The performance of equity savings funds in 2022 may come across as disappointing to regular income seekers, to whom we recommend them. An average return of just a shade over 4 per cent was barely enough to provide sufficient income, leave alone bettering inflation which surged past the central bank's comfort limit of 6 per cent. So what's wrong with these funds? Have they failed the expectations of an income seeker? Here's our perspective on their performance and why they are still a good option for those looking for sustainable income in a convenient, hands-off way. Performance blues To put last year's performance in perspective, it was a year when neither equity nor debt, the two mainstream asset classes, did well. A series of events ranging from the Russia-Ukraine conflict to surging inflation and, in turn, rising interest rates contributed to the mediocre performance of debt and equity markets. It is not often that you see both the asset classes failing to beat inflation in the same calendar year. Before 2022, the last time that happened was in the year 2013. In that context, 2022 was an exceptionally bad year in terms of performance and the tepid show of equity savings funds was, therefore, a natur
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