Hello, I understand that you would have liked to see a comparison between arbitrage and equity savings funds. Arbitrage funds have a similar risk-return profile as liquid debt funds. However, they enjoy equity-like taxation. So, in terms of taxation, equity savings and arbitrage funds have the same treatment. But on the returns front, equity savings funds would have done better. And on the volatility front, arbitrage funds would be better. So, for your short-term investment needs, arbitrage funds are good. For the medium term, equity savings funds are good, provided you can handle the volatility involved.
How do equity savings fund compare with arbitrage funds? That would be a good analysis. I assume arbitrage funds provide slightly lower returns at much lower volatility.
Hello, you are right. Equity savings funds would have a higher risk and higher return profile as compared to arbitrage funds. But the difference could be steep and not slight.
@etmoney: good information. It would be great you also add equity to final comparison on top of debt funds so that everyone knows where this stands between equity and debt
Hello, glad to know that you liked the video. Please share it with your friends, family and colleagues. Will share your observation with the content team.
What about parking a chunk of retirement corpus in equity savings funds for SWP after a few years? I have about one fourth of my portfolio in hdfc equity savings.
Hello, it would be advisable to have a debt fund if you are planning a regular SWP. That way, your corpus will be relatively safer. However, equity savings funds can have a role in retirement as well. They can be used to park your retirement corpus so that it earns inflation-adjusted returns. The equity component of equity savings fund can help you counter the effect of inflation. However, for SWPs, a debt fund is often better.
@@ETMONEY thank you for your guidance. I have half my portfolio in ppf and am planning to start senior citizen scheme after 4 years (after I turn 60) - won't it be a good substitute for debt fund SWP? Hoping to postpone equity savings MF SWP for as long as possible while living in current income.
Hello, you can take out money anytime from equity savings funds. However, given the equity exposure of these funds, it would be advisable not to treat them at par with liquid and arbitrage funds. As discussed in the video, these funds can give high losses in the short term.
sir if a person comes in 30% tax slab then it seems useless to do FD...since market has not corrected for a long time...is it gud to invest in equity savings funds and arbitrage funds ryt now.
Dont assume it wont correct in the future and plqn accordingly, look at the category of the funds its inherent risks both explicit and implicit and then decide
Hello, the idea of this video was to see if equity savings funds can act as a substitute for debt funds. That's why we have used debt funds for comparison. However, I am noted your suggestion and will share it with our content team.
This content is wonderful. 👍 The narration could use better enunciation as in the case of Shankar Nath's videos which are brilliant but often don't inform as well as ET Money videos.
Hello, thanks for your feedback and appreciation. It has always been our endeavour to improve our videos so that they become more and more useful to our viewers.
Is choosing Equity Savings for Emergency Fund will be a wrong idea? As mentioned 3 and 5 years are safe, In my case I'm doing SIP to build an Emergency Corpus. Will that work? Please comment ur thoughts @ETMONEY
Hello, arbitrage funds have a risk-return profile like liquid funds. So, they are good for your short-term investments. If you would like to earn higher returns on your medium-term corpus and can bear some volatility, equity savings funds could be the right option.
I really appreciate the dedication in each video you post. Long term investor's know that the market and economy will recover eventually, and investors should be positioned for such a rebound, I gained $180k from bitcoin in 2023, before the market crash and now I am buying again, adding more at a time. Having a good financial advisor like Ethan Jackson, will add to your success in the crypto market.
I haven't seen a better explanation to Equity Savings Fund than this presentation. Amazing work etmoneu team
Hello, we are happy to know that you found this video useful. Please share it with your friends and family as well and help spread the word.
I am invested in ICICI prudential equity savings fund and doing good for last 3 years with no negative return in any quarter.
thanks to bullrun
Yes it is safest of all equity funds with least exposure to equity. Best substitute for debt funds!
6:10 Are all the standard deviations for 1 year rolling returns? The numbers are different though.
Great video. Please make a video comparing arbitrage funds with debt funds.
Hello, thanks for your suggestion. Will share it with the content team.
Guys I am must say your videos are very clear not one of the best it’s on top of!! Keep it up 👍
Thanks for making this wonderful video. It is clear that equity savings funds are a good option for medium term investment of 3-5 years.
Yes while enjoying taxation benefits. Debts funds will generate return but after tax that profile will be close to nothing
Pl make video on conservative Hybrid fund which invest upto 25% in equity
Hello, thanks for your suggestion. Will share it with the content team.
As these funds have such a large arbitrage, it would have been nice to compare them with arbitrage funds.
Hello, I understand that you would have liked to see a comparison between arbitrage and equity savings funds. Arbitrage funds have a similar risk-return profile as liquid debt funds. However, they enjoy equity-like taxation. So, in terms of taxation, equity savings and arbitrage funds have the same treatment. But on the returns front, equity savings funds would have done better. And on the volatility front, arbitrage funds would be better. So, for your short-term investment needs, arbitrage funds are good. For the medium term, equity savings funds are good, provided you can handle the volatility involved.
How do equity savings fund compare with arbitrage funds? That would be a good analysis. I assume arbitrage funds provide slightly lower returns at much lower volatility.
Hello, you are right. Equity savings funds would have a higher risk and higher return profile as compared to arbitrage funds. But the difference could be steep and not slight.
@etmoney: good information.
It would be great you also add equity to final comparison on top of debt funds so that everyone knows where this stands between equity and debt
Hello, glad to know that you liked the video. Please share it with your friends, family and colleagues. Will share your observation with the content team.
Very good explanation. Detailed analysis.
Great learning with simple way
Sir I cancelled my lock sip in etmoney app now I want to withdraw money but I can't find any option please help me sir
What about parking a chunk of retirement corpus in equity savings funds for SWP after a few years? I have about one fourth of my portfolio in hdfc equity savings.
Hello, it would be advisable to have a debt fund if you are planning a regular SWP. That way, your corpus will be relatively safer. However, equity savings funds can have a role in retirement as well. They can be used to park your retirement corpus so that it earns inflation-adjusted returns. The equity component of equity savings fund can help you counter the effect of inflation. However, for SWPs, a debt fund is often better.
@@ETMONEY thank you for your guidance. I have half my portfolio in ppf and am planning to start senior citizen scheme after 4 years (after I turn 60) - won't it be a good substitute for debt fund SWP?
Hoping to postpone equity savings MF SWP for as long as possible while living in current income.
Which is best to park emergency fund ,---equity saving or abitrage fund????
It's Bank FD or a Debt fund
Does this work like liquid fund or arbitrage fund.... ie. whether can i take out cash in case of emergencies or not ?
Hello, you can take out money anytime from equity savings funds. However, given the equity exposure of these funds, it would be advisable not to treat them at par with liquid and arbitrage funds. As discussed in the video, these funds can give high losses in the short term.
sir if a person comes in 30% tax slab then it seems useless to do FD...since market has not corrected for a long time...is it gud to invest in equity savings funds and arbitrage funds ryt now.
Dont assume it wont correct in the future and plqn accordingly, look at the category of the funds its inherent risks both explicit and implicit and then decide
Equity saving funds with ecposuee to gold?
wonderful information.
Superb video!
The ideal comparison should be between equity arbitrage and debt fund..
Hello, the idea of this video was to see if equity savings funds can act as a substitute for debt funds. That's why we have used debt funds for comparison. However, I am noted your suggestion and will share it with our content team.
This content is wonderful. 👍 The narration could use better enunciation as in the case of Shankar Nath's videos which are brilliant but often don't inform as well as ET Money videos.
Hello, thanks for your feedback and appreciation. It has always been our endeavour to improve our videos so that they become more and more useful to our viewers.
Not all equity savings funds are same. It would have been better to discuss risk factors with different top funds
The return comparison for 3-5 years post taxation should have been shown.
Hello, thanks for your suggestion. Will share it with our content team.
Are these returns absolute or Cagr.
Hello, we have considered rolling returns in CAGR terms.
Very nicely explained
Hi, glad to know that you found this video helpful. Please don’t forget to share it with your friends and family.
Is choosing Equity Savings for Emergency Fund will be a wrong idea? As mentioned 3 and 5 years are safe, In my case I'm doing SIP to build an Emergency Corpus. Will that work? Please comment ur thoughts @ETMONEY
Only arbitrage funds are proper substitute.
Hello, arbitrage funds have a risk-return profile like liquid funds. So, they are good for your short-term investments. If you would like to earn higher returns on your medium-term corpus and can bear some volatility, equity savings funds could be the right option.
I really appreciate the dedication in each video you post. Long term investor's know that the market and economy will recover eventually, and investors should be positioned for such a rebound, I gained $180k from bitcoin in 2023, before the market crash and now I am buying again, adding more at a time. Having a good financial advisor like Ethan Jackson, will add to your success in the crypto market.
Quant small cap best