Debt mutual funds have experienced slower inflows compared to hybrid and equity funds over the past two years, with total assets growing 1.3 times to 20 trillion by November 2025, while hybrid and equity assets grew 1.8 times. Experts attribute this trend to changes in taxation, specifically the removal of indexation benefits on April 1, 2023, which now taxes gains at the investor's income tax slab rate. This has led investors to explore hybrid funds for potentially better post-tax returns despite higher risks.