Mirae Asset Equity Savings Fund has emerged as the top performer in the equity-savings category with a three-year return of 9.8%. While this highlights consistent long-term growth, investors should evaluate these funds based on their unique blend of equity, debt, and arbitrage strategies rather than returns alone.
What Happened
Mirae Asset Equity Savings Fund has secured the top position among equity-savings mutual funds with a three-year compound annual growth rate (CAGR) of 9.8%, according to data as of June 29, 2026. This ranking evaluates schemes with over ₹1,500 crore in assets under management. The fund has outperformed its benchmark by 3.1 percentage points over the three-year period, where the benchmark returned 6.7%. Close competitors in this category include Kotak Equity Savings Fund, which posted a 9.2% return, and SBI Equity Savings Fund, with a 9.2% return for the same period.
How Equity Savings Funds Work
Equity savings funds are a specific type of hybrid mutual fund. They invest across three distinct asset classes: equity, debt, and arbitrage. The goal is to provide a smoother investment experience compared to pure equity funds. The equity portion provides growth potential, the debt portion offers stability, and the arbitrage component helps hedge against market volatility while potentially offering tax-efficient returns. Because these funds use complex strategies to reduce risk, they often behave differently than standard equity funds during market downturns.
Peer Performance And Asset Size
While Mirae Asset Equity Savings Fund led in the three-year timeframe, asset size and performance rankings vary across different time horizons. Kotak Equity Savings Fund manages the largest corpus among the top five funds, standing at ₹10,108.2 crore. This large asset base allows the fund to maintain significant liquidity, though larger funds may face different challenges in terms of agility compared to smaller ones. The performance gaps between these funds are relatively narrow, indicating high competition in the category.
The Short-Term Vs Long-Term View
Data shows that short-term performance can fluctuate significantly. For instance, while Mirae Asset leads in three-year returns, other funds have topped the charts over shorter durations. DSP Equity Savings Fund recently claimed the top spot for one-month returns at 1.5%, while Kotak Equity Savings Fund led the one-year returns with 4.0%. This variation highlights why investors should not rely solely on short-term snapshots when choosing a fund. Strategies that work in a trending market might not perform the same way in a sideways market, which is why the three-year or five-year performance is often a better indicator of a fund manager's consistency.
What Investors Should Track
When looking at equity savings funds, returns are only one part of the picture. Investors may consider tracking the expense ratio, as higher fees can eat into returns over the long term. It is also useful to check the portfolio turnover ratio to understand how frequently the manager trades within the fund. Additionally, monitoring the fund's asset allocation—how much is kept in debt versus equity—helps investors understand the fund's risk profile. Finally, reading the latest factsheet helps confirm whether the fund's strategy aligns with the investor's own risk tolerance and financial goals.