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Aditya Birla Capital LimitedAditya Birla Capital Limited (“ABCL”) is a listed systemically important non-deposit taking Non-Banking Financial Company (NBFC) and the holding company of the financial services businesses. ABCL and its subsidiaries/JVs provides a comprehensive suite of financial solutions across Loans, Investments, Insurance, and Payments to serve the diverse needs of customers across their lifecycles. Powered by over 61,600 employees, the businesses of ABCL have a nationwide reach with over 1,690 branches and more than 200,000 agents/channel partners along with several bank partners.
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Conservative Hybrid Mutual Funds
- Average returns - Dynamic
- Number of funds - (Static)
What is a Conservative Hybrid Mutual Funds?
A Conservative Hybrid Fund is a debt-oriented hybrid mutual fund which invests a primary portion of its portfolio in debt instruments and has limited equity exposure.
Advantages of Conservative Hybrid Funds
Low risk
Since a primary portion of the portfolio is invested in debt instruments, you can avoid volatility risks and enjoy stable returns.
Portfolio diversification
Enjoy a diversified portfolio of debt instruments with a limited exposure to equity too for attractive returns.
Good returns
Conservative Hybrid Funds can potentially deliver better returns than fixed deposits with the added equity component.
Explore Conservative Hybrid Funds
Most Popular
AUM: 23427(Cr)
Risk: Very High
- MIN. INVESTMENT 500
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹10000
- Get (30 Yrs) ₹24,850*
*Projections/estimations is backtested using historical data.
Most Popular
- AUM: 23427(Cr)
- Risk: High
- MIN. INVESTMENT 1000
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹15000
- Get (30 Yrs) ₹34,850*
*Projections/estimations is backtested using historical data.
Conservative Hybrid Funds Returns Calculator
REGULAR INVESTMENT
SIP
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
START SIPONE TIME INVESTMENT
Lump sum
Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.
INVEST LUMPSUMTotal Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
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Understanding Conservative Hybrid Funds
Table of Contents
What are Conservative Hybrid Funds?What are the features of Conservative Hybrid Funds?What are the different types of hybrid funds?What should be the investment horizon for Conservative Hybrid Funds?What is the tax implication of Conservative Hybrid Funds?What are the payout options?Who should invest in Conservative Hybrid Funds?
What are Conservative Hybrid Funds?
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Conservative Hybrid Funds are debt-oriented hybrid mutual fund schemes that invest at least 75% to 90% of the total portfolio in debt instruments and 10% to 25% of the portfolio in equity securities. These funds offer a stable return potential with low risks.
What are the features of Conservative Hybrid Funds?
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Minimum 75% allocation in debt and 10% in equity
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Low risk-return trade-off
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Suitable for investors who are risk-averse and looking for stable returns
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Invest through SIPs or lump sum
What are the different types of hybrid funds?
Aggressive Hybrid Funds
Funds that invest 65% to 80% of their portfolio in equity securities and 20% to 35% in debt
Equity Savings Funds
Funds that invest in equity, debt and arbitrage opportunities. A minimum of 65% of the portfolio is invested in equity and 10% in debt
Balanced Hybrid Fund
Hybrid funds which invest 40% to 60% of the portfolio in equity and the remainder in debt
Multi-Asset Allocator Fund
Funds that invest at least 10% of the portfolio in three different asset classes
Arbitrage Funds
Funds that invest in arbitrage opportunities. At least 65% of the fund is invested in equity
What should be the investment horizon for Conservative Hybrid Funds?
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Conservative Hybrid Funds are debt-oriented schemes
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They have low volatility risk
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As such, you can invest for any duration and earn stable returns
What is the tax implication of Conservative Hybrid Funds?
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Conservative Hybrid Funds attract debt taxation on the capital gains earned
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The returns earned are taxed at your income tax slab rates
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Dividends earned, if any, are taxed at your income tax slab rate
What are the payout options?
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Dividend option
Earn dividends on your investment at regular intervals
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Growth option
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
Who should invest in Conservative Hybrid Funds?
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New equity investors
You can protect against high volatility risks with a limited exposure to equity
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Investors who are risk-averse
Being debt-oriented funds, they have low risk profile and suit investors who don’t want to take high risks on investments.
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Investors looking for good returns
Conservative Hybrid Funds can be a good choice if you are looking for higher returns than fixed deposits
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FAQs On Conservative Hybrid Funds
A Conservative Hybrid Fund is a type of mutual fund which invests the majority of the fund in debt securities and an equity part. It is named as conservative as its assets are primarily invested in debt securities which are highly safe avenues. These funds offer moderate returns with lower volatility due to the secured and stable debt portion.
Conservative Hybrid Funds invest 75% to 90% of their assets in debt instruments and the remaining 10% to 25% in equity instruments. The higher debt portion and lower equity allocation provide a conservative risk profile to the fund.
Most Conservative Hybrid Funds allow investment through SIP for regular and systematic investment. You should check the specific terms of the Conservative Hybrid Funds you are planning to invest in.
Conservative Hybrid Funds are relatively less risky than the other hybrid funds. Its portfolio is designed to make it a safe avenue carrying relatively lower risk due to its higher debt allocation, and focusing towards the safety of the principal amount along with providing stable returns. It maximises returns while minimising risk and is unaffected by market fluctuations.
While investing in Conservative Hybrid Funds, it is necessary to consider your investment goals and time horizon. These funds are ideal for medium to long-term investments. Further, one must also consider the expense ratio before investing in Conservative Hybrid Funds. Choose a fund with a low expense ratio.
Investors with a low-risk appetite should invest in conservative funds as they secure the principal amount and generate constant returns with a smaller part invested in equity for beating inflation and creating capital appreciation. It is also suitable for investors nearing retirement as retirees generally look for safe investment avenues to get returns and accumulate wealth without the risk of losing the principal amount.
Conservative Hybrid Funds are open-ended mutual funds which can be redeemed as and when required. Some Conservative Hybrid Funds have a lock-in period of generally three years during which you would have to pay an exit load for redemption.
The investment horizon for Conservative Hybrid Funds is generally medium to long term i.e. 3-5 years or more to provide potential higher returns and navigate the market cycles.
Conservative Hybrid Funds provide stable and moderate returns as it is inclined toward debt instruments. They offer better returns than FD but lower returns than pure equity funds as they have a small equity component and low risk.
Conservative Hybrid Funds are taxed as debt funds since their majority value is invested in debt. These funds if sold within 3 years are taxed as short-term capital gains which are added to the income of the investor and taxed as the applicable slab rate. However, if sold after holding it for 3 years or more, it is taxed as long-term capital gains at 20% with indexation benefits.
You can expect regular income from Conservative Hybrid Funds through dividends. These funds invest a significant portion of up to 90% in debt instruments to generate interest income.
The credit quality of debt instruments, fund managers' decisions and strategies, market conditions and dividend distributions all impact the performance of Conservative Hybrid Funds. These funds are not much affected by interest rate changes and market fluctuations as in equity funds.
Exit loads are charges imposed when the mutual funds are redeemed within a specified holding period, generally known as the lock-in period. Some conservative mutual funds may have a lock-in period during which an exit load may be charged for redeeming the funds. Check the lock-in period and exit load charges before investing to make an informed decision.
You can redeem the Conservative Hybrid Fund whenever you want. However, you should check before redemption whether exit load charges are applicable or not. Generally, redeeming Conservative Hybrid Funds before the three-year lock-in period attracts exit load charges.
These funds are considered good for retirement planning, especially for investors having a low-risk appetite and are looking for a balance of growth potential and capital preservation. The debt component of the Conservative Hybrid Funds provides returns in the form of interest and dividends whereas the equity component provides the potential of accumulating wealth for your retirement, all of it without the risk of losing the principal amount.
Yes, you can invest a lump sum amount in Conservative Hybrid Funds considering your financial goals and risk tolerance before investing.
Conservative Hybrid Funds provide better returns than FD and have the potential for capital appreciation through the inclusion of equity in the portfolio. FDs provide predictable and fixed returns. The choice between the two is based on your investment goals and risk appetite.
Types of Hybrid Mutual Funds
Equity-Oriented Fund
Other asset class funds
Debt Funds
Invest in debt securities for low risks and stable returns.
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Equity Fund
Give your savings the growth they deserve. Invest in Equity Funds and unlock the potential of long-term growth
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ETF Funds
Invest in funds listed and traded on the stock exchange
Fund of Funds
Mutual funds that invest in other mutual funds both in India and globally
Index Fund
Passively-managed mutual funds tracking a particular index
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