Top tax-efficient MF strategies for risk-averse investors

By

, ET BureauLast Updated: May 27, 2025, 06:35:00 AM IST

Synopsis

As equity valuations soar, risk-averse affluent investors are exploring tax-efficient alternatives beyond the stock market. Arbitrage funds, income plus arbitrage FoFs, multi-asset allocation, and precious metal funds are gaining popularity. These strategies offer compelling post-tax returns compared to traditional fixed income, while minimizing direct equity exposure, attracting tax-conscious capital allocation.

With equity valuations running high, risk-averse investors are maintaining their distance from the stock market. But to affluent investors seeking tax-effi cient options beyond equities, a new breed of mutual fund strategies offer compelling alternatives.

Categories such as arbitrage funds, income plus arbitrage FoFs, multi-asset allocation and precious metal funds (gold/silver) are gaining traction. These funds typically avoid direct equity exposure while offering better post-tax returns than traditional fixed income.

A look at categories and highlights in the top-performing schemes for taxconscious capital allocation.

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