Best Conservative Hybrid Fund – Conservative Hybrid Fund

The table below shows a list Of the Best Conservative Hybrid Mutual Funds Based on AUM, NAV, and minimum SIP.

Introduction to Conservative Hybrid Mutual Funds

SBI Conservative Hybrid Fund

SBI Conservative Hybrid Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

SBI Conservative Hybrid Fund as a conservative fund, manages assets valued at ₹10,006.83 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 12.45%. This fund has an exit load of 1% and an expense ratio of 0.62%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 24.22%, Debt – 72.2%, and Other – 3.58%.

ICICI Pru Regular Savings Fund

ICICI Prudential Regular Savings Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

ICICI Prudential Regular Savings Fund as a conservative fund, manages assets valued at ₹3,368.03 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 11.49%. This fund has an exit load of 1% and an expense ratio of 0.91%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 22.74%, Debt – 71.21%, and Other – 6.05%.

HDFC Hybrid Debt Fund

HDFC Hybrid Debt Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013. 

HDFC Hybrid Debt Fund as a conservative fund, manages assets valued at ₹3,316.82 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 11.9%. This fund has an exit load of 1% and an expense ratio of 1.23%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 23.64%, Debt – 72.49%, and Other – 3.87%.

Kotak Debt Hybrid Fund

Kotak Debt Hybrid Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013. 

Kotak Debt Hybrid Fund Direct -Growth as a conservative fund, manages assets valued at ₹2,677.08 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 13.76%. This fund has an exit load of 1% and an expense ratio of 0.48%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 23.15%, Debt – 69.08%, and Other – 7.77%.

Parag Parikh Conservative Hybrid Fund

Parag Parikh Conservative Hybrid Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from Ppfas Mutual Fund. This fund has been in existence for 3 years and 4 months, having been launched on 07/05/2021.

Parag Parikh Conservative Hybrid Fund as a conservative fund, manages assets valued at ₹2,197.03 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 11.79%. This fund has an exit load of 1% and an expense ratio of 0.33%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 14.28%, Debt – 75.71%, and Other – 10.01%.

UTI Conservative Hybrid Fund

UTI Conservative Hybrid Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013. 

UTI Conservative Hybrid Fund as a conservative fund, manages assets valued at ₹1,640.72 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 11.18%. This fund has an exit load of 1% and an expense ratio of 1.18%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 24.39%, Debt – 73.35%, and Other – 2.27%.

Aditya Birla SL Regular Savings Fund

Aditya Birla Sun Life Regular Savings Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Aditya Birla Sun Life Regular Savings Fund as a conservative fund, manages assets valued at ₹1,396.88 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 10.94%. This fund has an exit load of 1% and an expense ratio of 1.02%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 22.1%, Debt – 72.35%, and Other – 5.55%.

Canara Rob Conservative Hybrid Fund

Canara Robeco Conservative Hybrid Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from Canara Robeco Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Canara Robeco Conservative Hybrid Fund as a conservative fund, manages assets valued at ₹966.11 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 11.27%. This fund has an exit load of 1% and an expense ratio of 0.64%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 23.35%, Debt – 70.72%, and Other – 5.93%.

Nippon India Hybrid Bond Fund

Nippon India Hybrid Bond Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Nippon India Hybrid Bond Fund as a conservative fund, manages assets valued at ₹825.74 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 5.44%. This fund has an exit load of 1% and an expense ratio of 1.12%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 13.25%, Debt – 78.59%, and Other – 8.16%.

Baroda BNP Paribas Conservative Hybrid Fund

Baroda BNP Paribas Conservative Hybrid Fund Direct-Growth is a Conservative Hybrid mutual fund scheme from Baroda Bnp Paribas Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Baroda BNP Paribas Conservative Hybrid Fund as a conservative fund, manages assets valued at ₹744.3 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 9.92%. This fund has an exit load of 1% and an expense ratio of 0.51%. According to SEBI, it falls under the Very High-risk category. The fund’s asset allocation comprises: Equity – 21.28%, Debt – 71.89%, and Other – 6.84%.

What Are Conservative Hybrid Funds?

Conservative hybrid funds are mutual funds that invest in a mix of debt and equity, with a greater emphasis on debt instruments. Typically, around 75-90% of the portfolio is allocated to debt, while the rest is in equities.

These funds aim to provide regular income and capital appreciation with lower volatility than pure equity funds. The debt portion offers stability, while the equity portion adds growth potential, making them suitable for conservative investors looking for balanced risk and returns.

Conservative hybrid funds are ideal for investors with a low to moderate risk appetite, offering better returns than fixed deposits while managing market fluctuations effectively. They are recommended for medium-term goals.

Features of the Best Conservative Hybrid Fund India

The main features of the best conservative hybrid fund in India include a balanced allocation between debt and equity, low volatility, consistent returns, and tax efficiency. These funds are designed to offer stability while still providing growth opportunities, making them ideal for cautious investors.

• Balanced Allocation: Conservative hybrid funds allocate 75-90% to debt for stability and 10-25% to equity for growth. This balance ensures lower risk compared to equity-heavy funds while still offering the potential for capital appreciation.
• Low Volatility: With a higher debt allocation, these funds are less volatile than pure equity funds. The debt instruments cushion against market fluctuations, making them suitable for risk-averse investors seeking stable returns.
• Consistent Returns: By focusing on debt, the best conservative hybrid funds provide steady returns over time. While not as high as equity-heavy funds, their returns are more predictable, appealing to investors with low tolerance for risk.
• Tax Efficiency: These funds offer tax advantages compared to fixed deposits, especially with long-term capital gains on the equity portion taxed favorably. This makes them attractive for investors seeking better after-tax returns.

Top Conservative Hybrid Mutual Funds Based on Expense Ratio

The table below shows the Best-performing Conservative Hybrid Mutual Funds Based on the highest to lowest expense ratio.

Best Conservative Hybrid Mutual Funds Based on 3Y CAGR

The table below shows the Best Conservative Hybrid Mutual Funds Based on the Highest 3Y CAGR.

List Of Conservative Hybrid Mutual Funds Based on Exit Load

The table below shows Best Performing Conservative Hybrid Mutual Funds In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Conservative Hybrid Risk Mutual Funds Returns

The table below shows Conservative Hybrid Mutual Funds Returns Based on 1-year returns.

Historical Performance of Conservative Hybrid Funds

The table below shows the Historical Performance Of Conservative Hybrid Mutual Funds based on 5-year return

Factors to Consider When Investing in Conservative Hybrid Mutual Funds

The main factors to consider when investing in conservative hybrid mutual funds include risk tolerance, investment horizon, fund performance, and expense ratio. These factors help investors assess if the fund aligns with their financial goals and provides a suitable balance between risk and returns.

• Risk Tolerance: Conservative hybrid funds carry lower risk due to a higher debt allocation, but they still have some equity exposure. Investors should assess their comfort level with market fluctuations before investing in these funds.
• Investment Horizon: These funds are best suited for a medium-term investment horizon, typically 3 to 5 years. A longer duration allows the equity portion to grow while benefiting from stable debt returns.
• Fund Performance: It’s important to analyze the historical performance of the fund, focusing on its returns in both rising and falling markets. Consistency in returns across various market cycles indicates a reliable fund.
• Expense Ratio: The expense ratio impacts the overall returns of the fund. Lower expense ratios are preferable, as they reduce the costs deducted from the fund’s performance, maximizing net returns for investors.

How to Invest in Top Conservative Hybrid Funds?

To invest in top conservative hybrid funds, begin by researching funds with a strong performance track record, low expense ratio, and reliable fund management. Consider factors like investment horizon, risk tolerance, and goals before selecting a suitable fund.

You can invest directly through the fund house or opt for an online brokerage platform like Alice Blue. Alice Blue provides a user-friendly interface to compare, select, and invest in mutual funds, offering features such as SIPs and lump sum investments.

After selecting the fund, complete your KYC requirements and choose your investment option (SIP or lump sum). Alice Blue simplifies this process with an easy onboarding system, making it convenient for investors to manage their portfolios.

Impact of Market Trends on Top Conservative Hybrid Mutual Funds

Market trends significantly affect conservative hybrid mutual funds, as these funds have a blend of debt and equity. During bullish market trends, the equity portion benefits, boosting overall returns while maintaining the fund’s stability due to its debt allocation.

In bearish market conditions, the debt portion of the portfolio provides a safety cushion, limiting losses from the equity side. However, market downturns can still lead to a temporary dip in overall fund performance, though the impact is lesser than pure equity funds.

Interest rate movements also influence these funds. Rising interest rates can negatively impact bond prices, reducing the debt portion’s returns. Conservative hybrid funds thus balance market volatility with more stable debt components to mitigate risks.

How Conservative Hybrid Funds Perform in Volatile Markets?

In volatile markets, conservative hybrid funds tend to perform more steadily compared to pure equity funds due to their higher debt allocation. The debt component provides a cushion, stabilizing returns and helping mitigate the impact of market fluctuations on the equity portion.

During sharp market downturns, the equity portion may experience losses, but fixed-income securities limit the overall damage. This balance between risk and stability makes conservative hybrid funds suitable for investors seeking moderate exposure to equities with less volatility.

However, if interest rates rise, the bond portion may also face declines, affecting overall performance. Nonetheless, conservative hybrid funds typically offer lower risk compared to equity-focused funds in such turbulent market conditions.

Advantages of Investing in Conservative Hybrid Mutual Funds

The main advantage of investing in conservative hybrid mutual funds is their ability to provide balanced returns with lower risk. By investing primarily in debt and partially in equity, these funds offer income stability while still allowing for potential capital growth.

• Lower Risk Exposure: Conservative hybrid funds prioritize debt investments, reducing overall risk compared to equity-focused funds. This makes them suitable for investors looking for stability while maintaining some exposure to equity for growth.
• Steady Income: With a higher allocation to fixed-income securities, these funds provide consistent returns. The debt portion generates regular income, making it ideal for investors seeking steady cash flow without high market volatility.
• Diversification: These funds offer diversification by investing in both debt and equity. This balance spreads risk across asset classes, enhancing the potential for better returns without the extreme fluctuations seen in equity-only investments.
• Tax Benefits: Conservative hybrid funds offer tax-efficient returns, especially with long-term capital gains taxed at favorable rates. This makes them more attractive than traditional fixed-income instruments like fixed deposits for investors aiming for tax-optimized growth.

Risks of Investing in Conservative Hybrid Mutual Funds

The main risk of investing in conservative hybrid mutual funds is that, despite their lower volatility, they still carry some market risk due to equity exposure. Additionally, interest rate fluctuations and credit risks in debt instruments can affect the overall returns of the fund.

• Equity Market Risk: Even though the equity allocation is lower, conservative hybrid funds are still subject to market fluctuations. A downturn in the equity market can lead to reduced returns, especially in the short term.
• Interest Rate Risk: Changes in interest rates can impact the value of the debt portion of the portfolio. Rising interest rates may decrease bond prices, which could negatively affect the fund’s performance.
• Credit Risk: If the debt securities in the portfolio are downgraded or the issuer defaults, it could lead to lower returns or capital loss. Choosing funds with high-quality debt instruments can mitigate this risk.
• Lower Returns Compared to Equity Funds: While offering lower risk, conservative hybrid funds typically deliver lower returns than pure equity funds. This can be a disadvantage for investors seeking higher long-term growth from their investments.

Contribution of Conservative Hybrid Funds to Portfolio Diversification

Conservative hybrid funds contribute to portfolio diversification by balancing investments between equity and debt. This mix reduces risk while providing potential for growth, as the equity portion captures market gains, and the debt component offers stability and consistent income.

These funds help diversify risk across different asset classes, making them ideal for investors seeking moderate returns with lower volatility. By combining the growth potential of equities and the safety of bonds, conservative hybrid funds add a balanced layer to a well-rounded investment portfolio.

Who Should Invest in Conservative Hybrid Funds?

Conservative hybrid funds are ideal for investors with a low to moderate risk appetite seeking a balance between income and growth. They suit individuals looking for stable returns with reduced market volatility, making them a good choice for cautious investors.

They are also appropriate for those with medium-term financial goals, such as saving for a child’s education or a down payment on a home. The blend of debt and equity provides steady income while allowing for potential capital appreciation over time.

Impact of Fund Manager Expertise on Conservative Hybrid Mutual Funds Performance

The expertise of a fund manager plays a crucial role in the performance of conservative hybrid mutual funds. A skilled manager can effectively balance the debt and equity components, optimizing returns while minimizing risk and managing market fluctuations.

Experienced fund managers also excel in selecting high-quality debt securities and making informed equity investments, enhancing overall fund stability and growth. Their strategic asset allocation and market timing decisions directly influence the fund’s ability to achieve consistent and reliable returns.

How Much Money Should I Invest In Conservative Hybrid Funds?

The amount to invest in conservative hybrid funds depends on your financial goals, risk tolerance, and investment horizon. Generally, they are suitable for allocating a portion of your portfolio, especially if you seek stability with moderate growth.

For a balanced approach, consider investing 20-40% of your portfolio in conservative hybrid funds. This allocation helps achieve stability while still allowing for potential growth from equity exposure, fitting well within a diversified investment strategy.

FAQs – List Of Conservative Hybrid Mutual Funds

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