Hybrid Funds: Low Risk, High Return, Perfect Tax Saving Mix

• Hybrid funds invest across various asset classes (equity, debt, gold) to balance risk and return, suitable for investors wary of full equity exposure.
• Also known as asset allocation funds, they offer categories like Equity Savings, Balanced, Aggressive, and Balanced Advantage funds to suit diverse risk appetites.
• A key benefit is automatic rebalancing by fund managers, simplifying asset allocation for investors and reducing the need for constant market monitoring.
• For tax purposes, hybrid funds with a significant equity component are treated like equity funds, offering potential long-term capital gains tax benefits.

Why It Matters: Hybrid funds offer balanced investment with tax benefits for diverse investors.