Ch.5 · SID, SAI and KIM Documents · hard
What is the minimum equity allocation in an 'aggressive hybrid fund' and how does this affect taxation?
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EXPLANATION
An aggressive hybrid fund maintains 65–80% in equity and 20–35% in debt. Since equity allocation is at least 65%, it qualifies for equity fund taxation: STCG at 15% for holdings up to 1 year, LTCG at 10% (above ₹1 lakh) for holdings above 1 year. This makes it more tax-efficient than debt-oriented hybrid funds.
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