Beating inflation on a consistent basis

These funds invest roughly one-third of investors' money each in equity, debt and arbitrage. Equity helps grow your capital in the long run by generally delivering inflation-beating returns; debt brings stability, while arbitrage takes advantage of price differences in cash and derivatives markets. What's more, arbitrage offers debt-like risk-return opportunity and equity-like tax advantage. Equity savings funds are perfect for a medium-term investment horizon of around 3-5 years or those seeking regular income. Highlights & trends Performance: Although these funds have limited equity exposure, they offered 17 per cent returns over the last one year, compared to Sensex's 24 per cent returns. Additionally, these funds consistently generate more than 8 per cent higher returns than inflation in any three-year period. Investor interest:

This article was originally published on July 15, 2024.