I have been reading about hybrid mutual funds and wish to know more about them.
Bhavesh Patil, Pune
As it is difficult to choose between equity and debt for most investors, funds offer a proportional mix of both, also known as hybrid funds. With a pre-defined mix of equity and debt component, they are routinely rebalanced to maintain the equity and debt allocation.
Equity hybrid funds offer 65 per cent exposure to equity, and rest to debt. Debt hybrid funds invest 75 per cent funds in debt and rest in equity. Tax implications when exiting them depend on the orientation of the funds, which you should know of while investing and get the most of the asset allocation that meets your needs and suits your risk profile.
