{"id":12365,"date":"2022-06-10T17:51:49","date_gmt":"2022-06-10T12:21:49","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=12365"},"modified":"2022-09-30T11:06:18","modified_gmt":"2022-09-30T05:36:18","slug":"equity-savings-funds","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/equity-savings-funds\/","title":{"rendered":"Top Performing Equity Savings Funds in 2022"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69e73624ee0d3\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69e73624ee0d3\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Top_10_Equity_Savings_Funds_in_India_for_2022\" title=\"Top 10 Equity Savings Funds in India for 2022\">Top 10 Equity Savings Funds in India for 2022<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#How_Do_Equity_Savings_Funds_Work\" title=\"How Do Equity Savings Funds Work?\">How Do Equity Savings Funds Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Who_Should_Invest_in_Equity_Savings_Funds\" title=\"Who Should Invest in Equity Savings Funds?\">Who Should Invest in Equity Savings Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Advantages_of_Investing_in_Equity_Savings_Funds\" title=\"Advantages of Investing in Equity Savings Funds\">Advantages of Investing in Equity Savings Funds<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Portfolio_diversification\" title=\"Portfolio diversification\">Portfolio diversification<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Downside_protection\" title=\"Downside protection\">Downside protection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Profits_from_arbitrage\" title=\"Profits from arbitrage\">Profits from arbitrage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Tax_efficiency\" title=\"Tax efficiency\">Tax efficiency<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Risks_Associated_with_Investing_in_Equity_Savings_Funds\" title=\"Risks Associated with Investing in Equity Savings Funds\">Risks Associated with Investing in Equity Savings Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Things_to_Consider_before_Investing_in_Equity_Savings_Funds\" title=\"Things to Consider before Investing in Equity Savings Funds\">Things to Consider before Investing in Equity Savings Funds<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#What_are_hybrid_mutual_funds\" title=\"What are hybrid mutual funds?\">What are hybrid mutual funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Why_is_arbitrage_considered_a_low-risk_trading_activity\" title=\"Why is arbitrage considered a low-risk trading activity?\">Why is arbitrage considered a low-risk trading activity?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#_Are_equity_savings_funds_appropriate_for_retirees\" title=\"\u00a0Are equity savings funds appropriate for retirees?\">\u00a0Are equity savings funds appropriate for retirees?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/#Interested_in_how_we_think_about_the_markets\" title=\"Interested in how we think about the markets?\">Interested in how we think about the markets?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>Equity savings funds<span style=\"font-weight: 400;\"> are hybrid funds that invest in equities, debt instruments, and equity arbitrage positions. The equity component aims to deliver decent returns while the debt portion helps mitigate the volatility risks. These hybrid funds are ideal for investors with a moderate risk profile looking for capital appreciation.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\"><img loading=\"lazy\" class=\"size-large wp-image-13417 aligncenter\" src=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg\" sizes=\"(max-width: 640px) 100vw, 640px\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg 1024w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-300x98.jpg 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-768x250.jpg 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022.jpg 1080w\" alt=\"Online Fixed Deposits on Kuvera\" width=\"640\" height=\"209\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Top_10_Equity_Savings_Funds_in_India_for_2022\"><\/span>Top 10 Equity Savings Funds in India for 2022<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The following list of the ten best equity savings funds based on their 5-year returns.<\/span><\/p>\n<p>&nbsp;<\/p>\n<table style=\"width: 100%;\" border=\"1.5\">\n<tbody>\n<tr>\n<td><b>Name of the Mutual Fund<\/b><\/td>\n<td><b>5-Year Annualised Returns<\/b><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/sundaram-equity-saving-growth--SUQSZG-GR\"><span style=\"font-weight: 400;\">Sundaram Equity Savings Fund- Direct Plan-Growth Accumulation Plan<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">9.91%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/mahindra-manulife-flexi-cap-yojana-growth--MHMFCDG-GR\"><span style=\"font-weight: 400;\">Mahindra Manulife Equity Savings Dhan Sanchay Yojana- Direct Plan-Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">9.39%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/edelweiss-equity-saving-growth--EDEID1-GR\"><span style=\"font-weight: 400;\">Edelweiss Equity Savings Fund- Direct Plan- Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">9.14%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/kotak-equity-saving-growth--KO35D-GR\"><span style=\"font-weight: 400;\">Kotak Equity Savings Fund- Direct Plan-Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">9.09%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/axis-equity-saver-growth--AXESDG-GR\"><span style=\"font-weight: 400;\">Axis Equity Saver Fund- Direct Plan-Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">9.05%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/hdfc-equity-saving-growth--HDMULGT-GR\"><span style=\"font-weight: 400;\">HDFC Equity Savings Fund- Direct Plan-Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">8.52%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/sbi-equity-saving-growth--SBD473G-GR\"><span style=\"font-weight: 400;\">SBI Equity Savings Fund- Direct Plan- Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">8.48%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/app.kuvera.in\/explore\/mf\/l\/dsp-equity-saving-growth--DS835-GR\"><span style=\"font-weight: 400;\">DSP Equity Savings Fund- Direct Plan-Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">8.13%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/pgim-india-equity-saving-growth--PRMAD1-GR\"><span style=\"font-weight: 400;\">PGIM India Equity Savings Fund- Direct Plan- Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">8.13%<\/span><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/kuvera.in\/explore\/mf\/l\/icici-prudential-equity-saving-cumulative-growth--IC8758-GR\"><span style=\"font-weight: 400;\">ICICI Prudential Equity Savings Fund- Direct Plan- Growth<\/span><\/a><\/td>\n<td style=\"text-align: center;\"><span style=\"font-weight: 400;\">7.84%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: left;\"><i><span style=\"font-weight: 400;\">*Data as of May 30 2022,<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Find the direct plans of the best-performing equity savings funds on Kuvera. <\/span><a href=\"https:\/\/app.kuvera.in\/goals\"><span style=\"font-weight: 400;\">Create your financial goals<\/span><\/a><span style=\"font-weight: 400;\"> and get your investment plan with our calculator. <\/span><span style=\"font-weight: 400;\">Download the Kuvera app to discover <\/span><a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><span style=\"font-weight: 400;\">Direct Plans<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/app.kuvera.in\/explore\/fixed-deposit\/c\/all\"><span style=\"font-weight: 400;\">Fixed Deposits<\/span><\/a><span style=\"font-weight: 400;\">, and <\/span><a href=\"https:\/\/app.kuvera.in\/user\/login\"><span style=\"font-weight: 400;\">start investing today.<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The following sections will cover everything about hybrid funds. <\/span><span style=\"font-weight: 400;\">Read on to learn more.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_Do_Equity_Savings_Funds_Work\"><\/span>How Do Equity Savings Funds Work?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Equity savings schemes are open-ended hybrid funds that invest in equity, equity-related instruments, debt, and arbitrage opportunities. These are a relatively new type of <a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\/hybrid\">hybrid funds<\/a> introduced in 2017. According to SEBI&#8217;s circular, equity savings funds must invest at least 65% of their assets in equity and a minimum of 10% in fixed-income instruments.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">These hybrid funds have exposure to both equity and debt. The equity allocation helps to generate sufficient capital over a long-term investment horizon. Meanwhile, its fixed-income portion usually comprises high-quality debt instruments, which generate stable returns while minimizing interest rate risks.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\/hybrid\/equity-savings\">Equity savings schemes<\/a> also invest in arbitrage opportunities, where the fund capitalizes on price differences in the market. The fund manager of these funds can alter their asset allocation according to prevailing market conditions. This allows them to contain any losses while sustaining your purchasing power.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">A portion of the equity allocation (around 40-70% of total assets) is used to profit from risk-free arbitrage trades. The un-hedged or active equity allocation ranges from 20% to 30% and is the main contributor to capital appreciation. The fixed-income allocation ranges from 10% to 35% of the total portfolio.\u00a0\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>Around 70-80% of the total assets of these funds generate regular income with relatively low volatility. According to SEBI\u2019s regulations, equity savings mutual funds must state the minimum and maximum hedged\/un-hedged positions and defensive allocations in the Scheme Information Document (SID).<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In short, equity savings funds aim to reduce risks and volatility while delivering regular income. The low equity exposure means long-term growth potential but with limited risks. However, returns are much lower than other equity-oriented funds.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Who_Should_Invest_in_Equity_Savings_Funds\"><\/span>Who Should Invest in Equity Savings Funds?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The following investors may want to invest in these equity savings funds:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Conservative investors wanting equity exposure:<\/b><span style=\"font-weight: 400;\"> These funds suit conservative investors who fear losses from market volatility but want exposure to equities. These offer more returns than pure debt funds and fewer risks than pure equity funds.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investors looking for better alternatives to FDs:<\/b><span style=\"font-weight: 400;\"> These are ideal for investors who want to move away from traditional investments like fixed and recurring deposits. However, it is essential to remember that these funds carry market-linked risks.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Those with a medium-term investment horizon:<\/b> <b>Equity savings schemes<\/b><span style=\"font-weight: 400;\"> are ideal if you have a short-medium investment horizon. So, if you want to get sufficient returns for a short-term goal, you can choose these funds.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>New or inexperienced investors:<\/b><span style=\"font-weight: 400;\"> These funds can suit you if you are new to equity investments and averse to high risks. You can try to invest in equities through these funds without being subject to high volatility.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Advantages_of_Investing_in_Equity_Savings_Funds\"><\/span>Advantages of Investing in Equity Savings Funds<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The following is a list of benefits of investing in equity savings funds:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Portfolio_diversification\"><\/span>Portfolio diversification<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These hybrid funds have a diversified portfolio. While the equities allocation delivers moderate returns, the debt and arbitrage securities help minimise portfolio risk. So, instead of choosing many funds and tracking their performance, you can select equity savings funds to diversify your investments.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Downside_protection\"><\/span>Downside protection<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>Since the investments in equity savings schemes are spread across different asset classes, it mitigates the overall risk factor. Moreover, a part of the equity allocation is hedged and used to generate risk-free returns from arbitrage. These funds are appropriate for risk-averse investors who want to invest in equities.<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Profits_from_arbitrage\"><\/span>Profits from arbitrage<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Arbitrage involves buying securities from one market and selling them at another to profit from their price differences. As equity savings funds allocate assets to take advantage of arbitrage opportunities, they can generate considerable returns in volatile markets.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Tax_efficiency\"><\/span>Tax efficiency<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">These are more tax-efficient than debt funds as they let you benefit from the lower taxes applicable on equity funds. Long-term capital gains (LTCG) tax is applicable at a 10% rate if you hold these investments for over a year. However, if your total gains are below Rs. 1 lakh, you do not have to pay any tax.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Risks_Associated_with_Investing_in_Equity_Savings_Funds\"><\/span>Risks Associated with Investing in Equity Savings Funds<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Although the risks of investing in ESS are higher than debt funds, these offer higher growth and potential returns. However, their risks are much lower than pure equity and aggressive hybrid funds as these funds invest in debt securities and engage in risk-free arbitrage.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>Their diversification into different asset classes helps to reduce the risks of ESS further. Overall, the risk level associated with these funds is lower than most hybrid mutual funds, even though it is higher than most debt funds.<\/p>\n<p>&nbsp;<\/p>\n<p>That said, it is important to understand that returns from equity savings funds are not always predictable. If there are no arbitrage opportunities in the market, the scheme will need to invest in debt instruments, reducing the potential returns. Investors should also keep in mind that returns from the un-hedged equities portion entirely depend on the market.<\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">That is why it is important to perform due diligence before investing in these mutual funds.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Things_to_Consider_before_Investing_in_Equity_Savings_Funds\"><\/span>Things to Consider before Investing in Equity Savings Funds<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Here are some of the most important factors to check before investing in equity savings schemes:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Risks-returns analysis:<\/b><span style=\"font-weight: 400;\"> Before you invest in any mutual fund, you will want to check if you are comfortable with its risk levels. While risk-averse investors usually go for debt funds, those who are willing to take higher risks for higher returns can choose equity funds. Equity savings funds are ideal for those with moderate risk tolerance.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Past performance:<\/b><span style=\"font-weight: 400;\"> Studying the past performance will tell you how well the fund manager has operated it. You should check its returns across different market cycles. You will also want to compare the returns with the benchmark index and competitors.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Financial goals:<\/b> The top equity savings funds are those that will likely fulfill your financial goals. Before investing, make sure that the fund\u2019s past performance and objectives are in line with the expected returns and financial goals.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investment horizon:<\/b> As an ESS invests in stocks, you will want a minimum investment horizon of 12 months. These funds are ideal for a medium-term investment horizon, around 2-3 years for growing your investments. They also work well for a term of 5 years and more.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Role of the fund manager:<\/b><span style=\"font-weight: 400;\"> The fund managers of these funds have the flexibility to change asset allocations to suit market conditions. They also decide and execute the strategy to gain income from arbitrage. That is why you will want to check the fund manager\u2019s reputation, their experience, and track record before investing.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Expense ratio:<\/b><span style=\"font-weight: 400;\"> This is the commission charged by the AMC (Asset Management Company) for proper management of your<a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\/\"> mutual fund investments<\/a>. You will want to choose a fund charging a lower expense ratio as a higher charge will lower your potential returns.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>Final Word<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Equity savings funds are hybrid funds that invest in equities, debt, and arbitrage opportunities. They are ideal for risk-averse investors looking for higher income than debt funds or fixed deposits. These are relatively safe alternatives to pure equity and aggressive funds and are meant for those who do not like the volatility of equities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><b>Frequently Asked Questions<\/b><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"What_are_hybrid_mutual_funds\"><\/span>What are hybrid mutual funds?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Hybrid mutual funds invest in more than one asset class, usually equities and debt. Depending on the scheme&#8217;s investment objective, they can also invest in other asset classes like gold or real estate. Hybrid funds aim to provide better returns than debt funds while being less risky than equity funds.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Why_is_arbitrage_considered_a_low-risk_trading_activity\"><\/span>Why is arbitrage considered a low-risk trading activity?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Arbitrage trading is relatively risk-free because it involves buying and short-selling mispriced securities in the spot and futures market. As you trade the exact quantities of the same security, their prices converge before the futures expiry date, and you can book risk-free profit.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"_Are_equity_savings_funds_appropriate_for_retirees\"><\/span>\u00a0Are equity savings funds appropriate for retirees?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Although equities are risky, retirees may want to allocate a small portion of their portfolio towards them. This is because returns from fixed-income sources are usually not enough due to inflation throughout their retirement years. Equity savings funds are ideal for risk-averse investors who need extra income.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Interested_in_how_we_think_about_the_markets\"><\/span>Interested in how we think about the markets?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Zen And The Art Of Investing<\/strong><\/a><\/p>\n<p>Watch\/hear on YouTube:<\/p>\n<p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"EPF, PPF and VPF | Tax Saving Investments for Guaranteed Returns\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/dbxbBR7it10?list=PLDSzQdT9nLmBFD2p94O5p2pZ4vEUR-Thz\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"https:\/\/app.kuvera.in\/\">Kuvera.in<\/a> to discover <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\">Direct Plans<\/a> and <a href=\"https:\/\/app.kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a> and <a href=\"https:\/\/kuvera.in\/user\/login\">start investing today.<\/a><\/p>\n<p>#MutualFundSahiHai #KuveraSabseSahiHai!<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n\n<table id=\"tablepress-2103\" class=\"tablepress tablepress-id-2103\">\n<thead>\n<tr class=\"row-1 odd\">\n\t<th class=\"column-1\"><\/th><th class=\"column-2\">Top Asset Management Companies<\/th><th class=\"column-3\"><\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-hover\">\n<tr class=\"row-2 even\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/idfc\">IDFC Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/quant\">Quant Mutual Fund<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/canara\">Canara Robeco Mutual Fund<\/a><\/td>\n<\/tr>\n<tr class=\"row-3 odd\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/tata\">Tata Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/dsp\">DSP Mutual Fund<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/uti\">UTI Mutual Fund<\/a><\/td>\n<\/tr>\n<tr class=\"row-4 even\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/whiteoak\">Whiteoak Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/motilal\">Motilal Oswal Mutual Fund<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/mirae\">Mirae Asset Mutual Fund<\/a><\/td>\n<\/tr>\n<tr class=\"row-5 odd\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/icici\">ICICI Prudential Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/hdfc\">HDFC Mutual Fund<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/absl\">Aditya Birla Sunlife Mutual Fund<\/a><\/td>\n<\/tr>\n<tr class=\"row-6 even\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/barodabnpparibas\">Baroda BNP Paribas Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/invesco\">Invesco Mutual Funds<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/jm\">JM Financial Mutual Funds<\/a><\/td>\n<\/tr>\n<tr class=\"row-7 odd\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/tata\">Tata Mutual Funds<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/nippon\">Nippon Mutual Funds<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/franklin\">Franklin Templeton Mutual Funds<\/a><\/td>\n<\/tr>\n<tr class=\"row-8 even\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/sundaram\">Sundaram Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/edelweiss\">Edelweiss Mutual Funds<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/l_t\">L&amp;T Mutual Funds<\/a><\/td>\n<\/tr>\n<tr class=\"row-9 odd\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/axis\">Axis Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/kotak\">Kotak Mutual Fund<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/lic\">LIC Mutual Fund<\/a><\/td>\n<\/tr>\n<tr class=\"row-10 even\">\n\t<td class=\"column-1\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/dsp\">DSP Mutual Fund<\/a><\/td><td class=\"column-2\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/iifl\">IIFL Mutual Fund<\/a><\/td><td class=\"column-3\"><a href=\"https:\/\/kuvera.in\/explore\/funds\/parag\">Parag Parikh Mutual Funds<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-2103 from cache -->\n","protected":false},"excerpt":{"rendered":"<p>Equity savings funds are hybrid funds that invest in equities, debt instruments, and equity arbitrage positions. The equity component aims to deliver decent returns while the debt portion helps mitigate the volatility risks. These hybrid funds are ideal for investors with a moderate risk profile looking for capital appreciation.\u00a0 &nbsp; &nbsp; Top 10 Equity Savings [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":12366,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[99,822],"tags":[726,677,951,950,724,897],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Top Performing Equity Savings Funds in 2022 - Kuvera<\/title>\n<meta name=\"description\" content=\"Equity Savings Funds are hybrid mutual funds, which invest the total fund between equity,debt &amp; arbitrage. Equity Funds Provide better returns.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kuvera.in\/blog\/equity-savings-funds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Top Performing Equity Savings Funds in 2022 - Kuvera\" \/>\n<meta property=\"og:description\" content=\"Equity Savings Funds are hybrid mutual funds, which invest the total fund between equity,debt &amp; arbitrage. 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