Understanding Equity Savings funds

The exact nature of a lot of mutual funds are driven by the structure and rates of the capital gains tax that are applicable on them. The effect can be good, or it can be bad. Balanced funds were supposed to be low-risk alternatives to equity funds, but the logic of our tax rules has meant that equity-oriented ones have become too equity-heavy and risky. However, over the last couple of years, a new type of balanced fund has become prevalent that combines tax efficiency with a more conservative, safer exposure to equities. Previously, these funds used to be known by the rather odd name of 'Equity Income Fund'. Now, under SEBI's 'Categorization and Rationalization of Mutual Fund Schemes', they have officially been named 'Equity Savings' funds. Le