Balanced hybrid funds: Mitigate risks and earn stable investment returns

Remember these funds have a limited track record currently; they will also not receive equity tax treatment

WhiteOak Capital Asset Management Company (AMC) has launched the new fund offer (October 5 to October 19) of its balanced hybrid fund. This is a nascent category with only one other fund that belongs to 360 ONE (asset under management is Rs 378 crore).

How does the category work?

According to the Securities and Exchange Board of India’s (Sebi) definition, balanced hybrid funds must maintain a 40-60 per cent allocation to equity and equity-related instruments.

Allocation to debt instruments can be in the same range. No arbitrage is permitted. A fund house is allowed to offer either an