Glossary· Tax
What is Equity-oriented fund?
A fund holding at least 65% Indian equity — the test that decides its tax treatment.
It is a tax definition, not a marketing one. Arbitrage and aggressive-hybrid funds are equity-oriented; fund-of-funds, gold, international and balanced-hybrid schemes are not, and are taxed under the separate non-equity rules.
For the formula and the constants behind this figure, see Methodology.
Guides that use Equity-oriented fund
12 guides put this term to work.
- Mutual funds vs fixed deposits: which risk are you willing to see?An FD hides its risk in purchasing power; a fund puts its risk on a screen daily. Where each genuinely wins, and why most households need both.
- Equity funds demystified: large cap, mid cap, small cap and the SEBI rulebookSince 2017 every open-ended scheme sits in one defined box with a binding rule on what it must hold. What the boxes mean, and why comparing across them fails.
- Hybrid and balanced advantage funds: the ultimate stress-free ride?Hybrids live where asset allocation meets the 65% tax line. How a BAF really works, what internal rebalancing is worth, and why net equity is what matters.
- ELSS: save tax while building wealth — if you are on the right regimeSection 80C exists only under the old regime, which turns “is ELSS worth it?” into a question about your tax regime rather than about the fund.
- ELSS vs PPF: same ₹1.5 lakh, two completely different productsThree years of lock-in against fifteen, equity risk against a notified rate, and a deduction that exists only on the old regime. Which one suits your money.
- International funds: diversifying beyond the economy you already earn inYour job, salary and property are already a bet on India. The case for global exposure, the RBI limits that close schemes, and the tax treatment that surprises.
- Fund of funds: what happens when a mutual fund buys mutual funds?Two expense layers and, usually, non-equity taxation with a 24-month clock. Where the wrapper earns its place, and where you pay twice for convenience.
- The art of asset allocation: it decides more than fund selection ever willHow much sits in equity matters more than which equity fund. Setting the split, rebalancing on bands rather than hunches, and not handing the gain back in tax.
- Mutual fund taxation decoded: short-term vs long-term capital gainsEquity, debt, hybrid and ELSS are taxed under different rules, and the rules changed twice in three years. What applies now, and to which of your units.
- Arbitrage funds: equity taxation on a trade with no market direction in itBoth legs hedged, so the risk is short-term-debt-like — but the equity-oriented label taxes gains at 20% and 12.5% where a liquid fund pays slab.
- Building a core-satellite portfolio with international exposureMost Indian portfolios are a single-country bet across salary, property and investments at once. How to size the sleeve, and the two frictions to plan for.
- Currency risk: the second bet inside every international fundA five-point move in the exchange rate can swing your return by ten points. Why unhedged is usually right, and why hedging costs an Indian investor.
More on tax
Indian capital-gains treatment as it applies to mutual fund redemptions. Rates are FY 2026-27 and exclude surcharge, cess and STT.