Equity savings mutual fund

Tue, 12 May 2026 00:00:00 +0000

An equity savings mutual fund in India is an open-ended hybrid scheme that combines three sources of return: unhedged equity (directional equity exposure), equity arbitrage (market-neutral hedged equity positions), and debt instruments. SEBI ’s October 2017 scheme categorisation circular defines the category by requiring a minimum 65% total equity allocation (which includes both unhedged and arbitrage equity), a minimum 10% in debt, and a minimum 10% in unhedged equity. Because total equity (unhedged plus arbitrage) is at least 65%, equity savings funds qualify for equity-oriented taxation, making them more tax-efficient than debt-oriented hybrid categories such as conservative hybrid funds .

Three-Way Allocation on WebNotes

Equity savings mutual fund