Hybrid Funds AUM jumps in June quarter; Arbitrage, Multi Asset Allocation drive gains: Ventura
The AUM of arbitrage funds grew by 22.2% during the June 2025 quarter compared to the previous quarter March 2025 while Multi Asset Allocation funds increased their AUM by 15.4% in the same period.
The performance of Arbitrage and Multi Asset Allocation funds shows that they are good alternative option to protect money while still making a decent return. (Image: Freepik)
Open-ended Hybrid schemes experienced a significant change in investor preferences during the June 2025 quarter when Arbitrage and Multi Asset Allocation funds became the leading performers in Asset Under Management (AUM) growth as reported by Ventura, a full-service stock broking platform.
The AUM of arbitrage funds grew by 22.2% during the June 2025 quarter compared to the previous quarter March 2025 while Multi Asset Allocation funds increased their AUM by 15.4% in the same period. The strong expansion demonstrates that investors actively seek investment approaches which combine safety with diversification.
Balanced Hybrid/Aggressive Hybrid funds also shown a healthy growth of 8.9%, while Equity Savings and Dynamic Asset Allocation/Balanced Advantage funds grew by 8.2% and 8.1%, respectively. In contrast, Conservative Hybrid funds saw the lowest growth among the categories, with a modest 3.4% increase.
This trend shows that more and more investors prefer hybrid schemes that offer a mix between stability and returns, especially in a volatile market condition. The performance of Arbitrage and Multi Asset Allocation funds shows that they are good alternative option to protect money while still making a decent return.
Sector-Wise Mutual Fund Holdings: Equity and Debt Breakdown Highlights Market Preferences
Study shows that sectoral allocations by mutual funds offers a clear snapshot of investor sentiment across both equity and debt markets. The top 10 sector holdings reveal a continuation of prior trends, with some sectors recording notable growth or decline in allocations.
Equity Holdings: Dominance of Private Banks and Tech
In Quarter ended on June 2025, Private Banks maintained their dominant position with holdings worth ₹94,029 crore, significantly ahead of the next sector, IT – Software, which stood at ₹41,397 crore. In the equity segment, the top five sectors were Private Banks, IT, Refineries, Pharmaceuticals, and Telecom which remained unchanged in ranking, signaling continued investor confidence in these core areas.
Among the top ten, Refineries stood out by recording the highest market value growth at 15%, showing renewed interest in energy and commodity-driven sectors. Engineering – Construction also moved up, climbing in rank, reflecting increasing allocations possibly tied to infrastructure spending and capital expenditure cycles. Meanwhile, Power Generation & Distribution experienced a 3% decline in market value and dropped in ranking from 6 to 8, hinting at moderated investor sentiment in the sector.
Despite remaining at the lower end of the top 10 list, Finance – NBFCs held their position, reflecting stable interest even amid ongoing regulatory oversight and rising cost of capital concerns. Similarly, Automobiles – Passenger Cars remained a constant in the top 10, likely supported by recovery in consumption and demand.
Debt Holdings: G-Sec Leads but Private Banks Fall
On the debt side, Government Securities (G-Secs) continued to hold the top spot with ₹57,312 crore in holdings, despite recording an 11% decline in market value. This suggests that while G-Secs remain a cornerstone of fixed-income portfolios, fund managers may be selectively reducing exposure amid shifting interest rate expectations.
Public Sector Banks followed with ₹36,218 crore, while NBFCs in the debt segment saw the most substantial growth, rising 24% in value to ₹27,616 crore. This growth helped NBFCs retain their No. 3 position in debt holdings, indicating increased appetite for higher-yield corporate debt instruments.
In contrast, Private Banks experienced a sharp 31% drop in debt holdings, falling from 4th to 7th position. This significant reduction suggests a strategic reallocation away from private bank bonds, possibly due to tighter spreads, credit concerns, or more attractive opportunities elsewhere.
Interestingly, 7 out of 10 sectors in the debt segment maintained their previous quarter’s ranking, indicating overall stability in fund allocation patterns. Engineering – Construction and Power rounded out the list with relatively lower allocations, which may reflect a cautious stance on cyclical and infrastructure-related credit.
