Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Hybrid fund invests in both equity and debt in varying proportions, offering balanced risk-return in a single scheme.
Hybrid funds mix shares and bonds in one fund — less volatile than pure equity, more growth potential than pure debt.
Categories include aggressive hybrid (65%+ equity), balanced advantage (dynamic equity), and conservative hybrid (majority debt). Rebalancing within the fund provides discipline. Tax treatment follows equity or debt classification based on 65% equity threshold.
An aggressive hybrid fund with 75% equity and 25% debt on ₹4 lakh investment gives ₹3 lakh equity exposure and ₹1 lakh debt stability in one folio.
Investors wanting single-fund diversification, moderate risk profiles, or first-time equity exposure with a debt cushion.
Funds with average equity exposure above 65% generally follow equity taxation rules; others follow debt taxation — verify each scheme.
Separate funds offer clearer allocation control and tax planning. Hybrid simplifies management for hands-off investors.