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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

10 guides put this term to work.

More on tax

Indian capital-gains treatment as it applies to mutual fund redemptions. Rates are FY 2025-26 and exclude surcharge, cess and STT.

STCG
Gains on units sold before the holding period for long-term treatment is met.
LTCG
Gains on units held past the long-term threshold — 12.5% where it applies.
FIFO
The order units are treated as sold in when computing capital gains.