HDFC Prudent Fund

HDFC Prudence Fund was an equity-oriented hybrid scheme or balance scheme that is considered as an equity scheme for the purpose of taxation. Investments in equity schemes held over a year qualify for long-term capital gains tax of 10 per cent.
Balanced advantage funds may be treated as non-equity schemes if their equity holdings fall below 65 per cent over a prolonged period, according the notice. If investments in debt schemes are held for more than three years, they qualify for long-term capital gains tax of 20 per cent with indexation benefit.