Best Equity Savings Funds – Equity Savings Funds

The below table shows a list Of the Best Equity Savings Funds Based on AUM, NAV and minimum SIP.

Introduction to Best Equity Savings Funds

ICICI Pru Equity Savings Fund

ICICI Prudential Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 9 years and 10 months, having been launched on 18/11/2014.

ICICI Pru Equity Savings Fund as a credit risk fund, manages assets valued at ₹10938.68 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 9.61%. This fund has an exit load of 0.25% and an expense ratio of 0.5%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at 18.33%, Debt at 17.03% and Other at 64.64 %.

Kotak Equity Savings Fund

Kotak Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 10 years, having been launched on 17/09/2014.

Kotak Equity Savings Fund as a credit risk fund, manages assets valued at ₹6540.74 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 13.66%. This fund has an exit load of 1% and an expense ratio of 0.66%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at 33.42%, Debt at 18.63% and Other at 47.95%.

SBI Equity Savings Fund

SBI Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 9 years and 4 months, having been launched on 11/05/2015.

SBI Equity Savings Fund as a credit risk fund, manages assets valued at ₹5088.38 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 13.14%. This fund has an exit load of 0.1% and an expense ratio of 0.66%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at 31.24%, Debt at 25.22% and Other at 43.54%.

HDFC Equity Savings Fund

HDFC Equity Savings Fund is an Equity Savings mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 20 years, having been launched on 17/09/2004.

HDFC Equity Savings Fund as a credit risk fund, manages assets valued at ₹4872.62 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 13.17%. This fund has an exit load of 1% and an expense ratio of 0.94%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at 65.83%, Debt at 23.49%, and Other at 10.68%.

DSP Equity Savings Fund

DSP Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from DSP Mutual Fund. This fund has been in existence for 8 years and 6 months, having been launched on 08/03/2016.

DSP Equity Savings Fund as a credit risk fund, manages assets valued at ₹1735.40 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 12.48%. This fund has no exit load and an expense ratio of 0.45%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at 28.1%, Debt at 23.74% and Other at 48.16%.

Mirae Asset Equity Savings Fund

Mirae Asset Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for 5 years and 9 months, having been launched on 26/11/2018.

Mirae Asset Equity Savings Fund as a credit risk fund, manages assets valued at ₹1188.86 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 14.53%. This fund has an exit load of 1% and an expense ratio of 0.34%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at  36.44%, Debt at 21.62% and Other at 41.93%.

Axis Equity Saver Fund

Axis Equity Saver Fund Direct-Growth is an Equity Savings mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 9 years and 1 month, having been launched on 27/07/2015.

Axis Equity Saver Fund as a credit risk fund, manages assets valued at ₹982.84 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 12.73%. This fund has an exit load of 1% and an expense ratio of 1.03%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at 39.68%, Debt at 27.16% and Other at 33.16%.

Sundaram Equity Savings Fund

Sundaram Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from Sundaram Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013. 

Sundaram Equity Savings Fund as a credit risk fund, manages assets valued at ₹926.21 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 15.6 %. This fund has an exit load of % and an expense ratio of 0.52%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at 42.97%, Debt at 16.85% and Other at 40.18%.

Franklin India Equity Savings Fund

Franklin India Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been in existence for 6 years and 1 month, having been launched on 03/08/2018.

Franklin India Equity Savings Fund as a credit risk fund, manages assets valued at ₹671.3 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 10.81%. This fund has no exit load and an expense ratio of 0.31%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at  16.65%, Debt at 32.2% and Other at 51.15%.

Aditya Birla SL Equity Savings Fund

Aditya Birla Sun Life Equity Savings Fund Direct-Growth is an Equity Savings mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 9 years and 10 months, having been launched on 11/11/2014.

Aditya Birla SL Equity Savings Fund as a credit risk fund, manages assets valued at ₹589.65 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 10.73%. This fund has an exit load of 0.25% and an expense ratio of 0.61%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises Equity at  16.39%, Debt at 22.99% and Other at 60.62%.

What Is an Equity Savings Fund?

An Equity Savings Fund is a type of mutual fund that invests in a mix of equities, debt and arbitrage opportunities. This blend aims to offer a balanced approach by combining the growth potential of stocks with the stability of fixed-income securities.

These funds typically allocate a significant portion to equities for capital appreciation and a portion to debt instruments for income and lower volatility. Arbitrage opportunities may also be used to exploit market inefficiencies, providing additional returns.

Equity Savings Funds are designed for investors seeking a moderate risk-return profile. They offer potential growth from equities while mitigating risk through the fixed-income component, making them suitable for those wanting a balanced investment approach.

Features of the Best Equity Savings Fund India

The main features of the best Equity Savings Fund in India include a balanced mix of equities and fixed-income securities, professional fund management, tax efficiency and low volatility. These features aim to provide steady returns with controlled risk.

• Balanced Mix of Equities and Fixed-Income Securities: The fund invests in a combination of equities and debt instruments, aiming to balance potential returns with risk reduction by providing exposure to both growth and income-generating assets.
• Professional Fund Management: Experienced managers actively handle the fund’s asset allocation, adjusting investments based on market conditions to optimize performance and manage risk, ensuring that the portfolio aligns with the fund’s objectives.
• Tax Efficiency: Equity Savings Funds benefit from favourable tax treatment on long-term capital gains. The fund structure allows for tax-efficient growth, which can enhance overall returns for investors in the long term.
• Low Volatility: The mix of equities and debt securities aims to reduce portfolio volatility compared to pure equity funds. This helps in providing more stable returns and minimizing the impact of market fluctuations.

Top Equity Savings Funds Based on Expense Ratio

The table below shows the Best-performing Equity Savings Funds Based on the highest to lowest expense ratio.

Best Equity Savings Funds Based on 3Y CAGR

The table below shows the Best Equity Savings Funds Based on the Highest 3Y CAGR.

List Of Equity Savings Funds Based on Exit Load

The table below shows the performing Equity Savings Funds In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Equity Savings Fund returns

The table below shows Equity Savings Funds Returns Based on 1Y return

Historical Performance of Equity Savings Funds

The table below shows the Historical Performance Of Equity Savings Funds based on 5Y return

Factors to Consider When Investing in Equity Savings Funds

The main factors to consider when investing in Equity Savings Funds include your investment objectives, risk tolerance, fund performance and expense ratio. These elements help ensure the fund aligns with your financial goals and offers suitable returns.

• Investment Objectives: Align the fund with your specific financial goals, such as capital appreciation or steady income. Ensure that the fund’s strategy matches your long-term investment aims and time horizon.
• Risk Tolerance: Assess your comfort level with market fluctuations. Equity Savings Funds offer a balance of equities and fixed-income securities, but understanding how much risk you can handle is crucial for selecting the right fund.
• Fund Performance: Review the fund’s historical performance and compare it to peers. Consistent returns and effective management are indicators of a well-performing fund that can meet your expectations.
• Expense Ratio: Evaluate the fund’s expense ratio, which includes management fees and other costs. Lower fees can enhance net returns, so choose a fund with reasonable charges that do not erode your investment gains.

How to Invest in Top Equity Savings Funds?

To invest in top Equity Savings Funds, start by researching and comparing funds based on performance, manager expertise and expense ratios. Look for funds with a consistent track record and strategic asset allocation that aligns with your financial goals.

Next, open an account with  Alice Blue. Complete the required documentation and KYC process to establish your investment account. Ensure you understand the fund’s features and investment strategy before proceeding.

Finally, decide on your investment amount and choose between a lump sum or a Systematic Investment Plan (SIP). Regularly review the fund’s performance and adjust your investment as needed to stay aligned with your financial objectives.

Impact of Market Trends on Top Equity Savings Funds

Market trends significantly impact Equity Savings Funds by influencing their equity and fixed-income components. Bullish markets can boost returns from equities, while bearish trends may lead to lower returns but less impact on the fund’s overall stability due to fixed-income securities.

Interest rate movements also affect these funds. Rising rates can negatively impact the fixed-income portion, reducing overall returns. Conversely, declining rates can enhance bond performance, potentially improving fund returns and stabilizing performance during fluctuating market conditions.

How Equity Savings Funds Perform in Volatile Markets?

In volatile markets, Equity Savings Funds typically offer more stability than pure equity funds due to their fixed-income component. The presence of debt securities helps cushion against sharp market declines, reducing overall portfolio volatility.

These funds also benefit from diversification across equities and debt. During market turbulence, the fixed-income portion can provide steady returns, while the equity component aims for growth, helping to balance performance and mitigate the impact of market swings.

Advantages of Investing in Equity Savings Funds

The main advantages of investing in Equity Savings Funds include balanced risk and return, professional management, tax efficiency and lower volatility compared to pure equity funds. These benefits help achieve steady growth while managing potential risks effectively.

• Balanced Risk and Return: By investing in both equities and fixed-income securities, Equity Savings Funds aim to provide a balance between growth potential and risk reduction, offering more stable returns compared to funds focused solely on equities.
• Professional Management: Fund managers actively manage the portfolio, making strategic investment decisions based on market conditions. Their expertise helps optimize returns and navigate market fluctuations, ensuring that the fund meets its investment objectives.
• Tax Efficiency: Equity Savings Funds benefit from favourable tax treatment on long-term capital gains. The tax advantages enhance overall returns, making the fund a tax-efficient investment option for those seeking growth and income.
• Lower Volatility: The inclusion of fixed-income securities helps reduce the fund’s volatility compared to pure equity funds. This results in more stable performance and less susceptibility to market swings, appealing to risk-averse investors.

Risks of Investing in Equity Savings Funds

The main risks of investing in Equity Savings Funds include market risk, interest rate risk, manager risk and limited capital appreciation. These risks can impact fund performance and may result in lower-than-expected returns or potential losses.

• Market Risk: The equity component is exposed to market fluctuations. Adverse market conditions can negatively impact the fund’s performance, leading to potential losses despite the fixed-income allocation.
• Interest Rate Risk: Changes in interest rates can affect the fixed-income portion of the fund. Rising rates can lead to lower bond prices, impacting the overall returns and stability of the fund.
• Manager Risk: The fund’s performance heavily relies on the expertise of the fund manager. Poor investment decisions or ineffective management can lead to suboptimal returns and increased risk.
• Limited Capital Appreciation: While offering lower volatility, Equity Savings Funds may provide limited capital appreciation compared to pure equity funds. The fixed-income component can cap the fund’s growth potential, impacting long-term gains.

Contribution of Equity Savings Funds to Portfolio Diversification

Equity Savings Funds contribute to portfolio diversification by investing in a mix of equities, debt and arbitrage opportunities. This balanced approach reduces reliance on a single asset class, mitigating risk and smoothing out returns across different market conditions.

By combining equities with fixed-income securities, these funds provide exposure to various market segments. This diversification helps in stabilizing portfolio performance, as losses in one asset class can be offset by gains in another, enhancing overall risk management and return stability.

Who Should Invest in Equity Savings Funds India?

Equity Savings Funds are ideal for conservative investors seeking a balance between growth and stability. They suit those who want equity exposure but with reduced volatility, as these funds combine equities with fixed-income securities for a more stable investment approach.

These funds are also suitable for investors looking for tax-efficient growth. With favourable tax treatment on long-term gains and lower risk compared to pure equity funds, they appeal to individuals seeking moderate returns with a focus on capital preservation.

Impact of Fund Manager Expertise on Equity Savings Funds Performance

Fund manager expertise significantly impacts Equity Savings Funds’ performance. Skilled managers make strategic decisions on asset allocation between equities and fixed-income securities, adjusting based on market conditions to optimize returns and manage risks effectively.

Experienced managers also employ tactical strategies to capitalize on market opportunities and mitigate potential losses. Their ability to navigate economic fluctuations and select high-quality investments can enhance the fund’s performance and stability, leading to better outcomes for investors.

How Much Money Should I Invest In Equity Savings Funds?

The amount to invest in Equity Savings Funds depends on your financial goals, risk tolerance and investment horizon. Allocate a portion of your portfolio that aligns with your overall strategy, ensuring it supports your objectives while balancing risk and return.

Start with a modest investment to gauge performance and gradually increase based on comfort and fund performance. Consulting a financial advisor can help determine the appropriate amount, considering your income, expenses, and long-term financial plans.

Equity Savings Fund Taxation

Equity Savings Funds are taxed based on their equity exposure. If the fund invests more than 65% in equities, it is treated like an equity fund, with long-term capital gains over one year taxed at 10% and short-term gains at 15%.

If the equity exposure is below 65%, the fund is considered a debt fund for tax purposes. Long-term gains (over three years) are taxed at 20% with indexation benefits, while short-term gains are taxed at the investor’s income tax slab rate.

FAQs – List Of Equity Savings Funds

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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.