All you wanted to know about conservative hybrid funds

Looking to earn some extra returns? However, are you not prepared to take huge risks? You may take a closer look at conservative hybrid funds. These schemes may offer 1-2% extra returns than pure debt mutual funds.

  1. What are conservative hybrid funds?
    Conservative equity funds invest 75-90% of their corpus in debt instruments and 10-25% in stocks. Since they invest most of their money in debt they are relatively safer. However, the small equity investments can offer extra returns. However, it also makes them slightly riskier.
  2. Who should invest in these schemes?
    If you are conservative investor looking to earn extra returns, you may invest in these schemes. Provided you are ready to take some extra risk. As said earlier, the equity investments will give you extra returns.
  3. How much extra returns?
    Since 75-90% of the portfolio is invested in debt, your returns will be mostly in line with debt mutual funds. However, the 10-25% investments in stocks may offer you a few percentage points extra. You may hope to get higher returns when the market is doing well.
  4. What should be my investment horizon?
    Since these scenarios invest 10-25% of the corpus in stocks, you should have a slightly longer investment horizon of at least three years.
  5. Which funds can I invest in?
    Our recommendations are ICICI Prudential Regular Savings Fund, Canara Robeco Hybrid Fund, Kotak Debt Hybrid Fund, and SBI Debt Hybrid Fund.


This website uses cookies. By continuing to use this site, you accept our use of cookies.