Equity savings funds are mostly open-ended mutual fund plans that make investments in arbitrage, equities, derivatives and also debt securities for generating their returns. These equity saving mutual funds were launched as a new market segment sometime earlier and were called hybrid mutual funds. They aim at offering new opportunities to investors for earning good returns in a comparatively safer manner as compared to many other equity investment avenues. These funds are also eligible for taxation benefits which apply for equity mutual funds in general.
Equity saving schemes usually make investments in derivatives and equities and aim at maintaining 65% of equity exposure while the remainder is usually allotted for fixed income based securities. Naturally, these funds are often considered better options in comparison to fixed deposits since the latter will be taxed on the basis of the investor’s income tax slab. Equity savings funds- Key aspects worth knowing
Equity Savings Funds- What else should you know? Equity savings funds usually deploy investments in a fusion of debt and equity securities for enabling capital gains of investors. The investment blueprints are mostly reasonable and conservative to an extent for ensuring lower risk levels for the investment portfolio. Here are some other things that you should be aware of:
When it comes to choosing equity savings funds, do take a look at parameters like the past returns and performance of the specific fund in question, its assets under management (AUM), expense ratios and other factors.
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