Contents
All equity savings funds compared
Largest fund first. Returns are for the direct plan, compound annual, to 13 October 2026. The base expense ratio is what the fund house charges; the total adds brokerage, exchange charges and taxes on the fund's own trades, which are high because of the arbitrage part. Returns are after all of it.
| Fund | Base expense ratio, direct | Total expense ratio, direct | Total expense ratio, regular | 1 year | 3 years | 5 years | Average assets |
|---|---|---|---|---|---|---|---|
| ICICI Prudential Equity Savings FundICICI Prudential Mutual Fund | 0.43% | 1.12% | 1.59% | 2.03% | 6.62% | 7.12% | ₹15,905 cr |
| Kotak Equity Savings FundKotak Mahindra Mutual Fund | 0.57% | 1.09% | 2.14% | 2.22% | 9.53% | 9.52% | ₹10,518 cr |
| HDFC Equity Savings FundHDFC Mutual Fund | 0.83% | 1.30% | 2.20% | 0.94% | 7.84% | 7.66% | ₹5,699 cr |
| SBI Equity Savings FundSBI Mutual Fund | 0.80% | 1.46% | 2.00% | 2.45% | 7.40% | 7.78% | ₹5,539 cr |
| DSP Equity Savings FundDSP Mutual Fund | 0.60% | 1.10% | 1.95% | 1.09% | 8.06% | 7.21% | ₹3,334 cr |
| Mirae Asset Equity Savings FundMirae Asset Mutual Fund | 0.31% | 0.73% | 1.73% | 3.83% | 9.62% | 8.53% | ₹2,018 cr |
| Edelweiss Equity Savings FundEdelweiss Mutual Fund | 0.54% | 1.11% | 2.10% | 6.73% | 10.80% | 9.23% | ₹1,592 cr |
| HSBC Equity Savings FundHSBC Mutual Fund | 0.51% | 1.41% | 2.40% | 6.32% | 12.32% | – | ₹1,388 cr |
| Aditya Birla Sun Life Equity Savings FundAditya Birla Sun Life Mutual Fund | 0.45% | 1.19% | 1.67% | 3.83% | 7.50% | 6.19% | ₹1,126 cr |
| Sundaram Equity Savings FundSundaram Mutual Fund | 0.69% | 1.34% | 2.78% | -0.69% | 8.27% | – | ₹1,012 cr |
| Axis Equity Savings FundAxis Mutual Fund | 0.99% | 1.56% | 2.70% | 2.95% | 8.72% | 7.21% | ₹881 cr |
| UTI - Equity Savings FundUTI Mutual Fund | 0.62% | 1.04% | 2.06% | 1.53% | 7.67% | 7.96% | ₹833 cr |
| Nippon India Equity Savings FundNippon India Mutual Fund | 0.43% | 0.99% | 2.04% | 0.93% | 6.22% | 6.20% | ₹789 cr |
| Franklin India Equity Savings FundFranklin Templeton Mutual Fund | 0.32% | 0.82% | 1.61% | 2.60% | 6.97% | 6.45% | ₹590 cr |
| Mahindra Manulife Equity Savings FundMahindra Manulife Mutual Fund | 0.75% | 1.28% | 2.83% | 3.81% | 8.84% | 7.99% | ₹531 cr |
| Bandhan Equity Savings FundBandhan Mutual Fund | 0.15% | 0.63% | 1.54% | 3.08% | 6.74% | 6.44% | ₹401 cr |
| Baroda BNP Paribas Equity Savings FundBaroda BNP Paribas Mutual Fund | 1.14% | 1.71% | 2.84% | 3.00% | 8.82% | 7.84% | ₹285 cr |
| Invesco India Equity Savings FundInvesco Mutual Fund | 0.79% | 1.51% | 2.97% | -0.92% | 8.20% | 7.03% | ₹284 cr |
| WhiteOak Capital Equity Savings FundWhiteOak Capital Mutual Fund | 0.75% | 1.51% | 2.99% | 5.05% | – | – | ₹271 cr |
| Union Equity Savings FundUnion Mutual Fund | 1.25% | 2.11% | 2.60% | 2.04% | 6.49% | 5.71% | ₹119 cr |
| PGIM India Equity Savings FundPGIM India Mutual Fund | 0.56% | 1.11% | 1.77% | 1.90% | 6.08% | 5.65% | ₹59 cr |
| quant Equity Savings Fundquant Mutual Fund | 0.57% | 2.03% | 3.74% | 7.07% | – | – | ₹57 cr |
| Bajaj Finserv Equity Savings FundBajaj Finserv Mutual Fund | 0.28% | 1.05% | 2.23% | 4.37% | – | – | ₹40 cr |
| LIC MF Equity Savings FundLIC Mutual Fund | 1.11% | 1.86% | 2.83% | 1.79% | 8.09% | – | ₹38 cr |
Expense ratios as disclosed on 13 October 2026; brokerage, transaction costs and levies in the total are averages since 1 April, annualised, as AMFI publishes them. Returns: Direct-Growth plan NAVs to 13 October 2026. Average assets: July–September 2026, all plans. All from AMFI. A dash means the fund is too young for the period. The order is by size; it is not a ranking or a recommendation.
What is an equity savings fund?
An equity savings fund is a hybrid mutual fund that SEBI requires to keep at least 65% of its assets in equity and equity-related instruments and at least 10% in debt. Much of that equity is hedged: since SEBI’s 2026 rules, the net, unhedged equity must be between 15% and 40% of the fund’s assets. Existing funds had until August 2026 to comply.
A typical portfolio has three parts:
- Unhedged equity: shares held outright, which rise and fall with the market; 15% to 40% of the fund.
- Arbitrage: shares bought with an equal sale of the same share in the futures market, earning the gap between the two prices, much as an arbitrage fund does.
- Debt: bonds and money market paper, at least 10% of the fund.
How much sits in each part varies by fund, and within each fund over time. The monthly factsheet shows the split.
How equity savings funds earn
Returns come from all three parts: gains or losses on the unhedged shares, the arbitrage gap, and interest on the debt. Because only part of the equity moves with the market, the NAV swings much less than an equity fund’s, but more than an arbitrage or liquid fund’s.
The unhedged share drives most of the difference between funds. A fund with more of it does better in rising markets and worse in falling ones.
How equity savings funds are taxed
Under the Income-tax Act, 2025, a fund counts as equity-oriented if, on average over the year, at least 65% of its money is in listed shares of Indian companies (section 198(8)). Equity savings funds are run to stay above that level, counting the hedged shares, and fund houses treat them as equity-oriented funds. The scheme documents state how each fund is treated.
- Held 12 months or less: gains are short-term and taxed at 20%.
- Held longer: gains are long-term. The first ₹1.25 lakh a year of long-term gains on equity shares and equity-oriented funds together is tax-free; the rest is taxed at 12.5%.
- Surcharge, where it applies, and 4% cess come on top. STT of 0.001% is charged when you redeem.
This is the main reason the category exists: a return that is much steadier than an equity fund’s, taxed as equity. For resident investors there is no TDS on capital gains when you redeem; dividend (IDCW) payouts above ₹10,000 in a year have 10% tax deducted. Tax rules change; check your own case with a tax adviser.
Equity savings, arbitrage or conservative hybrid?
- Arbitrage fund: almost all of its equity is hedged, so it barely moves with the market; taxed as equity. Lower and steadier returns.
- Equity savings fund: part of its equity is unhedged, so it moves somewhat with the market; taxed as equity.
- Conservative hybrid fund: 10% to 25% in shares and the rest in debt. With more than 65% in debt, gains on units bought since April 2023 are taxed at your slab rate.
See the hybrid funds overview for every hybrid category side by side.
Risks to know
- Market falls: the unhedged shares can lose money in a decline, and the NAV can fall over months, not just days.
- Thin arbitrage gaps: when gaps between cash and futures prices narrow, that part of the return falls.
- Debt: credit risk and interest-rate risk on the bonds the fund holds.
- Costs: trading costs and taxes on the arbitrage trades come out of returns.
How to choose an equity savings fund
- Direct plan: the same portfolio for a lower expense ratio. See direct vs regular plans.
- Unhedged equity: SEBI allows 15% to 40%; the factsheet shows where a fund sits. It sets how much the fund can rise or fall.
- Base expense ratio: compare what fund houses charge; the total depends mostly on trading. How the expense ratio works.
- Returns over three and five years: they show how the mix has worked through more than one market phase.
- Exit load: many funds charge one if you redeem within the first months; the scheme document gives the terms.
Questions people ask
A hybrid mutual fund with at least 65% in equity and equity-related instruments and at least 10% in debt, where much of the equity is hedged with futures. Its unhedged equity must be 15% to 40% of assets, so it moves much less than an equity fund.
Over the year to 13 October 2026, the direct plans of 24 equity savings funds returned between -0.92% and 7.07%, with a median of 2.53%. Returns depend mostly on how much of each fund's equity is unhedged and on how the market moved.
Fund houses treat them as equity-oriented funds, because hedged shares count toward the 65% equity test. Gains on units held 12 months or less are taxed at 20%; held longer, long-term gains above ₹1.25 lakh a year (counted with other equity gains) are taxed at 12.5%.
Both are taxed as equity. An arbitrage fund hedges almost all its equity, so its return stays close to short-term interest rates. An equity savings fund leaves part of its equity unhedged, so it can earn more over time but can also fall when the market falls.
Yes. Over the year to 13 October 2026, 2 of the 24 funds had a negative return. The unhedged shares move with the market, so the NAV can fall over months.
Related
This page is educational research based on AMFI data. It is not a recommendation to invest in any scheme, or personalised investment advice. Mutual fund investments are subject to market risks; read all scheme related documents carefully. Past returns do not guarantee future returns. Registration granted by SEBI, enlistment with IAASB and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.