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Equity Savings Funds Schemes to Help You Fulfill All Your Financial Goals

  • Total Funds 24
  • Average annual returns 21.67%

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Schemes to Help You Fulfill All Your Financial Goals. More

  • Total Funds : 24
  • Average annual returns 21.67%

What is Equity Savings Mutual Fund?

Equity Savings Mutual Funds are those, which invest in opportunities that generates in debt and cash segments of the equity space through a arbitrage strategy. Equity Savings Schemes also invest a considerable part in the equity and related securities, to provide a higher returns to the investors. The allocation in these schemes are great option for investors, who want  moderate growth, and have a low to moderate risk appetite.

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Equity Oriented Hybrid Specialty Funds : It Will Work Wonders

Equity oriented hybrid specialty plans are the ones which allow the clients to invest majorly in the equity schemes along with a less but significant portion in the money market instruments. As the name suggests, the clients have access to a scheme which allows them to make use of their money in such a way that a single scheme can achieve the capital appreciation and security of funds. But, before understanding the details of the scheme, one must get to know the reason behind launching such a scheme.

Equity oriented hybrid specialty: Segregating the elements

Equity oriented hybrid specialty fund includes various elements that must be studied thoroughly before investing in this scheme. As already discussed, equity hybrid funds invest a major portion which is 65% of the equity and the remaining 35% in the debt instruments.
Equity or shares are the major attraction for the clients as they are capable of providing higher returns to the clients for building up an enormous amount over a period of time. There are clients who want to get the best returns for their investments and make use of each and every penny they put into a particular scheme.  
Money market instruments are the schemes which allow the clients to have a secured investment schedule. The clients who aspire to invest in mutual fund for its benefits but do not want to take the risk of losing their money go in for these funds. Money market instruments include bonds, debentures, securities, certificate of deposit, commercial paper, etc. The money market instruments can be of public or private companies. However, both of them serve the clients with safe investment methods along with allowing them to create a huge corpus.
Hybrid schemes are themutual fund plans that allow the customers to enjoy the benefit of equity and debt investments in a single plan. It is a perfect scheme for the clients who want their money to achieve a growth under equity schemes and at the same time intends to retain a portion of their investments under secured methods.
Therefore, equity oriented hybrid specialty funds are well known for providing the benefits of equity and debt in a single scheme. Equity debt funds are majorly for the clients who want to invest more in equity and at the same time want some of their money to be invested in the fixed income funds. Hence, instead of investing in two different schemes, the clients can avail the plus points of both the schemes by investing in a single plan.

Equity oriented hybrid specialty funds: A must invest

Equity hybrid funds are the most important schemes for the ones who want to row two boats at the same time without toppling over. If a client does not invest in equity hybrid schemes, then they would have to invest separately in equity and debt schemes. The clients will have to maintain the details of each scheme and will also have to remember SIP investment dates (if they opt for SIP). It will not only increase the burden on the clients but at the same time will result in a task which would consume more time and money. But, by investing in a single scheme, i.e., equity oriented hybrid scheme, the clients can easily make the best possible use of their time and money. This would make the clients happy and create an excellent impact on their portfolio. If a client has the investment strategy of investing in equity and debt schemes, then equity hybrid plans are the most accurate for them in terms of returns, time saving, twin benefits in a single scheme and single amount, etc. So, one can have many benefits from a single scheme.

To conclude, equity hybrid funds are a boon for the clients who want to include capital appreciation schemes and fixed income funds in their portfolio. The clients have to pay a single SIP for a attaining the benefits of two different schemes. MySIPonline.com offers you to invest in various equity oriented hybrid specialty funds which will make the clients happy and let them park their money in the correct schemes as well and offer the SIP return calculator for calculting the return for the invested amount.

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Frequently Asked Questions

Who should invest in Equity Savings Mutual Funds?
Equity Savings funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.
What is the minimum investment required for investing in Equity Savings funds?
The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.
What is the investment philosophy followed by Equity Savings companies?
The fund manager of Equity Savings fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.
Why to invest in Equity Savings funds?
Equity Savings funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.
How risky are Equity Savings funds?
Equity Savings funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in Equity Savings funds.
Are Equity Savings Funds for long term investment?
Yes, Equity Savings funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in Equity Savings mutual funds.
What is the benchmark of Equity Savings Fund?
Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different Equity Savings funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.
What are the taxes applied on Equity Savings Mutual Funds?
Equity Savings funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.

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