These schemes will invest in equity, debt and arbitrage. They will have to invest at least 65 percent of the total assets in stocks and a minimum 10 percent in debt. They would declare the minimum hedged and unhedged investments in the scheme information document.
Conservative investors who fear market volatility but still want exposure to equities in their portfolio can opt for an equity savings scheme.
The minimum investment varies from scheme to scheme. It could range between Rs.100/ – to Rs.5,000/ -.
Equity Savings Funds receive the same tax treatment as other equity funds.
- Short term capital gain (less than one year): 15% of gain
- Long-term capital gain (more than one year): 10% of gain in excess of Rs.1 lakh per year.