Balanced Hybrid Funds

About

An open-ended balanced scheme investing in equity and debt instruments. The investment in equity and equity related instruments shall be between 40 percent and 60 percent of total assets while investment in debt instruments shall be between 40 percent and 60 percent. No arbitrage is permitted in this scheme.

Fund Type

Hybrid

Key Features

Balanced Asset Allocation: Roughly 40–60% in both equities and debt for a balanced risk–return profile.

Experienced fund managers actively maintain and rebalance the portfolio

Diversification: One fund gives exposure to multiple asset classes, reducing concentration risk.

Growth + Stability: Equity portion provides growth potential; debt provides income and reduces volatility.

Taxation

STCG

If units are sold within 36 months, gains are added to your income and taxed at your normal income-tax slab rate.

LTCG

If units are sold after 36 months (3 years), gains are taxed at 20% with indexation benefit.

Dividends Tax

Dividend payouts or reinvested dividends are taxed as per your income-tax slab rate in your hands. There is no Dividend Distribution Tax (DDT) at the fund level since its abolition in 2020.

Exemption Limit

For debt-oriented balanced hybrids, no specific capital gains exemption limit like equity funds exists. LTCG on such funds is taxed at 20% with indexation, regardless of amount or limits.

Indexation

Available for long-term capital gains on balanced hybrid funds that are taxed like debt funds (i.e., < 65% equity).

Allocation

SVG Icon

Equity and Equity Instruments

40% – 60%

Debt Instruments

40% – 60%

Locked in Period

Nill

Exit Load

Some schemes might charge an exit load of 0 – 1% if units are redeemed within 1 year. However, the exact structure may vary based on the specific scheme.

Risk Associated

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.