Bandhan Equity Savings Fund - Direct Plan
An open ended scheme investing in equity, arbitrage and debt
What is Equity Savings Fund?
Imagine your investment strategy as a balanced sports team. An Equity Savings Fund combines the growth potential of equities, the relative stability of debt securities, and the strategic opportunities of arbitrage. This mix aims to generate returns while managing risk effectively.
Equity savings funds, also called equity savings schemes, are hybrid funds that allocate investments across equities, debt, fixed-income securities, and arbitrage. This diversified approach provides the potential for higher returns with relatively lower risk.
In equity savings funds, at least 65% of the investment is allocated to equities, 10% to debt, and the rest to arbitrage and fixed-income securities. While equities drive potential growth, the inclusion of debt and arbitrage helps relatively stabilize returns and mitigate market volatility.
Equity savings funds are taxed similarly to equity funds, with tax benefits on long-term capital gains. For investments held over 12 months, gains up to ₹1 lakh are exempt* from taxation.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load
a) If redeemed/switched out within 7 days from the date of allotment:
->Upto 10% of investment:Nil,
->For remaining investment: 0.25% of applicable NAV.
b) If redeemed / switched out after 7 days from date of allotment: Nil.
Scheme is suitable for a minimum investment horizon of more than 3 years
Tier 1 Benchmark : CRISIL Equity Savings IndexAlternate Benchmark : CRISIL 10 Year Gilt Index
- Performance
- Portfolio
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Performance as on 29th November 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 09/06/2008 Since inception | 1 year | 3 year | 5 year | 10 year | 09/06/2008 Since inception | |
| Bandhan Equity Savings Fund - Regular Plan - Growth | 9.29 | 6.70 | 7.86 | 6.67 | 6.88 | 10,931 | 12,151 | 14,605 | 19,085 | 29,941 |
| 12.96 | 9.47 | 10.67 | 9.67 | N.A. | 11,300 | 13,120 | 16,608 | 25,184 | N.A. | |
| 10.18 | 5.58 | 5.48 | 6.79 | 6.66 | 11,021 | 11,769 | 13,059 | 19,309 | 28,940 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Harshal Joshi (w.e.f 20/10/2016), Mr. Nemish Sheth (w.e.f 01/11/2021), Mr. Viraj Kulkarni (w.e.f 01/07/2022)
View fund performance of other funds managed by Mr. Harshal Joshi, Mr. Nemish Sheth, Mr. Viraj Kulkarni
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/46xQzi1
Bandhan Equity Savings Fund
(Scheme Risk-o-meter)
CRISIL Equity Savings Index
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate long term capital growth and income.
- Investment predominantly in Equity and Equity related securities (including arbitrage and other derivative strategies) as well as Fixed Income securities.
What is the Difference Between ELSS and Equity Savings Schemes?
ELSS funds are pure equity funds, while equity savings schemes are hybrid funds that include both equity and debt. Both are moderate to long-term investment options, but the following key differences set them apart:
Lock-in Period: ELSS funds have a mandatory three-year lock-in period, while equity savings schemes do not.
Tax Advantage: ELSS funds offer tax benefits under Section 80C of the Income Tax Act, 1961, while equity savings funds provide tax exemptions* on gains below ₹1 lakh after one year.
Diversification: ELSS funds invest only in equities, whereas equity savings schemes diversify across equities, debt, arbitrage, and fixed-income securities.
Risk: ELSS funds are categorised as high or very high-risk, while equity savings schemes are categorised as moderate to low-risk, offering more relative stability.
Who Should Invest in an Equity Savings Scheme?
Equity savings schemes offer moderate to long-term growth potential, combining equities with debt and arbitrage to reduce risk and volatility. This blend helps generate growth potential while managing market fluctuations.
Equity savings funds are suitable for investors seeking relatively stable returns with a moderate to long-term horizon, especially those with a low-risk appetite.
Equity savings funds are also ideal for investors looking to diversify across equities, arbitrage, debt, and fixed-income assets.
FAQs on Equity Savings Fund
What is Equity Savings Fund?
Equity savings funds are a type of a hybrid equity fund that invests in equity and equity-related securities, arbitrage and debt. These are low-risk investments that allow for portfolio diversification while offering stable returns.
Who should invest in an Equity Savings Fund?
Equity Savings Schemes are a moderate to long-term investment option which provide potentially stable returns. These funds are suitable for investors seeking long-term capital growth and income by investing in equity and equity-related securities, debt, arbitrage and fixed-income securities.
Are Equity Savings Funds safe?
Equity Savings Funds are a relatively low-risk investment option. As they invest in a variety of assets, they are less vulnerable to market fluctuations and volatility. Thus, making them suitable for investors with a low-risk appetite.
What is the disadvantage of Equity Funds?
Equity Funds may have an unfavourable expense ratio. Moreover, equity savings schemes are long-term investments and may not be suited for investors looking for short-term gains.
What is the difference between ELSS and Equity Savings Schemes?
Although both these funds are moderate to long-term funds. ELSS funds are equity funds while Equity Savings Schemes are equity-oriented hybrid funds. ELSS funds have a lock-in period of three years; equity savings funds have no lock-in period. ELSS funds are exempt under Section 80C of the Income Tax Act 1961; equity savings schemes are not exempt under this section. ELSS funds are a high-risk investment, whereas equity savings schemes are a moderate to low-risk investment.
What are the benefits of an Equity Savings Fund?
Firstly, Equity Savings Funds allow for diversification of assets as they invest in equity, debt, arbitrage and fixed-income securities. Secondly, they are a low to moderate-risk investment and are suitable for investors with a low-risk appetite seeking stable returns. Thirdly, by investing in debt, arbitrage and fixed-income securities, they are more likely to avoid market volatility.