Equity Savings funds typically invest in derivative strategies to bring up their equity component to 65 percent, to retain their tax advantage. But they also invest in equities for the long run. Here are their top smallcap bets
Equity savings funds are no substitute to debt funds, but can be appealing to investors looking for relatively stable returns with low exposure to equity and the benefit of equity taxation.
Touted as a tax-friendly option to a mutual fund monthly income scheme, equity savings funds have given volatile returns. And high expense ratios haven't helped either