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<h1>Definition of 'Specified Mutual Fund' Under Section 50AA: Invests 65%+ in Debt Instruments or Units of Similar Funds.</h1> A 'Specified Mutual Fund' under section 50AA of the Income Tax Act 1961 is defined as a mutual fund investing over 65% of its total proceeds in debt and money market instruments, or a fund investing 65% or more in units of such a mutual fund. The investment percentage is calculated based on the annual average of daily closing figures. Debt and money market instruments include any securities classified or regulated as such by the Securities and Exchange Board of India.