{
  "id": 10399713,
  "title": "ET Wealth | Hybrid funds boom, but advisers divided",
  "url": "https://urgent.news/2026/09/28/et-wealth-hybrid-funds-boom-but-advisers-divided",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-28T01:00:00.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/wealth/invest/hybrid-funds-are-booming-why-some-advisers-prefer-them-while-others-remain-cautious/articleshow/134497947.cms"
  },
  "original_language": "en",
  "account": "Hybrid funds have experienced a surge in popularity over the past few years, making up 13.6% of the total mutual fund industry assets as of July 2026, according to data from the Association of Mutual Funds in India (AMFI). This represents a 108% increase from August 2023, with nearly 17% of individual mutual fund (MF) assets now residing in hybrid funds. Five out of the top 10 non-debt schemes by assets in the country are in the hybrid category.\n\nHowever, financial advisers remain divided on the use of hybrid funds. Some see specific use cases, while others stay away from them. For many, hybrid funds have simply replaced fixed income assets due to unfavorable changes in taxation of debt funds since Budget 2023. Hybrid funds are now seen as tax-friendly alternatives to traditional debt funds, which are now taxed at the investor's slab rate with no indexation benefit.\n\nAdvisers like Deepesh Raghaw, Founder of PersonalFinancePlan.in, use hybrids as a \"proxy for debt\" rather than an integral part of portfolio construction. Ravi Saraogi, Founder of Samasthiti Advisors, also prefers hybrid products for debt allocation in retirement portfolios due to favorable tax treatment. Vishal Dhawan, Founder and CEO of Plan Ahead Wealth Advisors, recommends hybrid funds for short- to medium-term liquidity needs and uses them as a tax-efficient replacement for traditional fixed income.\n\nOthers, like Kalpesh Ashar, Founder of Full Circle Financial Planners and Advisors, use hybrid funds to lower overall portfolio risk by providing stability, as they tend to show much lower volatility than pure equity funds over longer time frames. Hybrid funds are seen as a gateway for first-time investors, according to Rohit Shah, Founder and CEO of GYR Financial Planners, as they offer a middle ground between pure fixed income and full equity investments.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}