I invested Rs. 10,000 on 1st May in HDFC Balanced Fund. On 1st June, it got switched to HDFC Hybrid Equity Fund. But it shows only 9,798 invested value in HDFC Hybrid Equity Fund.

Answer
Good observation but rest assured you haven’t lost any money due to the merger.

Actually switch is like selling one fund and buying another. Let me explain with your fund.

Date1st May1st June
FundHDFC Balanced FundHDFC Balanced Fund
NAVRs 157.61Rs 154.425
Units63.447863.4478
AmountRs 10,000Rs 9,7981

So in last 1 month this fund lost 2% (Rs. 200).

On 1st Jun, Switch happened and all units were redeemed from HDFC Balanced and money was invested in HDFC Hybrid Equity Fund.

Date1st June1st June
FundHDFC Balanced FundHDFC Hybrid Equity Fund
NAVRs 154.425Rs 52.9140
Units63.4478185.167
AmountRs 9,798Rs 9,798
RedeemedPurchased

So now if you look at from HDFC Hybrid Equity Fund, It only got Rs. 9,798 from you. Hence, it shows Rs. 9,798 as the invested amount.

This always happens when there is merger on schemes.