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Fund categories
Equity
Debt
Fund categories
Equity
Debt
Equity Savings Funds
Fund categories
HSBC Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
11.04%Min. Invest
₹5,000
AUM
₹1,016.10 Cr
WhiteOak Capital Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
7.89%Min. Invest
₹500
AUM
₹289.59 Cr
Tata Equity Saving Fund-Dir (App)
Equity | Equity Savings
1Y returns
7.54%Min. Invest
₹5,000
AUM
₹284.62 Cr
Edelweiss Equity Savings Fund-Dir (G)
Equity | Equity Savings
1Y returns
6.64%Min. Invest
₹100
AUM
₹1,365.19 Cr
Aditya Birla SL Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
4.83%Min. Invest
₹1,000
AUM
₹1,116.80 Cr
Kotak Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
4.21%Min. Invest
₹100
AUM
₹10,108.16 Cr
Mahindra Manulife Equity Savings Fund - Dir (G)
Equity | Equity Savings
1Y returns
4.12%Min. Invest
₹1,000
AUM
₹525.67 Cr
Bandhan Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
3.86%Min. Invest
₹1,000
AUM
₹390.33 Cr
Franklin India Equity Savings Fund - Dir (G)
Equity | Equity Savings
1Y returns
3.35%Min. Invest
₹5,000
AUM
₹619.80 Cr
Mirae Asset Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
3.26%Min. Invest
₹5,000
AUM
₹1,949.65 Cr
AXIS Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
2.93%Min. Invest
₹500
AUM
₹862.90 Cr
Baroda BNP Paribas Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
2.88%Min. Invest
₹5,000
AUM
₹274.41 Cr
Nippon India Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
2.74%Min. Invest
₹5,000
AUM
₹842.20 Cr
ICICI Pru Equity Savings Fund - Dir (G)
Equity | Equity Savings
1Y returns
2.49%Min. Invest
₹5,000
AUM
₹16,732.92 Cr
PGIM India Equity Savings Fund-Dir (G)
Equity | Equity Savings
1Y returns
2.48%Min. Invest
₹5,000
AUM
₹59.57 Cr
UTI-Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
2.42%Min. Invest
₹5,000
AUM
₹822.88 Cr
SBI Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
2.26%Min. Invest
₹1,000
AUM
₹5,642.66 Cr
DSP Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
1.89%Min. Invest
₹100
AUM
₹3,478.25 Cr
HDFC Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
1.69%Min. Invest
₹100
AUM
₹5,643.76 Cr
Union Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
1.49%Min. Invest
₹1,000
AUM
₹140.57 Cr
LIC MF Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
0.92%Min. Invest
₹5,000
AUM
₹35.10 Cr
Sundaram Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
0.05%Min. Invest
₹100
AUM
₹1,064.37 Cr
Invesco India Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
-2.59%Min. Invest
₹1,000
AUM
₹323.93 Cr
Quant Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
%Min. Invest
₹5,000
AUM
₹48.92 Cr
Bajaj Finserv Equity Savings Fund - Direct (G)
Equity | Equity Savings
1Y returns
%Min. Invest
₹500
AUM
₹36.73 Cr
What are Equity Savings Funds?
Equity Savings Funds are a kind of hybrid fund that provides stable returns with lower risk compared to pure equity funds. These mutual funds invest in a mix of debt and arbitrage opportunities. The equity portion targets capital appreciation, while the debt component offers stable income. Arbitrage opportunities take advantage of price differences in related securities, adding potential returns. This diversified strategy helps manage volatility while also offering quite higher returns than traditional debt funds.Features You Must Know When You Invest in Equity Savings Mutual Funds
These mutual funds represent a hybrid investment strategy that combines equity, debt, and arbitrage opportunities to generate stable returns.They are suitable for conservative investors seeking moderate growth.- Balanced Portfolio: These funds invest in a combination of equity strategies. The equity segment provides growth, debt offers stability, and arbitrage exploits market inefficiencies for extra returns.
- Lower Risk: Through diversifying into debt securities and arbitrage, these funds have lower volatility than pure equity funds. This makes them suitable for risk-averse investors.
- Tax Efficiency: These funds are treated as equity funds for tax purposes. They offer favorable long-term capital gains tax treatment. Gains above ₹1 lakh are taxed at 10%, while short-term gains are taxed at 15%.
- Regular Income: The equity debt and arbitrage portions can generate steady income. This makes these funds appealing to investors seeking stability along with growth potential.
How The Best Equity Savings Mutual Funds Work
Equity savings mutual funds operate with a three-part strategy: direct equity investments (30-40%), arbitrage opportunities through derivatives (25-35%), and debt instruments (30-35%). The equity portion aims for capital appreciation, arbitrage provides low-risk returns, and debt offers stability. Fund managers actively adjust these allocations based on market conditions to optimize returns while managing risk.Why Invest in the Best Equity Savings Funds?
These equity savings schemes offer a balanced investment approach suitable for conservative investors seeking equity exposure with lower volatility. They provide potential for higher returns than pure debt funds while maintaining lower risk than pure equity funds. The tax efficiency (equity taxation after 1 year) and monthly income potential make them attractive for investors seeking regular income with capital appreciation.Who Should Invest in Equity Savings Mutual Funds?
These funds are ideal for conservative investors who want some exposure to equities but prefer lower risk. These funds are suitable for those transitioning from fixed-income investments to equities. It is also great for retirees seeking steady income with moderate returns. With a balanced risk profile, these funds cater to individuals looking for tax-efficient growth in 3 to 5 years.Factors to Consider when you invest in Equity Savings Mutual Funds
Before investing in these funds, investors need to evaluate multiple aspects that influence fund performance and risk management capabilities. More importantly, evaluate if returns align with your investment goals.- Risk Profile: Assess your tolerance for risk. These funds offer moderate risk exposure by balancing equity and various arbitrage components.
- Investment Horizon: A 3 to 5 year investment horizon is recommended to maximize returns while managing volatility.
- Taxation: Equity Savings Funds are treated as equity funds for tax purposes. Hence, if the equity exposure exceeds 65%, it will offer favourable tax treatment on long-term gains.
- Fund Strategy: Review the fund’s approach to balancing its assets. This affects both returns and risk management.
Risks When You Invest in Equity Savings Funds
The equity portion (typically 30-40%) is subject to market volatility and can impact overall returns. Plus, when you invest in equity savings mutual funds, credit risk is also a possibility within the debt portion if bond issuers default. There can even be interest rate changes that can affect debt holdings. Moreover, the funds performance is heavily dependent on the manager's ability to balance these three components successfully.Taxation Rules When You Invest in Equity Savings Funds
These funds are generally treated as equity funds for tax purposes. Long-term capital gains are tax-free for the first ₹1 lakh and taxed at 10% above that threshold. Short-term gains (held less than 1 year) are taxed at 15%.FAQ’s
What is the minimum amount you should invest in equity savings funds?
There is no set minimum, but many funds require at least ₹500-1000 for initial investment. Check specific fund requirements as they vary.
Where do equity savings mutual funds make their investments?
These funds typically are invested in debt instruments, a mix of equity (stocks), and arbitrage opportunities to balance risk and returns.
How long should you keep your investments in the top equity savings funds?
Generally, it is recommended to invest in equity savings funds for at least 3-5 years. This is done to benefit from any potential market growth and tax efficiency.
Do equity savings funds have any constraints on asset allocation?
Yes, these funds must maintain at least 65% of their assets in equity or equity-related instruments. This is essential for it to qualify for equity taxation benefits.
Are equity savings scheme funds hazardous by nature?
These funds are considered moderate-risk investments, as they combine equity exposure with debt and arbitrage to manage overall portfolio risk.
What is an appropriate investment horizon for equity savings funds?
The suitable investment horizon for these funds is typically 3-5 years, allowing time for market fluctuations to smooth out and potential returns to materialize.
