Equity Savings

About

Equity Savings Mutual Funds are hybrid schemes that aim to provide capital appreciation along with income and lower volatility. They invest in a mix of equity, arbitrage opportunities, and debt instruments.
These funds reduce market risk by hedging a portion of equity exposure through derivatives.

Fund Type

Hybrid

Key Features

Suitable for conservative equity investors.

Provides regular income potential + growth opportunity.

Lower volatility due to arbitrage and hedging strategies.

Tax-efficient structure (treated as equity fund for taxation).

Taxation

STCG

If Equity Allocation is ≥ 65% Holding Period ≤ 12 months, 20% Tax on Gain. Otherwise as per Income Tax slap

LTCG

If Equity Allocation is ≥ 65% Holding Period > 12 months, 12.5% Tax on Gain. Otherwise as per Income Tax slap

Dividends Tax

As Per Income tax slab rates, TDS of 10% may be deducted by the fund house if dividend income exceeds ₹5,000 in a financial year.

Exemption Limit

If Equity Allocation is ≥ 65%. 1.25 Lakh on LTCG in financial year

Indexation

No Indexation

Allocation

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Equity and Equity Instruments

65%

Debt Instruments

10%

Other

25%

*Actual allocation may vary by scheme

Locked in Period

Nill

Exit Load

Some schemes might charge an exit load of 1% if units are redeemed within 30 days. However, the exact structure may vary based on the specific scheme.

Risk Associated

*If Equity Allocation ≥ 65%

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.