From April 1, 2023, the long-term capital gains tax (LTCG) and indexation benefits for mutual funds that invest less than 35% in equity will be no longer available, as per the amendment in the latest Finance Bill. But, you will continue to get LTCG and indexation benefits on schemes that invest 35-65% in equities. Currently, only 9 schemes have done this. SEBI introduced a category called Balanced Hybrid funds (BHF) that can invest 40-60% in equity. But, no schemes have been classified as BHF so far. There is the condition that fund houses can have either BHF or aggressive hybrid funds, as per the regulation. Time will tell how this category will emerge going ahead, given the new tax benefits.