SBI Equity Hybrid: Playing Safe In Volatilty

When the equity market is highly volatile and debt is offering better returns, which is the case now, investors feel perplexed about choosing investment options. If you find yourself in a similar dilemma, you could consider investing in hybrid equity funds. Equity-oriented hybrid funds invest in both equity and debt, thus providing the advantages of both worlds. Equity provides higher growth, while debt acts as a shock absorber in the portfolio. The other advantage of investing in these equity-oriented hybrid funds relates to taxation. Despite having a debt component in its portfolio, SBI Equity Hybrid Fund, is taxed like equity funds. Gains from investments after one year are eligible for long-term capital gain tax, which is nil up to `1 lakh. Performance-wise, this fund has been among the consistent ones in the equity-oriented hybrid space. The fund follows a 75:25 allocation ratio...