This Equity Saving Fund Is Good For 5 Years SIP, Rated 5 Stars By Value Research

Equity Saving Funds are hybrid mutual funds that invest nearly equally in stocks, FD-like securities, and risk-free hedging instruments. These products typically outperform bank Fixed Deposits of comparable length. The equity component helps to outpace inflation, while the debt and arbitrage components operate as a buffer to reduce negative volatility. Here, we have given an insight into an equity fund from the house of Mirae Asset Mutual Fund, rated 5 stars for 3-5 years of investment/SIP by Value Research.

Mirae Asset Equity Savings Fund - Direct Plan

NAV	Fund Size	Expense Ratio
₹15.18	₹ 449.78 Cr	0.42%

NAV as of 09 February 2022

It is a mid-size fund in its category, launched 3 years back on 26 November 2018 by Mirae Asset Mutual Fund. As of December 31, 2021, the fund's AUM was Rs 450 crores. The fund's expense ratio is 0.4%, which is lower than the category average and lower than the expense ratios charged by the majority of comparable Equity Savings funds. In the last year, the fund generated 12.60% returns, and since its inception, it has given 14.18% average annual returns. The scheme's ability to provide consistent returns outperforms that of the majority of funds in its category. The fund aims to offer investors with capital appreciation and income distribution through the use of equities and equity-related securities, arbitrage possibilities, and investments in debt and money market instruments. It has an above-average capacity to control losses in a sinking market. It is a moderately high risky fund for investment.

Returns

Lump-sum Returns

On Investment of Rs 10,000

1-Year	2-Year	3-Year	Since Inception
12.55%	15.57%	14.71%	14.04%

SIP Returns

On investment of Rs 1,000

Period Invested for	Absolute Returns	Annualised Returns
1 Year	5.53%	10.31%
2 Year	19.34%	17.92%
3 Year	27.29%	16.26%

Portfolio

The fund invests 68.33% of its assets in Indian stocks, with 40.75% in large-cap stocks, 11.97% in mid-cap stocks, and 4.9% in small-cap equities. The fund has a debt investment of 19.92%, with 18.82% in government securities and 1.1% in funds investing in extremely low-risk securities. The fund's debt has a low credit grade, meaning that the borrowers to whom it has given money are not of high quality. The equity element of the fund is predominantly invested in the Financial, Technology, Services, Automobile, and Healthcare sectors. It has less exposure to the financial and technology industries than other funds in the category.

The top five holdings of the fund are Government of India, Infosys Ltd., ICICI Bank Ltd., Reliance Industries Ltd., and the Reserve Bank of India.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from Value Research & MoneyControl . The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.