Conservative Hybrid Funds are hybrid mutual funds that allocate between 75% and 90% of their entire assets to debt instruments and the remaining 10% to 25% to equities. With a small portion allocated to equities, conservative hybrid funds generally invest in FD-like securities. These funds aim to minimize risk while offering higher returns than bank fixed deposits.
The main features of a conservative fund are as follows:
Less Risk : Since they invest mostly in debt securities, these mutual funds are unaffected by market fluctuations. You can invest in such funds to maximize rewards and minimize risk.
Comparatively Moderate Returns :Moreover, these funds do not offer returns as much as equity funds and more riskier funds.
Suitable for Conservative Investors:They are suitable for investors who have a lower tolerance for risk when they comes to investing.
Tenure:Conservative mutual funds are known to perform well in the moderate to long-term period.
Lets have a closer look.
Now let us jump and check about these top 15 mutual fund schemes.
Parag Parikh Conservative Hybrid Fund
Fund Performance: The Parag Parikh Conservative Hybrid Fund Fund has given 11.89% annualized returns in the past three years and 0.00% in the last 5 years and 0.00% in the last 10 years. The Parag Parikh Conservative Hybrid Fund Fund comes under the Equity category of PPFAS Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Parag Parikh Conservative Hybrid Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks to generate regular income through investments predominantly in debt and money market instruments. The scheme also seeks to generate long term capital appreciation from the portion of equity investments under the scheme.
Fund Performance: The HSBC Conservative Hybrid Fund Fund has given 9.20% annualized returns in the past three years and 9.39% in the last 5 years and 8.23% in the last 10 years. The HSBC Conservative Hybrid Fund Fund comes under the Equity category of HSBC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HSBC Conservative Hybrid Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks to generate reasonable returns through investments in debt and money market instruments. It would also invest in equity and equity related instruments to seek capital appreciation, but this allocation shall not exceed 15 per cent.
Fund Performance: The Kotak Debt Hybrid Fund has given 11.12% annualized returns in the past three years and 12.32% in the last 5 years and 10.23% in the last 10 years. The Kotak Debt Hybrid Fund comes under the Equity category of Kotak Mahindra Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Kotak Debt Hybrid via lump sum is ₹ 100 and via SIP is ₹ 1000.
Scheme Objective: The scheme aims to enhance returns over a portfolio of debt instruments with a moderate exposure in equity and equity related instruments.
Fund Performance: The HDFC Hybrid Debt Fund Fund has given 11.11% annualized returns in the past three years and 11.45% in the last 5 years and 9.45% in the last 10 years. The HDFC Hybrid Debt Fund Fund comes under the Equity category of HDFC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HDFC Hybrid Debt Fund via lump sum is ₹ 100 and via SIP is ₹ 500.
Scheme Objective: The scheme aims to generate regular returns through investment primarily in debt and money market instruments. It will also invest in equity and equity related securities to generate long-term capital appreciation.
Fund Performance: The UTI Conservative Hybrid Fund Fund has given 10.28% annualized returns in the past three years and 10.22% in the last 5 years and 8.97% in the last 10 years. The UTI Conservative Hybrid Fund Fund comes under the Equity category of UTI Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in UTI Conservative Hybrid Fund via lump sum is ₹ 5000 and via SIP is ₹ 500.
Scheme Objective: Endeavors to make periodic income distribution to unit holders through investments in fixed income securities and equity & equity related instruments.
Scheme Manager: Amit Kumar Premchandani, Jaydeep Bhowal.
