Hybrid Fund Categories
Balanced Hybrid Funds
40–60% equity without arbitrage.
Updated 30 September 2026 · SEBI rules as of 2026
SEBI mandate
40–60% equity; 40–60% debt
Hybrid Fund CategoriesOverview
Balanced hybrid funds keep 40–60% each in equity and debt; arbitrage is not allowed.
| Particular | Details |
|---|---|
| SEBI mandate | 40–60% equity; 40–60% debt |
| Tax treatment | Depends on equity share |
| Suited for | Moderate investors |
What to check
| Parameter | Why |
|---|---|
| Equity range | Actual equity exposure over time |
| Debt quality | Credit profile of debt portion |
| Drawdowns | Fall during market corrections |
| Expense ratio | Direct vs regular |
| Rebalancing | Automatic asset allocation benefit |
Plan your investment
Frequently asked questions
Are hybrid funds safer than equity funds?
Usually less volatile, but they still carry market risk in the equity portion.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.