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Bandhan Equity Savings Fund’s 10-15% net equity allocation replicates the Nifty 100 LowVol 30 passive structure, which not only controls volatility but also has been generating superior returns compared to the Nifty 100 index.

65% gross allocation to equity from a sizeable allocation to arbitrage enables the fund to offer investors equity related tax advantages while keeping net equity quite low.

With the new income tax exemption limit of Rs. 12 lakhs, dividend plans (IDCW) may be more tax advantageous compared to SWPs – a fact that Bandhan MF has understood and is therefore highlighting its monthly dividend/IDCW option prominently now.

Sirshendu says this fund is the ideal crossover product for conservative investors who are tiptoeing into the world of equity after being fixed income investors all along. Its low volatility focus, controlled equity exposure and tax advantaged structure enable it to offer healthy inflation fighting post tax returns.