Equity savings schemes shine as investors seek out low-risk options

Equity savings schemes, one of the lesser-known hybrid fund categories, have attracted heightened interest as investors search for low-risk alternatives. In September, these schemes received a net inflow of Rs 2,269 crore, the highest amount ever recorded in a calendar month. Net account additions, or folios, surged to 11,232, compared to the previous six-month average of 6,300.

Equity savings schemes offer lower-risk hybrid options with tax advantages over most other mutual fund schemes with similar risk profiles.

These schemes invest in a blend of arbitrage opportunities, pure equity investments, and debt instruments to deliver predictable returns with