SBI Hybrid Mutual Fund

Investment Objective

The investment objective of SBI Hybrid Mutual Fund is to provide long-term capital appreciation and generate regular income by investing in a diversified portfolio of equity and debt instruments. The fund aims to strike a balance between growth and stability by actively managing asset allocation based on market conditions. Investors can benefit from potential capital appreciation and income generation through this hybrid investment strategy.

Risk Involved in SBI Hybrid Mutual Fund

SBI Hybrid Mutual Fund carries certain risks that investors should be aware of. The fund’s value may fluctuate depending on market conditions, leading to potential capital loss. Equity investments within the fund are subject to market volatility and can be influenced by factors affecting stock prices. Debt investments are exposed to credit risk and interest rate fluctuations. Investors should carefully assess their risk tolerance before investing in SBI Hybrid Mutual Fund.

Return Potential in SBI Hybrid Mutual Fund

SBI Hybrid Mutual Fund offers the potential for attractive returns over the long term. By investing in a combination of equity and debt instruments, the fund aims to benefit from capital appreciation and regular income generation. Equity investments provide higher growth opportunities, while debt investments offer stability and income. The fund’s return potential depends on market conditions and the performance of its underlying investments. Investors should consult the fund’s historical performance and consider their investment goals before investing.

Who Should Invest in SBI Hybrid Mutual Fund?

SBI Hybrid Mutual Funds are a good investment option for investors looking for a relatively stable investment with the potential to generate income and capital appreciation. Hybrid funds invest in a mix of debt and equity securities, which helps to mitigate risk and provide the potential for higher returns than debt funds alone.

Some of the people who may want to consider investing in SBI Hybrid Mutual Funds include:

• Investors who are looking for a relatively stable investment with the potential to generate income
• Investors who are looking for the potential for higher returns than debt funds alone
• Investors who are looking to diversify their portfolio and reduce risk

Things To Consider Before Investing in SBI Hybrid Mutual Fund

Here are some of the factors to consider when deciding whether to invest in the SBI Hybrid Mutual Fund:

• Your investment goals: What are you hoping to achieve with your investment? Are you looking for regular income, capital appreciation, or a combination of both?
• Your risk tolerance: How much risk are you comfortable with? Hybrid funds are generally less risky than equity funds but still carry some risk.
• Your time horizon: How long do you plan to invest? Hybrid funds are typically used for medium-term or long-term goals like retirement.
• Your other investments: What other investments do you have? Hybrid funds can be a good way to diversify your portfolio and reduce risk.

Tax on SBI Hybrid Mutual Fund

The tax treatment of SBI Hybrid Mutual Fund depends on the type of fund and the holding period.

• Equity portion: If the fund invests more than 65% of its equity assets, the gains will be taxed as equity gains. The tax on equity gains is as follows:
  • Short-term capital gains (STCG): If you sell your units within 36 months of purchase, you will be liable to pay STCG tax. The STCG tax is calculated at your marginal tax rate.
  • Long-term capital gains (LTCG): If you sell your units after 36 months of purchase, you will be liable to pay LTCG tax. The LTCG tax is currently capped at 10%.
• Debt portion: If the fund invests less than 65% of its assets in equity, then the gains will be taxed as debt gains. The tax on debt gains is as follows:
  • Short-term capital gains (STCG): If you sell your units within 36 months of purchase, you will be liable to pay STCG tax. The STCG tax is calculated at your marginal tax rate.
  • Long-term capital gains (LTCG): If you sell your units after 36 months of purchase, you will be liable to pay LTCG tax. The LTCG tax is currently 20%.

In addition to the above taxes, you may also have to pay a dividend distribution tax (DDT) on the dividends paid by the fund. The DDT is currently 28.325%.