Hybrid Fund Categories
Equity Savings Funds
Equity, arbitrage and debt mix with equity taxation.
Updated 30 September 2026 · SEBI rules as of 2026
SEBI mandate
≥ 65% equity incl. arbitrage; ≥ 10% debt
Hybrid Fund CategoriesOverview
Equity savings funds keep at least 65% in equity including arbitrage, and at least 10% in debt — lower volatility with equity taxation.
| Particular | Details |
|---|---|
| SEBI mandate | ≥ 65% equity incl. arbitrage; ≥ 10% debt |
| Tax treatment | Equity taxation |
| Suited for | Conservative investors wanting equity tax status |
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.