# The dividend will be subject to the availability of distributable surplus and may be lower, depending on the distributable surplus available on the Record Date. Pursuant to payment of dividend, the NAV of the Dividend Option(s) of the above Scheme(s) would fall to the extent of payout and statutory levy, if any.

The HDFC Equity Savings Fund takes exposure to both equity and debt asset classes like a Balanced Fund, but lowers volatility from equity markets by partly hedging the equity exposure. Lower unhedged Equity exposure ensures lower volatility while the combined exposure of Equity + Arbitrage offers the tax efficiency of equity oriented funds while offering higher potential returns as compared to debt funds.

Being taxed like an equity fund, the dividends (which are subject to dividend distribution tax) paid by the Fund are tax-free in the hands of the investor. If the investor chooses to hold the investments for more than 1 year, the resultant capital gains are tax free. This tax efficiency, along with lower volatility and a well-diversified portfolio makes it an attractive alternative to asset allocation through investing in equity and debt separately.

The Fund also has the potential to provide regular income as the debt and arbitrage portions form a predominant component of the portfolio.