Bandhan Equity Savings Fund - Direct Plan
Bandhan Equity Savings Fund - Direct Plan
An open ended scheme investing in equity, arbitrage and debt
What is Equity Savings Fund?
Equity savings funds also known as equity savings schemes are a type of hybrid fund that invests the total fund amount between debt funds, equity funds, fixed-income securities and arbitrage funds. Since these funds invest in a variety of funds, they allow for diversification and have the potential to give high returns with a relatively low level of risk.
In equity savings funds, minimum 65% of the total investment is invested in equity assets, 10% of the total assets are invested in debt. Other assets are invested in arbitrage and fixed-income securities. Although a large portion of the fund is invested in equity, a considerable amount is also invested in debt and arbitrage holdings. Consequently, they offer relatively stable returns and are less vulnerable to market volatility.
Equity savings funds and equity funds are taxed similarly; the tax liability is reduced to a considerable extent. For investments held over twelve months, returns below ₹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
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Performance as on 28th March 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 | 12.34 | 7.42 | 7.40 | 6.65 | 6.84 | 11,238 | 12,403 | 14,296 | 19,054 | 28,478 |
| 16.40 | 10.18 | 10.43 | 10.33 | N.A. | 11,645 | 13,378 | 16,429 | 26,756 | N.A. | |
| 8.57 | 4.22 | 6.11 | 7.09 | 6.54 | 10,859 | 11,320 | 13,458 | 19,852 | 27,237 | |
| ^ 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/3spfzbo
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?
While ELSS funds are equity funds, Equity Savings Schemes are equity oriented hybrid funds. Both these funds are moderate to long-term investment options. However, there are some key differences.
Lock-in Period: ELSS funds are characterised by a three-year lock-in period. There is no way to exit this lock-in period. Equity savings schemes have no such lock-in period.
Tax Advantage: ELSS funds are also known as tax-saving funds as they have an income tax benefit under Section 80C of the Income Tax Act, 1961. Returns on equity savings funds under ₹1 lakh for a time period of a year are exempt* from tax.
Diversification: ELSS funds invest in equity and equity-related securities. Equity savings funds invest in equity and equity-related securities, along with debt, arbitrage and fixed-income securities.
Risk: ELSS funds are categorised as high or very high-risk investment options. Equity savings funds are categorised as moderate to low-risk investments which generate potentially stable returns.
Who Should Invest in an Equity Savings Scheme?
Equity Savings Schemes are primarily equity funds with a moderate to long-term growth perspective. These funds can help investors generate capital growth and income in the long term. However, equity savings schemes significantly lower their risk by investing in debt and arbitrage. Investments in debt and arbitrage lower their vulnerability to market volatility.
Investors seeking stable returns with a moderate to long-term investment horizon may be suited to equity savings funds. Moreover, they are a low-risk investment and are consequently suitable for investors with a minimal risk appetite.
Investors seeking portfolio diversification can also opt for equity savings funds as they invest in equity, equity-related securities including arbitrage and debt as well as 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.