Tax on HYBRID fund

POSTED BY Jig ON June 14, 2012 5:09 pm COMMENTS (9)

I am investing in FT India PE Ratio FoF for more than 5 yr Horizon. I have some queries regarding the same.This fund investing in own AMC fund Franklin India bluechip & templeton Income fund accordingly PE ratio movement.

1. Should i continue with this fund or Switch to Same AMC Franklin India bluechip?
2. How different taxation in Hybrid compare to equity fund?


9 replies on this article “Tax on HYBRID fund”

  1. Jig says:

    Hello ,
    I have decided to move from Hybrid Debt fund to FIBC large cap fund. I have two option as below.
    1. STOP the SIP in hybrid fund and start fresh investment through SIP in FIBC fund
    For this i have to fill stop form manually as AMC website not providing STOP request online. So have to send form through courier( I am an NRI) is not much convenient option.

    2. Start STP from Hybrid Fund to FIBC fund which i can do online on AMC platfrom.

    How the Tax implication for more than 1 yr investment. ( i have investing in Hybrid fund since last 15 Months ).

    Please provide your inputs/comments which are most valuable to me.

  2. Jig says:

    Hello Dear,
    Can you please provide your suggestion/comment?

    1. Dear Jig, the fund in question is a debt fund from taxation angle & you being NRI – debt funds are not that much tax friendly due to TDS. Take note of this.

      To invest or not to invest ‘ll be a personal call.



  3. Jig says:

    Hello Ashal,
    Earlier we selected the MIP but then he suggest This hybrid fund which can good exposure to equity in good market value ( P/E) condtion. else in debt to protect downside.

    Well As i told, now i wana extend the investment period and so need help to stay with this one or switch to 100%diversified equity?


  4. Jig says:

    Hello Ashal,
    Earlier my plan was to remain invested in market fluctuations and period i tought was 3 yrs( for child school admission). My advisor suggest me to go with this fund which one part is invested in Franklin India Bluechip and other is money market. But now i wana invest this amount for longer period which add wealth for son marriage and other expenses for that. I can arrange admission fee from somehow ( My wife started earning)So i decide to review it.
    I am investing in this since last one year.

    I am confused as it will be treated as Debt fund. so should i move it completely to Franklin India bluechip or remain invested in this fund only?

    Can you please provide your view on better investing if any.


    1. Dear Jig, can you elaborate more on this advisor thing – what was the thought process, how the funds were selected for you…………….?



  5. Jig says:

    Thank you ashal,

    My other investments are as under:
    HDFC Top200:5000 pm
    IDFC premier : 3000pm
    QLTEF: 10000 pm( Next month start)

    Should i continue investing in mentioned fund ( FTI PE Ratio FoF)or should i move to Franklin India bluechip ( large cap) from that debt fund for long term investment ( Min 5 Yrs).


    1. Dear Jig, Why you are investing in this PE ratio FoF?



  6. Dear Jig, this fund in question is treated as debt fund from taxation point of view. So what ever tax rules are applicable for debt funds ‘ll be applied for this fund too.



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