Equity Savings Fund- One Fund with the strength of Three

07 Dec 2023

Back to all Infographics

Equity Savings Fund- One Fund with the strength of Three

Equity Savings Funds generate returns via investments in equity, debt, and arbitrage opportunities, distinguishing them from other hybrid funds. The fund's overall equity exposure is partially hedged, mitigating volatility compared to an aggressive hybrid fund.

Equity Savings Fund Category Performance 10.5%7.4%9.7%8.3%8.3%

Source : Morningstar

Equity savings fund have historically delivered stable returns and are less volatile than pure equity funds due to diversification in three asset classes i.e Equity, Debt & Arbitrage and also enjoys equity taxation.

Features & Advantages of Equity Savings Funds

1. Equity Savings Funds have three components viz. equity, debt, arbitrage, each fulfilling a distinct role.

2. Equity savings fund tend to be less volatile than pure equity funds due to diversification in three asset classes.

3. The funds invest minimum 65% in Equity and equity related instruments and min 10% debt instruments and derivatives exporsure for hedging as mentioned in the SID.

4. Equities have potential to generate long-term inflation-beating returns.

5. The arbitrage component capitalizes on market price inconsistencies, offering low-risk returns and enhancing stability in fund performance.

6. The debt component can provide market-linked fixed income returns and potentially stabilize the portfolio in volatile markets.

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.

Read more

Popular Infographics

Tag Clouds

Related Infographics

  • Disclaimer

    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

Leave a Comment

Thanks for submitting your details.

Enhance Your Investment Strategy With Bond And Earnings Yields

Smart Investment Options For Retirees

Add this website to home screen

Are you Bank of Baroda Customer?

This is to inform you that by clicking on continue, you will be leaving our website and entering the website/Microsite operated by Insurance tie up partner. This link is provided on our Bank’s website for customer convenience and Bank of Baroda does not own or control of this website, and is not responsible for its contents. The Website/Microsite is fully owned & Maintained by Insurance tie up partner.

The use of any of the Insurance’s tie up partners website is subject to the terms of use and other terms and guidelines, if any, contained within tie up partners website.

Proceed to the website

Thank you for visiting www.bankofbaroda.in

We use cookies (and similar tools) to enhance your experience on our website. To learn more on our cookie policy, Privacy Policy and Terms & Conditions please click here. By continuing to browse this website, you consent to our use of cookies and agree to the Privacy Policy and Terms & Conditions.