When the bulls are ruling the market, as they are right now, incremental investing in equity seems risky. But it doesn't mean that an investor should stay on the fence and settle down with earning returns lower than inflation also. The need of limiting downside risk while also earning inflation beating returns can be met through Hybrid Funds. Hybrid Funds invest in both equity and debt but in controlled and balanced way to mitigate the downside risk that may arise from volatility in equity. BSL Equity Savings Fund is one such hybrid proposition which provides the best of three worlds, not just two:
· The potential upside & kicker of equity
· Stable interest income from Debt
· Low volatility equity arbitrage
Along with the above benefits, the cherry on the pie is tax efficiency (equity taxation). Hence, the key differentiator of this product is that it is an efficient mix of the 3 strategies providing opportunities to participate in market upside while restricting the downside with lower volatility.
In the Hybrid Category, Birla SunLife Equity Savings Fund features more as a debt oriented hybrid which is slightly more aggressive than a MIP fund but less aggressive than BAF kind of offering. Hence, as an investment proposition, the fund is at a sweet spot for conservative equity investors. Being a debt oriented hybrid offering, the fund endeavours to pay regular dividends to its investors. The fund has been paying out regular quarterly dividend for the last one year. In the last one year the average annual dividend yield is in the range of 6% - 8%.
Top 10 Tax Saver Mutual Funds for 2017 - 2018
Best 10 ELSS Mutual Funds to Invest in India for 2017
1. DSP BlackRock Tax Saver Fund
2. Tata India Tax Savings Fund
3. Birla Sun Life Tax Relief 96
4. ICICI Prudential Long Term Equity Fund
5. Invesco India Tax Plan
6. Franklin India TaxShield
7. Reliance Tax Saver (ELSS) Fund
8. BNP Paribas Long Term Equity Fund
9. Axis Tax Saver Fund
10. Sundaram Diversified Equity Fund
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