2 Replies to “What is the difference between equity diversified schemes & tax saver schemes of mutual funds?”

  1. Neither, all things being equal. It depends upon the assumption behind the selections of particular stocks & bond purchases (“the manager”) and the arbitrary movement of the marketplace. That’s a long way of saying that which fund is up or down this month or year cannot be determined ahead of time.

    In the US, diversified funds are most often recommended for retirement investing for folks who do not wish to manage their own investments. When invested in low cost index methodologies, they have the best risk adjusted return over long periods of time (10 years +).

    Tax saver schemes (“Tax managed” in the us) are best used by those folks with a lot of money ($ 500k+) outside of tax deferred accounts that they still want to focus on longer term investing (7+ years) while generating some income year over year.

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