If you’re looking for a mutual fund that combines growth potential with stability, Equity Savings Funds might be the right choice. These funds use a mix of equity, debt, and arbitrage strategies to deliver moderate returns while reducing risk. Unlike pure equity funds, they aim to cushion market volatility by balancing stock exposure with fixed-income instruments.
Equity savings funds are ideal for investors who want better returns than traditional debt funds but are not comfortable with full equity exposure. They work well for medium-term goals and can be a good entry point for conservative investors exploring equity markets.
Impact of BSE Holidays on Equity Savings Funds
Since these funds invest partly in stocks, their performance can be influenced by trading days and market activity. On BSE holidays, when the stock market is closed, equity transactions and arbitrage opportunities pause. However, the debt portion of the fund continues to accrue interest, so the impact is minimal for long-term investors. Still, if you plan to redeem or invest, it’s wise to check the holiday calendar to avoid delays in processing.
Returns and Taxation
Equity savings funds typically offer returns in the range of 7–9% annually, depending on market conditions. For taxation, they are treated as equity-oriented funds if equity exposure exceeds 65%. Short-term capital gains (less than one year) are taxed at 15%, while long-term gains (beyond one year) are taxed at 10% after an exemption limit.
Equity savings funds provide a balanced approach for those seeking moderate risk and steady returns. While BSE holidays may temporarily affect equity transactions, they don’t significantly impact long-term performance. For investors who want a mix of growth and stability, these funds are a smart choice.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.