Hybrid Funds

Schemes that hold equity and debt together under one mandate.

Hybrid schemes hold both equity and debt within allocation bands defined by SEBI category rules. The specific band determines how the scheme behaves and how it is taxed, so two hybrid schemes can differ substantially.

Categories range from conservative hybrid at the debt-heavy end through balanced advantage and aggressive hybrid, to multi-asset schemes that also hold gold or other asset classes.

Key features

• Conservative, balanced advantage, aggressive and multi-asset categories
• Allocation bands prescribed by SEBI scheme categorisation rules
• Dynamic categories adjust equity exposure using a stated model
• Equity taxation applies only where the scheme meets the prescribed threshold
• Rebalancing handled inside the scheme rather than by the investor
• Full portfolio and allocation disclosed in the monthly factsheet