Скачать или смотреть Taxation of Hybrid Funds — The REAL Rule Explained in 60 Seconds

Hybrid Fund taxation confuses most investors because every category behaves differently — but the tax rule is actually extremely simple. The entire taxation of Hybrid Funds depends on one number only: their equity allocation.

If a hybrid fund holds 65% or more in equity, it qualifies for equity taxation. This includes Aggressive Hybrid Funds, Balanced Advantage Funds (BAF), and Equity Savings Funds. Under equity taxation, gains held for less than one year are taxed at 15%, and gains held for more than one year are taxed at 10%.

If a hybrid fund has less than 65% equity, it is taxed like a debt fund. That means ALL gains — whether held for 1 month or 10 years — are taxed as short-term capital gains at your income tax slab rate. Conservative Hybrid Funds fall into this category.

Hybrid fund names can be misleading — taxation depends purely on the actual equity percentage, not the label.

Understanding this helps investors choose the right hybrid category for both risk and tax efficiency.

Comment TAXHYB if you want a 20-second visual chart showing the tax rules for every hybrid category.