Ch.5 · SID, SAI and KIM Documents · medium
What is a 'conservative hybrid fund' as per SEBI's categorisation and how is it taxed?
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EXPLANATION
A conservative hybrid fund invests 10–25% in equity and 75–90% in debt. Since equity allocation is below 65%, it is taxed as a debt fund — STCG added to income for holdings up to 24 months, LTCG at 20% with indexation for holdings above 24 months (pre-2023 rules). It is suitable for conservative investors wanting some equity exposure.
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