What are the features of Aggressive Hybrid Funds?

• Minimum 65% allocation in equities and 20% in debt

• Moderate to high risk-return trade-off

• Suitable for investors with a long-term investment horizon

• Invest through SIPs or lump sum

• Earn tax-free returns up to Rs.1 lakh if you stay invested for 12 months or more

What are the different types of hybrid funds?

What should be the investment horizon for Aggressive Hybrid Funds?

• Aggressive Hybrid Funds are equity-oriented schemes

• To avoid short-term volatility, a medium to long-term investment horizon is recommended

• Arbitrage opportunities are when the price of an equity security is different in the spot or cash market and the futures or derivatives market

• Such a horizon also helps earn attractive investment returns

• You also get a tax benefit on staying invested for 12 months or more

What is the tax implication of Aggressive Hybrid Funds?

• Aggressive Hybrid Funds attract equity taxation on the capital gains earned

• Returns up to Rs.1 lakh are tax-free if you stay invested for 12 or more months

• Returns exceeding Rs.1 lakh are taxed at 10%

• For redemption within 12 months, returns are taxed at 15%

• Dividends earned, if any, are taxed at your income tax slab rate

What are the payout options?

• Dividend option

  Earn dividends on your investment at regular intervals

• Growth option

  Accumulate the returns over the investment tenure and get a lump sum amount on redemption

Who should invest in Aggressive Hybrid Funds?

• New equity investors

  You can mitigate high risks with the debt component present in the portfolio

• Investors looking to invest in debt and equity

  Aggressive Hybrid Funds are a good choice if you want debt and equity exposure from a single fund.

• Investors with a 3-5 year investment horizon

  To ride out the short-term equity volatility, it is better to have an investment horizon of 3 years or more. Choose Aggressive Hybrid Funds if you can stay invested for 3 years or more.