Hybrid fund
A mutual fund that mixes shares, bonds and sometimes other assets like gold in one fund.
A hybrid fund blends asset classes, mainly shares and bonds, in a single fund. SEBI’s 2026 rules set seven hybrid categories, including conservative, balanced and aggressive hybrid, dynamic asset allocation, multi asset, arbitrage and equity savings. The equity share sets both its risk and its tax. See hybrid funds explained.
Questions people ask
What is a hybrid fund?
A hybrid fund invests in more than one asset class, usually shares and bonds, and in some categories gold or other assets. SEBI sets limits on the mix for each category, from conservative hybrid funds that are mostly bonds to aggressive hybrid funds that are mostly shares.
How is a hybrid fund taxed?
By its mix. With more than 65% in Indian shares, it's taxed like an equity fund. With more than 65% in debt, gains are taxed at your slab rate. In between, gains held over 24 months are taxed at 12.5%.
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