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Equity Savings Mutual Funds

Equity savings funds are open-ended mutual fund schemes that fall under the Hybrid category introduced by the SEBI. These funds generate returns by investing in equity, debt, derivatives, and arbitrage. It is a relatively newer financial instrument in the Indian market and is considered safer than pure equity funds and more tax-efficient than pure debt funds. View More

The investment pattern these funds use sets them apart from traditional schemes. With equity savings schemes, about 30-35% of the assets are invested in equity while the remaining is put in debt funds and arbitrages. As they are a mix of segments, they help maximize returns while maintaining an efficient risk-reward ratio.

Diversification of investments helps neutralize market volatility to an extent. These funds are an excellent option for investors who generate high returns with minimum risk. They are also perfect for individuals seeking capital generation to meet their short-term goals.

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List of Equity Savings Mutual Funds

Filters
logo HSBC Equity Savings Fund - Direct Growth

4.84%

Fund Size (Cr.) - 655

Invest
logo Sundaram Equity Savings Fund - Direct Growth

7.24%

Fund Size (Cr.) - 1,116

Invest
logo Kotak Equity Savings Fund - Direct Growth

5.77%

Fund Size (Cr.) - 8,452

Invest
logo Invesco India Equity Savings Fund - Direct Growth

5.53%

Fund Size (Cr.) - 438

Invest
logo Edelweiss Equity Savings Fund-Dir Growth

9.12%

Fund Size (Cr.) - 750

Invest
logo SBI Equity Savings Fund - Direct Growth

6.41%

Fund Size (Cr.) - 5,738

Invest
logo Mirae Asset Equity Savings Fund - Direct Growth

7.29%

Fund Size (Cr.) - 1,574

Invest
logo UTI-Equity Savings Fund - Direct Growth

5.28%

Fund Size (Cr.) - 709

Invest
logo HDFC Equity Savings Fund - Direct Growth

5.06%

Fund Size (Cr.) - 5,674

Invest
logo Mahindra Manulife Equity Savings Fund - Dir Growth

5.25%

Fund Size (Cr.) - 552

Invest
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Who Should Invest in Equity Savings Mutual Funds?

Equity savings are low-risk mutual fund schemes that offer good returns over the short to medium term. Moreover, some of these even provide investors dividend incomes regularly. View More

Let us see what type of investors should consider these funds.

  • The ESS scheme has always remained popular among investors who look for low-risk equity funds. Equity savings funds are a more secure investment option with returns similar to equity schemes.
  • Investors with a short investment horizon looking for great returns to grow their capital should choose these funds. As they are low-risk, they also suit conservative investors in search of an alternative to conservative saving methods.
  • If you want to invest for less than two years for your investment, this type of fund can help you fulfill your investment goals. However, the ideal investment horizon is over one year to realize gains from these funds. It should also be noted that these funds are not an ideal substitute for equity funds as the latter gives better returns over the long term.

Popular Equity Savings Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 655
  • 3Y Return
  • 14.12%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 1,116
  • 3Y Return
  • 13.10%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 8,452
  • 3Y Return
  • 12.82%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 438
  • 3Y Return
  • 12.50%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 750
  • 3Y Return
  • 12.24%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 5,738
  • 3Y Return
  • 11.96%

  • Min SIP Investment Amt
  • ₹ ₹ 99
  • AUM (Cr.)
  • ₹ 1,574
  • 3Y Return
  • 11.92%

  • Min SIP Investment Amt
  • ₹ -
  • AUM (Cr.)
  • ₹ 709
  • 3Y Return
  • 11.41%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 5,674
  • 3Y Return
  • 11.24%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 552
  • 3Y Return
  • 11.21%

Other Calculators

FAQs

Investing in equity savings funds is relatively easy with 5Paisa. You can simply register online on the website or app of any online trading service and select the mutual fund you want to invest in. Next, you can select between lumpsum or SIP and complete your payment.

As these funds invest in a mix of debt, equity, and arbitrage instruments, they are suitable for the medium to long term. One should consider investing them for at least one year and longer to see profits

Equity savings funds invest money into three areas. The first is the equities that focus on portfolio diversification. The other part is invested in debt, which does not have a lot of credit or interest rate risk. The third part is arbitrage, where the objective is to generate returns by leveraging the mispricing opportunities in different markets.

Equity savings funds come from many fund houses, and the minimum investment amount varies according to the parent company and the fund. In general, the minimum amount for lumpsum investment is about INR 1000, while the minimum amount for SIP starts anywhere from INR 100. There is no upper limit for the amount you can invest in these mutual funds.

Investing in equity savings provides a dual advantage of income distribution and capital generation through a diversified portfolio. The fund actively uses hedged and unhedged strategies to manage risk and increase returns. This approach also helps deal with volatility and uncertainty in the stock market.

As mandated by the SEBI, equity savings schemes should invest a minimum of 65% of the total assets in equity, including the arbitrage positions, while at least 10% should go into debt instruments. According to the regulations, a fund in this category can invest in equity and related securities, debt instruments, and arbitrage opportunities using hedging strategies.

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