Can you clarify your doubt in a detailed way like equity saving funds means ELSS funds and balanced funds means equity-oriented balanced funds or debt-oriented balanced funds?
Not ELSS….Some site using this term..and balanced fund means equity oriented hybrid….
Got your point. Equity savings funds are nothing but hybrid products which include Debt+Arbitrage+Equity portion. Such products pushed as tax free safe instruments after a year of gap. Because of their equity exposure, they are tax free after a year. However, what type of debt exposure they have and how much the direct equity exposure is most important than the tax free return after a year. They are in my view risky. Never try to experiment in such products who change their face so often and hard for you to identify such change. Instead, go for short term or ultra short term debt fund for your debt investment or even pure arbitrage fund.In equity-oriented balanced fund you know that around 65% or more is in equity. So you consider and investment based on the risk. However, in savings fund, it is unknown to you. I suggest equity-oriented balanced funds over savings fund for your long term. However, don’t invest in savings fund for your short term investment.