Equity savings funds aim to generate returns from equities, arbitrage trades, and fixed income securities. To retain equity taxation, funds will restrict the fixed income (debt) exposure to 35 per cent. Besides, to reduce volatility and hedge the portfolio, these funds actively use derivative strategies.
Suitable for first time equity investor looking for low volatile equity fund.
10% Tax
after
1 Lakh capital gains
Returns above
Debt Funds
Short exit
load (1 yr)
Less
volatile