. The specialty of this fund is that it also invests in commodities like gold and silver, allowing investors to directly benefit from the recent rise in precious metals.

Hybrid options from Kotak, ICICI Prudential and SBI Mutual Funds have also performed well with returns of more than 10%.

Why choose hybrid funds?

• Diversified portfolio: A mix of equity, debt and commodities in a single fund.
• Balance in risk: Capital protection with the potential for higher returns.
• Dynamic allocation: Balance in assets according to the mood of the market.
• All-Weather Fund: Suitable in both bearish and bullish conditions.