Hybrid Funds, as the name suggests, comprises of both debt and
equity. Based on the weightage of debt and equity in such funds, they are
categorized into six types by the SEBI.
|
Scheme |
Predominantly
invests in… |
Minimum
investment as proportion of total assets |
|
Conservative
Hybrid Fund |
debt
instruments |
Equity &
related: 10-25% Debt: 75-90% |
|
Balanced
Hybrid Fund Aggressive
Hybrid Fund |
equity and debt
instruments equity and
equity related instruments |
Equity &
related: 40-60% Debt: 40-60% Equity &
related: 65-80% Debt: 20-35% Arbitrage is
not permitted in this scheme |
|
Dynamic
Asset Allocation or Balanced
Advantage |
dynamic asset
allocation fund |
The proportion is
dynamic |
|
Multi
Asset Allocation |
at least three
asset classes |
Invests in at
least three asset classes with a minimum allocation of at least 10% each in
all three asset classes. |
|
Arbitrage
Fund |
arbitrage
opportunities |
Equity &
related: minimum 65% Follows
arbitrage strategy |
|
Equity
Savings |
equity,
arbitrage and debt |
Equity &
related: minimum 65% Debt: minimum 10% Minimum hedged
& unhedged to be stated in the Scheme Information Document (SID). |
Hope you find
this useful. Do not miss out the posts on broader classification of mutual funds, types of equity and debt schemes.
