Equity Saving Fund is an open ended scheme investing in equity, arbitrage and debt. Per SEBI at least 65% of the fund's assets are required to be invested into equities. Use of derivatives reduces net equity exposure (around 20-40 percent, although it may vary from fund to fund) and consequently protects investors from volatility of returns. Further, since equity savings funds have gross equity exposure (without considering derivatives) of more than 65 percent, they are treated at par with equity funds for taxation.
Invest in Best Hybrid Equity Savings Funds
Equity Saving Fund is an open ended scheme investing in equity, arbitrage and debt. Per SEBI at least 65% of the fund's assets are required to be invested into equities. Use of derivatives reduces net equity exposure (around 20-40 percent, although it may vary from fund to fund) and consequently protects investors from volatility of returns. Further, since equity savings funds have gross equity exposure (without considering derivatives) of more than 65 percent, they are treated at par with equity funds for taxation.
Equity Savings funds are suitable for conservative investors, who seek moderate exposure to equity. Investors with a short time frame (1-3 years), like those approaching retirement could invest in equity savings funds to achieve their wealth creation goals, without running the risk of volatility in equity markets eroding their capital.
Short investment horizon of 3-5 years
You can click on the link in Jama.co.in and choose the desired fund. You can also take your free risk profile assessment which then advises you on the percentage asset allocation you should have in. Click on invest button from there and continue to make the investment.
Invest only in direct plans of small cap funds and take the advice of a SEBI Registered Investment advisor to invest in the right funds.