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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.
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
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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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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.
Minimum 75% allocation in debt and 10% in equity
Low risk-return trade-off
Suitable for investors who are risk-averse and looking for stable returns
Invest through SIPs or lump sum
Funds that invest 65% to 80% of their portfolio in equity securities and 20% to 35% in debt
Funds that invest in equity, debt and arbitrage opportunities. A minimum of 65% of the portfolio is invested in equity and 10% in debt
Hybrid funds which invest 40% to 60% of the portfolio in equity and the remainder in debt
Funds that invest at least 10% of the portfolio in three different asset classes
Funds that invest in arbitrage opportunities. At least 65% of the fund is invested in equity
Conservative Hybrid Funds are debt-oriented schemes
They have low volatility risk
As such, you can invest for any duration and earn stable returns
Conservative Hybrid Funds attract debt taxation on the capital gains earned
The returns earned are taxed at your income tax slab rates
Dividends earned, if any, are taxed at your income tax slab rate
Earn dividends on your investment at regular intervals
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
You can protect against high volatility risks with a limited exposure to equity
Being debt-oriented funds, they have low risk profile and suit investors who don’t want to take high risks on investments.
Conservative Hybrid Funds can be a good choice if you are looking for higher returns than fixed deposits
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.