The equity market is having a rough time in the last few months due to multiple reasons. It is not certain when the market will get corrected but the first quarter of 2019 is likely to remain hostile. Reliance Equity Savings Fund is a late entrant which has been a consistent performer since inception in May 2015. With an informed investment strategy, one can take advantage of this equity savings fund in the current market conditions. 

It is an equity savings fund which uses a variety of instruments to generate regular income and capital appreciation. Reliance Equity Savings Fund managers Mr Anand Devendra Gupta, Mr Sanjay Parekh, and Ms Anju Chhajer use a mixed portfolio of equity, debt, derivatives, money market instruments, and arbitrage opportunities to counter the volatility in the equity market and provide constant growth. 

The equity investments are made in the large-cap stocks which ensure long-term wealth at a moderate risk while the debt instruments are of lower credit ratings with medium rate sensitivity. The fund manager seeks to produce capital appreciation from the equity as well as debt instruments while balancing the volatility through the derivatives and money market instruments. 

The equity market has been on a downfall from the last few months and the majority of the potential stocks in every category have faced severe losses. Due to this, a majority of the investors in equities and equity mutual funds have faced severe losses. The market is expected to remain volatile for a while due to which equities are risky. In an equity savings fund, the fluctuations in the equity market are balanced by the debt and arbitrage opportunities. It stops the NAV to fall further and limits the drawdown. However, the returns are moderate to low but the losses can be avoided by investing in Reliance Equity Savings Fund. 

By investing in Reliance Equity Savings Fund, investors can bypass the volatile trends in the equity market. The conservative investors can get the benefit of decent returns at low risk. Due to arbitrage opportunities, the fund limits the negative returns and in the positive market conditions, the returns are increased through equity instruments. The fund may not be helpful for the aggressive investors seeking high returns in the long term but the conservative investors or those looking for a short term investment can take the advantage of the fund if they match with the objective of the fund.  

Reliance Equity Savings Fund has performed decently in recent times but can be a valuable platform to invest in the upcoming market condition. The fund can be used to skip the volatile trends in the equity market. However, the equity market is likely to be corrected in long term investment but instead of making a lumpsum investment in an equity scheme, Reliance Equity Savings Fund can be used for lump sum investment from which STP can be done in the equity scheme.eliance Equity Savings Fund can be used for lump sum investment from which STP can be done in the equity scheme.