What is an equity savings scheme?

1) Equity saving schemes are hybrid funds that invest in equity, debt and arbitrage securities.

2) The equity component helps beat inflation while debt and arbitrage portions act as a cushion to minimise downside volatility.

3 They offer moderate capital appreciation and a steady income.


4)These funds are suitable for investors with moderate risk profile.

5) Equity and the derivative exposure is cumulatively considered to be equity so these funds are more tax efficient than conservative hybrid funds.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta