Hybrid Fund Categories
Hybrid Mutual Funds
One fund combining equity, debt and sometimes gold or arbitrage.
Updated 30 September 2026 · SEBI rules as of 2026
Categories
Conservative, Balanced, Aggressive, Dynamic AA/BAF, Multi Asset, Arbitrage, Equity Savings
Hybrid Fund CategoriesOverview
Hybrid funds combine asset classes to balance growth and stability. SEBI has seven hybrid categories. Tax depends on the equity share: funds with at least 65% equity (including arbitrage) are taxed as equity; others follow debt or “other fund” rules.
| Particular | Details |
|---|---|
| Categories | Conservative, Balanced, Aggressive, Dynamic AA/BAF, Multi Asset, Arbitrage, Equity Savings |
| Tax | Depends on equity share |
SEBI hybrid categories
| Category | Rule | Usual tax status |
|---|---|---|
| Conservative Hybrid | 10–25% equity, 75–90% debt | Debt-like |
| Balanced Hybrid | 40–60% equity (no arbitrage) | Depends on equity share |
| Aggressive Hybrid | 65–80% equity | Equity |
| Dynamic Asset Allocation / BAF | 0–100% equity, managed dynamically | Usually equity (with arbitrage) |
| Multi Asset Allocation | ≥ 10% each in at least 3 asset classes | Depends |
| Arbitrage | ≥ 65% in arbitrage | Equity |
| Equity Savings | ≥ 65% equity incl. arbitrage, ≥ 10% debt | Equity |
Plan your investment
Frequently asked questions
Which hybrid fund is best for beginners?
Balanced advantage or aggressive hybrid funds are common first choices, depending on risk appetite.
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.