New Delhi, June 7 -- Capital gains taxation of mutual funds depends on how much the fund invests in equity and debt. Since hybrid funds have different equity-debt allocations, the tax treatment of their capital gains varies based on their portfolio allocation.

So, let's find out the taxation of different types of hybrid mutual funds.

Hybrid mutual funds invest in both equity and debt instruments, offering the growth potential of equities along with the stability of debt instruments. However, the allocation between equity and debt varies across different types of hybrid funds, in line with SEBI regulations.

The capital gains of mutual funds are dependent on how the fund is structured and for how long the investors hold the investments....