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.

Date 1st May 1st June
Fund HDFC Balanced Fund HDFC Balanced Fund
NAV Rs 157.61 Rs 154.425
Units 63.4478 63.4478
Amount Rs 10,000 Rs 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.

Date 1st June 1st June
Fund HDFC Balanced Fund HDFC Hybrid Equity Fund
NAV Rs 154.425 Rs 52.9140
Units 63.4478 185.167
Amount Rs 9,798 Rs 9,798
Redeemed Purchased

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.