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Equity savings funds fall under the hybrid category of Mutual Funds. This is the latest type of Asset Allocation mutual funds introduced in late 2014. Equity savings funds invest in arbitrage, equity and debt. This fund will invest at least 65 percent of its total assets in equities (most of it in arbitrage) and rest in debt instruments, but the minimum investment in debt should be 10 percent. Equity savings funds are getting popular amongst investors who want to invest in equities yet at the same time want to be safe. So, let’s learn about this fund, along with some of the best performing equity savings funds to invest.
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Equity savings funds seek to generate stable Income by Investing in debt instruments and aims for potentially higher returns through equity investments. Thus, these funds act as a balancing equation between both risk and return.
Ideally, arbitrage takes advantage of the difference in prices of shares in the cash and derivatives Market. Use of derivatives reduces net equity exposure (i.e., ideally 20-40 percent, though this may vary fund to fund) and usually protects investor from unstable returns.
Since, equity savings funds have 65 percent of equity exposure (without considering derivatives), they are treated under Equity Mutual Funds taxation. Equity savings funds are considered to be an ideal investment option for conservative investors who want to invest for a short-term i.e., for 1-3 years.
Investors planning to invest in these funds should take a SIP route as this eliminates the worry of timing the market. Post-retirement you can use SWP (Systematic Withdrawal Plan) option to enable pre-determine withdrawals at a periodic interval.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) L&T Equity Savings Fund Growth ₹31.0466
↓ -0.47 ₹646 -4.8 -2.9 10.3 10.5 11.3 24 Kotak Equity Savings Fund Growth ₹24.6858
↓ -0.18 ₹8,177 -1.5 -1.2 6.5 10 10.4 11.7 Principal Equity Savings Fund Growth ₹66.7754
↓ -0.33 ₹1,051 -0.8 0.6 9.6 9.8 12.5 12.6 Edelweiss Equity Savings Fund Growth ₹23.8889
↓ -0.13 ₹561 0.4 2 9.8 9.2 10.2 13.4 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Feb 25 Equity Savings
funds having AUM/Net Assets above 100 Crore
. Sorted on Last 3 Year Return
.
To generate regular income by predominantly investing in arbitrage opportunities in the cash and derivatives segments of the equity markets and debt and money market instruments and to generate long-term capital appreciation through unhedged exposure to equity and equity related instruments. L&T Equity Savings Fund is a Hybrid - Equity Savings fund was launched on 18 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for L&T Equity Savings Fund Returns up to 1 year are on The investment objective of the scheme is to generate capital appreciation and income by predominantly investing in arbitrage opportunities in the cash and derivatives segment of the equity market, and enhance returns with a moderate exposure in equity & equity related instruments.There is no assurance or guarantee that the investment objective of the scheme will be achieved. Kotak Equity Savings Fund is a Hybrid - Equity Savings fund was launched on 13 Oct 14. It is a fund with Moderately High risk and has given a Below is the key information for Kotak Equity Savings Fund Returns up to 1 year are on The investment objective of the Scheme is to provide capital
appreciation and income distribution to the investors by using
equity and equity related instruments, arbitrage opportunities, and
investments in debt and money market instruments Principal Equity Savings Fund is a Hybrid - Equity Savings fund was launched on 23 May 02. It is a fund with Moderately High risk and has given a Below is the key information for Principal Equity Savings Fund Returns up to 1 year are on (Erstwhile Edelweiss Equity Savings Advantage Fund) "The investment objective of the scheme is to provide capital appreciation and income distribution tothe investors by using equity and equity related instruments, arbitrage opportunities, and investments
in debt and money market instruments" Edelweiss Equity Savings Fund is a Hybrid - Equity Savings fund was launched on 13 Oct 14. It is a fund with Moderately High risk and has given a Below is the key information for Edelweiss Equity Savings Fund Returns up to 1 year are on 1. L&T Equity Savings Fund
CAGR/Annualized
return of 8.9% since its launch. Ranked 46 in Equity Savings
category. Return for 2024 was 24% , 2023 was 17% and 2022 was 2% . L&T Equity Savings Fund
Growth Launch Date 18 Oct 11 NAV (11 Feb 25) ₹31.0466 ↓ -0.47 (-1.48 %) Net Assets (Cr) ₹646 on 31 Dec 24 Category Hybrid - Equity Savings AMC L&T Investment Management Ltd Rating ☆☆ Risk Moderately High Expense Ratio 1.49 Sharpe Ratio 2.75 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,843 31 Jan 22 ₹12,710 31 Jan 23 ₹12,902 31 Jan 24 ₹15,492 31 Jan 25 ₹17,478 Returns for L&T Equity Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month -6.2% 3 Month -4.8% 6 Month -2.9% 1 Year 10.3% 3 Year 10.5% 5 Year 11.3% 10 Year 15 Year Since launch 8.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 24% 2022 17% 2021 2% 2020 16.1% 2019 10.8% 2018 3.7% 2017 -0.6% 2016 13.8% 2015 4.6% 2014 5.1% Fund Manager information for L&T Equity Savings Fund
Name Since Tenure Kapil Punjabi 1 May 24 0.76 Yr. Mahesh Chhabria 15 Jul 23 1.55 Yr. Praveen Ayathan 1 Oct 23 1.34 Yr. Cheenu Gupta 2 Jul 21 3.59 Yr. Sonal Gupta 1 Oct 23 1.34 Yr. Abhishek Gupta 1 Apr 24 0.84 Yr. Hitesh Gondhia 1 Oct 23 1.34 Yr. Data below for L&T Equity Savings Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 40.87% Equity 41.75% Debt 17.37% Equity Sector Allocation
Sector Value Financial Services 25.29% Industrials 20.6% Consumer Cyclical 8.72% Technology 5.46% Real Estate 3.18% Energy 2.71% Basic Materials 2.53% Health Care 2.12% Utility 0.98% Consumer Defensive 0.02% Debt Sector Allocation
Sector Value Cash Equivalent 35.77% Government 14.11% Corporate 8.37% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Transformers & Rectifiers (India) Ltd (Industrials)
Equity, Since 31 Jan 24 | TARIL4% ₹27 Cr 240,866 Future on IndusInd Bank Ltd
Derivatives | -3% -₹22 Cr IndusInd Bank Ltd (Financial Services)
Equity, Since 31 Aug 24 | INDUSINDBK3% ₹22 Cr 232,500
↑ 106,500 Future on State Bank of India
Derivatives | -3% -₹22 Cr State Bank of India (Financial Services)
Equity, Since 31 Aug 24 | SBIN3% ₹22 Cr 278,250
↑ 81,000 Trent Ltd (Consumer Cyclical)
Equity, Since 29 Feb 24 | 5002513% ₹20 Cr 28,000 Future on City Union Bank Ltd
Derivatives | -3% -₹20 Cr City Union Bank Ltd (Financial Services)
Equity, Since 31 Oct 24 | CUB3% ₹20 Cr 1,135,000 Kaynes Technology India Ltd (Industrials)
Equity, Since 30 Sep 23 | KAYNES3% ₹19 Cr 26,000 CG Power & Industrial Solutions Ltd (Industrials)
Equity, Since 30 Jun 23 | 5000933% ₹18 Cr 250,000
↑ 50,000 2. Kotak Equity Savings Fund
CAGR/Annualized
return of 9.1% since its launch. Return for 2024 was 11.7% , 2023 was 15.7% and 2022 was 6.8% . Kotak Equity Savings Fund
Growth Launch Date 13 Oct 14 NAV (11 Feb 25) ₹24.6858 ↓ -0.18 (-0.71 %) Net Assets (Cr) ₹8,177 on 31 Dec 24 Category Hybrid - Equity Savings AMC Kotak Mahindra Asset Management Co Ltd Rating Risk Moderately High Expense Ratio 1.88 Sharpe Ratio 0.98 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,951 31 Jan 22 ₹12,375 31 Jan 23 ₹13,070 31 Jan 24 ₹15,305 31 Jan 25 ₹16,667 Returns for Kotak Equity Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month -1.2% 3 Month -1.5% 6 Month -1.2% 1 Year 6.5% 3 Year 10% 5 Year 10.4% 10 Year 15 Year Since launch 9.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 11.7% 2022 15.7% 2021 6.8% 2020 11.1% 2019 10.4% 2018 7.8% 2017 4.2% 2016 14% 2015 6.5% 2014 6.4% Fund Manager information for Kotak Equity Savings Fund
Name Since Tenure Abhishek Bisen 13 Oct 14 10.31 Yr. Devender Singhal 1 Apr 21 3.84 Yr. Hiten Shah 3 Oct 19 5.34 Yr. Data below for Kotak Equity Savings Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 52.18% Equity 34.52% Debt 12.41% Other 0.88% Equity Sector Allocation
Sector Value Financial Services 14.42% Consumer Cyclical 11.47% Communication Services 9.04% Utility 6.46% Basic Materials 6.32% Industrials 5.54% Consumer Defensive 4.89% Energy 4.42% Technology 3.43% Health Care 1.13% Real Estate 0.34% Debt Sector Allocation
Sector Value Cash Equivalent 46.08% Corporate 11.98% Government 6.24% Securitized 0.29% Credit Quality
Rating Value AA 10.05% AAA 89.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kotak Liquid Dir Gr
Investment Fund | -5% ₹373 Cr 724,439 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Jun 24 | 5348164% ₹351 Cr 10,267,098
↑ 8,246,098 Bharti Airtel Ltd (Communication Services)
Equity, Since 31 Oct 17 | BHARTIARTL4% ₹302 Cr 1,901,880
↑ 2,375 HDFC Bank Ltd.-JAN2025
Derivatives | -3% -₹258 Cr 1,447,050
↑ 1,447,050 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 14 | HDFCBANK3% ₹257 Cr 1,447,050 Bharti Airtel Ltd-JAN2025
Derivatives | -3% -₹256 Cr 1,600,750
↑ 1,600,750 Indus Towers Ltd.-JAN2025
Derivatives | -3% -₹241 Cr 7,031,200
↑ 7,031,200 Kotak Money Market Dir Gr
Investment Fund | -3% ₹235 Cr 539,363 Maruti Suzuki India Ltd (Consumer Cyclical)
Equity, Since 31 Oct 14 | MARUTI3% ₹225 Cr 207,638 Vedanta Ltd.-JAN2025
Derivatives | -3% -₹206 Cr 4,604,600
↑ 4,604,600 3. Principal Equity Savings Fund
CAGR/Annualized
return of 8.7% since its launch. Ranked 38 in Equity Savings
category. Return for 2024 was 12.6% , 2023 was 15.3% and 2022 was 4.1% . Principal Equity Savings Fund
Growth Launch Date 23 May 02 NAV (11 Feb 25) ₹66.7754 ↓ -0.33 (-0.50 %) Net Assets (Cr) ₹1,051 on 31 Dec 24 Category Hybrid - Equity Savings AMC Principal Pnb Asset Mgmt. Co. Priv. Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 2.23 Sharpe Ratio 1.2 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,521 31 Jan 22 ₹13,696 31 Jan 23 ₹14,064 31 Jan 24 ₹16,389 31 Jan 25 ₹18,208 Returns for Principal Equity Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month -0.8% 3 Month -0.8% 6 Month 0.6% 1 Year 9.6% 3 Year 9.8% 5 Year 12.5% 10 Year 15 Year Since launch 8.7% Historical performance (Yearly) on absolute basis
Year Returns 2023 12.6% 2022 15.3% 2021 4.1% 2020 18.2% 2019 14.6% 2018 5.1% 2017 1.6% 2016 15% 2015 5.5% 2014 3.6% Fund Manager information for Principal Equity Savings Fund
Name Since Tenure Dwijendra Srivastava 1 Jan 22 3.08 Yr. Sudhir Kedia 29 Oct 19 5.26 Yr. Rohit Seksaria 1 Jan 22 3.08 Yr. Data below for Principal Equity Savings Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 47.55% Equity 32.92% Debt 19.53% Equity Sector Allocation
Sector Value Financial Services 20.99% Consumer Cyclical 10.24% Energy 9.08% Industrials 7.36% Communication Services 6.42% Technology 6.1% Health Care 4.15% Basic Materials 2.66% Consumer Defensive 2.45% Utility 0.57% Real Estate 0.28% Debt Sector Allocation
Sector Value Cash Equivalent 45.33% Government 13.86% Corporate 7.89% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 31 Jul 18 | RELIANCE8% ₹83 Cr 681,500
↑ 212,000 Future on Reliance Industries Ltd
Derivatives | -7% -₹75 Cr 609,500
↑ 212,000 7.1% Govt Stock 2034
Sovereign Bonds | -6% ₹66 Cr 6,500,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 24 | BHARTIARTL5% ₹51 Cr 322,975 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 17 | 5322154% ₹41 Cr 380,500
↑ 16,250 Infosys Ltd (Technology)
Equity, Since 30 Jun 21 | INFY4% ₹40 Cr 213,500 Future on Bharti Airtel Ltd
Derivatives | -4% -₹38 Cr 237,975 Infosys Limited January 2025
Derivatives | -3% -₹33 Cr 175,200
↑ 175,200 Future on Axis Bank Ltd
Derivatives | -3% -₹32 Cr 302,500
↑ 16,250 Future on Mahindra & Mahindra Ltd
Derivatives | -3% -₹32 Cr 104,650
↑ 54,250 4. Edelweiss Equity Savings Fund
CAGR/Annualized
return of 8.8% since its launch. Return for 2024 was 13.4% , 2023 was 12.9% and 2022 was 3.2% . Edelweiss Equity Savings Fund
Growth Launch Date 13 Oct 14 NAV (11 Feb 25) ₹23.8889 ↓ -0.13 (-0.54 %) Net Assets (Cr) ₹561 on 31 Dec 24 Category Hybrid - Equity Savings AMC Edelweiss Asset Management Limited Rating Risk Moderately High Expense Ratio 1.66 Sharpe Ratio 1.88 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-365 Days (1%),365 Days and above(NIL) Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,124 31 Jan 22 ₹12,509 31 Jan 23 ₹12,824 31 Jan 24 ₹14,756 31 Jan 25 ₹16,370 Returns for Edelweiss Equity Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month -0.8% 3 Month 0.4% 6 Month 2% 1 Year 9.8% 3 Year 9.2% 5 Year 10.2% 10 Year 15 Year Since launch 8.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 13.4% 2022 12.9% 2021 3.2% 2020 11.7% 2019 13% 2018 7% 2017 3.8% 2016 15.1% 2015 4.6% 2014 5.3% Fund Manager information for Edelweiss Equity Savings Fund
Name Since Tenure Bhavesh Jain 1 Oct 21 3.34 Yr. Bharat Lahoti 18 Sep 17 7.38 Yr. Rahul Dedhia 1 Jul 24 0.59 Yr. Pranavi Kulkarni 1 Aug 24 0.5 Yr. Data below for Edelweiss Equity Savings Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 63.79% Equity 24.28% Debt 11.94% Equity Sector Allocation
Sector Value Financial Services 16.79% Energy 10.53% Consumer Cyclical 8.22% Industrials 8.06% Basic Materials 7.74% Technology 3.48% Health Care 3.28% Utility 2.42% Communication Services 1.9% Consumer Defensive 1.84% Real Estate 0.47% Debt Sector Allocation
Sector Value Cash Equivalent 55.02% Corporate 14.08% Government 6.36% Securitized 0.26% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 21 | RELIANCE7% ₹41 Cr 339,782
↑ 166,671 Future on Reliance Industries Ltd
Derivatives | -7% -₹37 Cr 299,500
↑ 165,000 7.18% Govt Stock 2033
Sovereign Bonds | -5% ₹26 Cr 2,500,000 Hdb Financial Services Ltd.
Debentures | -4% ₹25 Cr 2,500,000 Future on Aditya Birla Fashion and Retail Ltd
Derivatives | -4% -₹21 Cr 741,000 Aditya Birla Fashion and Retail Ltd (Consumer Cyclical)
Equity, Since 30 Sep 24 | ABFRL4% ₹21 Cr 741,000 Future on UPL Ltd
Derivatives | -3% -₹18 Cr 363,140
↑ 363,140 Future on Adani Ports & Special Economic Zone Ltd
Derivatives | -3% -₹17 Cr 136,000 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 30 Apr 20 | ADANIPORTS3% ₹17 Cr 136,000 Larsen & Toubro Ltd (Industrials)
Equity, Since 31 Oct 14 | LT2% ₹12 Cr 33,182