360 ONE launches first balanced hybrid scheme in mutual fund space

Fund to maintain a minimum 40 per cent allocation in equity and debt

360 ONE on Monday launched the first Balanced Hybrid fund in the mutual fund space. The scheme will be similar to a balanced advantage fund (BAFs), except that the fund manager will have to maintain a minimum 40 per cent allocation in both equity and debt. In BAFs, fund managers have full flexibility, that is, the equity or debt allocation can range anywhere between 0-100 per cent.

Considering the fund structure, the 360 ONE Balanced Hybrid Fund will qualify for erstwhile debt taxation if units are held for over three years. The returns will be taxed at 20 per cent along with indexation benefits.

There are already a few solution-oriented schemes in the balanced hybrid category.

Only a few fund houses have the option to launch a Balanced Hybrid fund, given that the mutual fund regulations allow fund houses to launch only one among these two hybrid schemes — balanced hybrid and aggressive hybrid. Most fund houses already have an aggressive hybrid scheme.

WhiteOak Capital MF has also filed for a balanced hybrid scheme.