In the previous column, we had commenced a discussion on Equity Savings Funds. Let us now turn the spotlight on a few randomly selected funds in this category and how they have performed over time frames of 1, 3 and 5 years.
These funds include Franklin India Equity Savings Fund, DSP Equity Savings Fund, Mirae Asset Equity Savings Fund, Kotak Equity Savings Fund and ABSL Equity Savings Fund.
Franklin India Equity Savings Fund has an AUM of Rs 671 crore. The current Asset allocation mix is nearly 16% in Equity, 50% in Arbitrage, 27% in Debt, 4% in Margins & 1% in Cash & Cash Equivalent. Its top holdings are in the Banks, Petroleum Products and IT-Software sectors. The performance of this fund over a 1-year, 3-years and 5-years time period is 12.41%, 7.69% and 9.03% respectively.
DSP Equity Savings Fund has an AUM of R1,735 crore. The current Asset allocation mix is nearly 32% in Equity, 39% in Arbitrage, 27% in Debt and 2% in Cash & Cash Equivalent. Its top holdings are in the Banks, Pharmaceuticals & Biotechnology and Automobiles sectors. The performance of this fund over a 1-year, 3-years and 5-years time period is 18.55%, 9.13% and 10.52% respectively.
Mirae Asset Equity Savings Fund has an AUM of R1,279 crore. The current Asset allocation mix is nearly 36% in Equity, 32% in Arbitrage, 22% in Debt and 10% in Cash & Cash Equivalent. Its top holdings are in the Banks, IT-Software and Pharma & Biotech sectors.
The performance of this fund over a 1-year, 3-years and 5-years time period is 18.95%, 10.35% and 12.78% respectively.
Kotak Equity Savings Fund has an AUM of R7,115 crore. The current Asset allocation mix is nearly 32% in Equity, 34% in Arbitrage, 31% in Debt and 3% in Cash & Cash Equivalent. Its top holdings are in the Banks, Telecom Services and Finance sectors. The performance of this fund over a 1-year, 3-years and 5-years time period is 20.95%, 12.66% and 12.11% respectively.
ABSL Equity Savings Fund has an AUM of R602 crore. The current Asset allocation mix is nearly 17% in Equity, 49% in Arbitrage, 28% in Debt and 6% in Reits, Invits & Hybrid Instruments. Its top holdings are in the Banks, Transport Infrastructure and Finance sectors. The performance of this fund over a 1-year, 3-years and 5-years time period is 11.60%, 5.86% and 9.02% respectively.
Equity Savings Funds provide a balanced strategy for investors aiming for moderate equity exposure while benefiting from the stability of debt and cash. This flexibility allows for a blend of growth potential and risk management.
While some funds have shown strong historical returns, it’s essential to note that past performance is not indicative of future results. Furthermore, choosing the right fund to match an investor’s risk tolerance and financial goals merits seeking professional guidance.
Ashok Kumar
Head of LKW-India.
He can be reached at ceolotus@hotmail.com
(Views expressed here are personal)