Just returns, no rollercoaster
Edelweiss Equity Cost savings delivers stable returns through mindful equity, quality debt and constant arbitrage
The funds under this hybrid mutual fund category generally designate 25– 30 per cent to equities, 35– 45 per cent to arbitrage, and 25– 35 per cent to debt. The fund follows a mainly fixed allotment strategy: 25 per cent to equity, 30 per cent to financial obligation, and approximately 45 per cent to arbitrage. Throughout the steep 38 per cent fall in the Nifty 50 in between January and March 2020 due to the Covid-induced correction, the fund decreased by just 9 per cent, considerably outperforming the classification average of -16 per cent.
The funds under this hybrid shared fund category usually designate 25– 30 per cent to equities, 35– 45 per cent to arbitrage, and 25– 35 per cent to financial obligation. The fund follows a mostly fixed allowance technique: 25 per cent to equity, 30 per cent to debt, and roughly 45 per cent to arbitrage. During the high 38 per cent fall in the Nifty 50 between January and March 2020 due to the Covid-induced correction, the fund decreased by just 9 per cent, considerably outshining the category average of -16 per cent. An analysis of five-year rolling returns over the previous years shows that the fund provided a typical annual return of 9.2 per cent, ahead of the category average of 8 per cent. While the proceeds from financial obligation funds and bank fixed deposits are taxed as per the investor’s slab rate regardless of holding duration, equity funds with at least 65 per cent equity are taxed at 20 per cent for short-term capital gains (held 1 year, above 1.25 lakh).
