ESFs: Ideal for investors seeking FD-plus returns, low volatility

As of January 31, 2025, ESFs managed assets worth ₹42,161 crore, according to the Association of Mutual Funds in India

Market volatility has made equity allocation difficult, especially for conservative investors. Equity Savings Funds (ESFs) offer a solution to this problem. A recent new fund offer (NFO) of an ESF from WhiteOak Capital Asset Management Company (AMC) highlights their growing appeal.

 

“ESFs offer a blend of equity, debt, and arbitrage with lower volatility than pure equity funds, which is appealing amid recent market swings. They also deliver tax-efficient returns,” says Harshad Borawake, head of research and fund manager, Mirae Asset Investment Managers (India).

 

As of January 31, 2025, ESFs managed assets worth ₹42,161 crore, according to the Association of Mutual