Mutual funds have been gaining momentum in India over the past few years. As per the information provided by AMFI, there are nearly 25.2 million SIP accounts in the mutual fund industry. Further, around 9.74 lakh SIP accounts have been averagely added per month during the financial year 2018-19. With the increasing attractions towards mutual funds, investors are searching for more options to park their money with savings purposes. Reliance Equity Savings Fund also aims to provide savings option by investing in equity, debt, arbitrage opportunities, and money market instruments for capital appreciation. It was launched on 30th May 2015 with a focus on maintaining adequate returns to the investors.
Here are some benefits of Reliance Tax Savings Fund G over fixed deposits that make it a better savings options and return a generator.
Extra Tax Savings Returns
Most of the equity saving schemes have been launched after the 2014 Union Budget when the holding period changed from 1 to 3-years for capital gains in debt funds. The industry has introduced tax friendly mutual fund products, equity savings fund, for the investors to provide tax savings benefits in shorter as well as longer period. Reliance Equity Fund has adequate exposure to equity instruments to provide the advantage of equity tax saving benefits instead of debt taxation.
Reliance Equity Savings Fund Growth is also one of them to provide risk-adjusted returns and tax savings benefits for the investors. It invests in a mix of debt and equity securities which provide tax benefits and savings option.
The portfolio of this scheme holds 46.33% equity instruments, 23.42% debt instruments, and around 30.25% cash equivalents.
Beat the Inflation
Even the experts at MySIPonline suggest parking your money in Reliance Equity Savings Fund G instead of fixed deposits. They give the reason that the interest earned on fixed deposits is not sufficient to beat inflation in long-term. The equity savings fund provide predictable returns along with little risk by maintaining a diversified portfolio.
With the investment in equity instruments, Reliance Equity Savings Fund generates higher returns against the inflation in long-term. Although it has higher exposure to equity as compared to debt instruments, it is a better option to generate higher returns with the low-risk measure.
Active Equity Allocation
The active equity exposure in the portfolio of Reliance Equity Savings Fund maintains a diversified portfolio of different market caps and sectors. Apart from this, it has a large-cap exposure as well to reduce overall risk in the portfolio. If you are looking for an option which can generate higher and inflation-adjusted returns than FD interest rates, this active equity portfolio is suitable to help in generating additional returns.
Fixed Income Exposure
Reliance Equity Savings Fund has a significant exposure to debt instruments, however, less than equity instruments, to enjoy equity taxation benefits. It invests majorly in unrated papers to get benefits of credit rating improvements.
Hedging Benefits
Arbitrage profits generated from hedge positioning makes Reliance Equity Savings Fund produce additional risk-free returns.
Reliance Equity Savings Fund is a good option over fixed deposits considering hedging benefits, active equity exposure, fixed income assets, high returns, and tax savings benefits. If you have any query regarding the above information or regular plan, you can mention it in the below-provided link to get assistance ASAP. https://goo.gl/WofRJm
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