Equity savings funds could be an alternative to debt funds under certain conditions, says Dhirendra Kumar
Is it better to construct the debt component of asset allocation with equity savings to avoid pure debt funds altogether?
It depends. If you have a small amount of money and if you want a mix of disciplined and conservative asset allocation embedded in a single fund, then it's a good way of doing it. But you have to be a long-term investor. If you are a conservative investor and don't need the money for five years, then sure, go ahead and do it. But if you are considering this in the short term, this may not be a good idea.