After the Securities and Exchange Board of India's (Sebi) mutual fund recategorisation mandate has come into force, all balanced funds will now be officially known as hybrid funds.
Hybrid schemes are those that will invest in both equity and debt assets, in varying proportions. Not only has it created different categories of hybrid funds, it has also standardised the allocation mandate of these schemes. To a large extent, the move will not lead to considerable change in the fundamental attributes of the schemes, picking the right one based on one's goal and risk profile, may, however, become easier.
