In this video, we will discuss how hybrid mutual funds or hybrid funds are taxed
Edited highlights
0:06 In this video, we will discuss how hybrid mutual funds or hybrid funds are taxed
0:11 The backdrop of this video has been the recent changes in long term capital gains tax and rationalisation and reclassification of mutual fund schemes
0:24 Previously, a category of hybrid funds called balanced funds had become popular, especially in the recent past
1:29 The critical role playing in taxation of hybrid funds is the amount of investment made in equities by the hybrid fund
1:37 If it is 65% or more the taxation is the same as an equity fund
1:49 If it is less than 65%, it is treated like a debt fund
2:10 If the investment in hybrid equity fund is more than one year, you pay 10% long term capital gains tax if you annual capital gains is more than Rs 1 lakh
2:21 If the investment is less than 1 year old, you pay 15% short term capital gains tax
2:43 If the hybrid fund has invested less than 65% in equities, it is hybrid debt fund and taxed like a debt fund
3:04 If your units are three years or more, you pay 20% long term capital gains tax with benefit of inflation indexation for your units
