Conservative Hybrid Mutual Funds

Conservative Hybrid Mutual Funds aim to offer stability and steady income by blending debt and equity in a single portfolio. With a higher allocation to high-quality debt instruments, a Conservative Fund focuses on capital preservation while using limited equity exposure to enhance returns.

Let’s explore how a Conservative Fund works, who it’s best suited for, and how it stacks up against other hybrid options so you can make smart, risk-aware investment decisions.

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List of Conservative Hybrid Mutual Funds

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Search Result - 19 Mutual Funds

Fund Name	Fund Size (Cr.)	3Y Returns	5Y Returns
Kotak Debt Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	3,129	12.97%	12.88%	Invest
Parag Parikh Conservative Hybrid Fund-Dir Growth Hybrid Conservative Hybrid Fund	2,665	12.33%	-	Invest
HDFC Hybrid Debt Fund - Direct Growth Hybrid Conservative Hybrid Fund	3,406	12.15%	12.25%	Invest
HSBC Conservative Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	160	11.97%	10.41%	Invest
UTI-Conservative Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	1,684	11.71%	12.06%	Invest
SBI Conservative Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	9,643	11.71%	12.18%	Invest
ICICI Pru Regular Savings Fund - Direct Growth Hybrid Conservative Hybrid Fund	3,188	11.66%	11.22%	Invest
Franklin India Conservative Hybrid Fund - Dir Growth Hybrid Conservative Hybrid Fund	204	11.57%	10.19%	Invest
DSP Regular Savings Fund - Direct Growth Hybrid Conservative Hybrid Fund	173	11.32%	10.48%	Invest
Aditya Birla SL Regular Savings Fund-Dir Growth Hybrid Conservative Hybrid Fund	1,385	11.10%	12.44%	Invest

Fund Name	1Y Returns	Rating	Fund Size (Cr.)
Kotak Debt Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	7.57% Fund Size (Cr.) - 3,129 Invest
Parag Parikh Conservative Hybrid Fund-Dir Growth Hybrid Conservative Hybrid Fund	9.22% Fund Size (Cr.) - 2,665 Invest
HDFC Hybrid Debt Fund - Direct Growth Hybrid Conservative Hybrid Fund	6.68% Fund Size (Cr.) - 3,406 Invest
HSBC Conservative Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	7.13% Fund Size (Cr.) - 160 Invest
UTI-Conservative Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	8.58% Fund Size (Cr.) - 1,684 Invest
SBI Conservative Hybrid Fund - Direct Growth Hybrid Conservative Hybrid Fund	7.33% Fund Size (Cr.) - 9,643 Invest
ICICI Pru Regular Savings Fund - Direct Growth Hybrid Conservative Hybrid Fund	9.26% Fund Size (Cr.) - 3,188 Invest
Franklin India Conservative Hybrid Fund - Dir Growth Hybrid Conservative Hybrid Fund	8.75% Fund Size (Cr.) - 204 Invest
DSP Regular Savings Fund - Direct Growth Hybrid Conservative Hybrid Fund	9.50% Fund Size (Cr.) - 173 Invest
Aditya Birla SL Regular Savings Fund-Dir Growth Hybrid Conservative Hybrid Fund	9.93% Fund Size (Cr.) - 1,385 Invest

What are Conservative Hybrid Funds?

Conservative Hybrid Mutual Funds are a type of hybrid fund that invest primarily in debt instruments (75%–90%) and a smaller portion in equities (10%–25%). This blend offers a balance of steady income and limited market exposure, making it ideal for conservative investors. The high debt allocation ensures capital preservation, while the equity portion provides modest growth to help beat inflation. In simple terms, Conservative Hybrid Mutual Funds carry low-risk profiles with stable returns.

How do Conservative Hybrid Mutual Funds Work?

A Conservative Hybrid Fund keeps things simple. Most of your money goes into safer debt instruments, while a small part is invested in equities to slightly boost returns. This careful mix helps the fund grow your money gradually, without exposing it to too much risk.

1. Debt-heavy allocation: Around 75–90% is invested in quality debt instruments for stability.
2. Equity for growth: 10–25% typically goes into large-cap stocks to help beat inflation.
3. Ongoing rebalancing: Asset mix is tweaked over time to maintain the fund’s conservative stance.
4. Capital protection first: The core goal is to grow money safely while offering better returns than traditional savings.

Characteristics of Conservative Hybrid Funds

1. Debt-Heavy Allocation: Conservative Hybrid Funds invest 75–90% in high-quality debt instruments, ensuring stability and consistent income. Around 10–25% is allocated to equities, typically large-cap stocks, for modest capital growth.
2. Low Risk Profile: Designed for conservative investors, Conservative funds focus on capital preservation over aggressive returns.
3. Steady Income Generation: A strong debt component helps provide regular income with lower volatility and also hedge against downside risk amid market volatility.

Who Should Invest in Conservative Hybrid Mutual Funds?

1. Risk-Averse Investors: Those who prioritise capital safety and prefer low market exposure will find Conservative Funds to invest in highly suitable.
2. First-Time Mutual Fund Investors: Beginners looking to ease into market-linked investments can benefit from the balanced structure of conservative hybrid funds.
3. Short to Medium-Term Investors: Ideal for investment horizons of 2 to 5 years, offering steady returns with limited volatility.
4. Income-Seeking Individuals: Those aiming for regular income through interest from debt instruments while gaining from limited equity exposure.
5. Retired or Near-Retirement Investors: Offers stability and preservation of wealth while keeping inflation in check.

What are the Advantages of Investing Conservative Hybrid Mutual Funds?

1. Reduced Market Volatility: The high debt allocation shields investors from major market swings.
2. Better Than FD Returns: Limited equity exposure allows scope for inflation-beating growth.
3. Low-Stress Investing: Ideal for those who prefer minimal portfolio intervention and steady returns.
4. Retirement-Friendly Option: Suitable for retirees seeking safety with mild capital appreciation.
5. Inflation Shield: Equity allocation aims to generate inflation-beating returns over time.

How to Invest in Conservative Hybrid Funds?

Investing in Conservative Funds to Invest In is simple and convenient with the 5paisa app. Here’s how to get started quickly:

1. Define Your Goal: Understand your risk tolerance and financial objectives.
2. Choose Fund Type: Pick a Conservative Hybrid Fund suited to your needs, you can browse through the comprehensive list available on the 5paisa app.
3. Complete KYC Fast: Enjoy hassle-free, paperless KYC with fast approval on the 5paisa app.
Select Investment Mode: Choose between SIP for regular investing or lump sum for one-time investment.
Continue Using the 5paisa App: Benefit from an easy-to-use interface, real-time portfolio tracking, and more!

Factors to Consider While Investing in Conservative Mutual Funds

1. Asset Allocation Strategy: Conservative hybrid funds usually put around 75–90% of their money into debt and 10–25% into stocks. This keeps risk fairly low, but the equity part can still cause some ups and downs. It’s a good idea to check the fund’s mix to see if it feels right for you.
2. Expense Ratio: Since these are low-risk funds with moderate return potential, opt for schemes with lower expense ratios to potentially maximise net gains.
3. Taxation Rules: Returns are taxed like debt funds. Gains are taxed as per income slab.
4. Personal Investment Goals: Conservative funds are ideal for investors prioritising capital protection with steady, inflation-beating returns. If you are someone that can afford to take some more risk, maybe this type of fund is not ideal for you.

Tax Rules For Conservative Mutual Funds

Conservative Hybrid Mutual Funds are classified as debt-oriented schemes for taxation purposes. As per the latest tax rules, all capital gains from these funds are taxed based on the investor’s income tax slab, regardless of how long the investment is held. This means:

1. Short-term or Long-term Gains: Whether you redeem your investment in less than three years or after, the gains are added to your total income and taxed as per your applicable income slab.
2. High-Income Impact: If you fall under the highest tax bracket, your gains from Conservative Funds to Invest In could be taxed up to 30%.
3. No Indexation Benefit: Unlike older rules, indexation benefits are no longer available for long-term holdings.

Risks Involved When Investing in Conservative Hybrid Funds

1. Interest Rate Risk: Since a large portion of the portfolio is held in debt instruments, rising interest rates can lead to a drop in bond prices, impacting returns.
2. Market Volatility Risk: Though equity exposure is limited (10–25%), it still subjects the portfolio to market swings. This can lead to short-term losses during equity downturns.
3. Inflation Risk: Some debt instruments may offer returns that don’t keep pace with inflation, especially in high-inflation periods, reducing real returns.
4. Credit Risk: There's a chance that the issuers of corporate bonds or non-government debt may default on repayments, affecting overall fund performance.
5. Limited Growth Potential: With lower equity exposure, the scope for aggressive capital appreciation is restricted—these funds suit conservative, not growth-focused investors.

Popular Conservative Hybrid Mutual Funds

Fund Name
Min Investment Amt
AUM
3Y Returns

Kotak Debt Hybrid Fund - Direct Growth

₹ 100

₹ 3,1290

12.97%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,129

3Y Return

12.97%

Parag Parikh Conservative Hybrid Fund-Dir Growth

₹ 1000

₹ 2,6650

12.33%

Min SIP Investment Amt

₹ ₹ 1000

AUM (Cr.)

₹ 2,665

3Y Return

12.33%

HDFC Hybrid Debt Fund - Direct Growth

₹ 100

₹ 3,4060

12.15%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,406

3Y Return

12.15%

HSBC Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 1600

11.97%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 160

3Y Return

11.97%

UTI-Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 1,6840

11.71%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 1,684

3Y Return

11.71%

SBI Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 9,6430

11.71%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 9,643

3Y Return

11.71%

ICICI Pru Regular Savings Fund - Direct Growth

₹ 100

₹ 3,1880

11.66%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,188

3Y Return

11.66%

Franklin India Conservative Hybrid Fund - Dir Growth

₹ 500

₹ 2040

11.57%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 204

3Y Return

11.57%

DSP Regular Savings Fund - Direct Growth

₹ 100

₹ 1730

11.32%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 173

3Y Return

11.32%

Aditya Birla SL Regular Savings Fund-Dir Growth

₹ 100

₹ 1,3850

11.10%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 1,385

3Y Return

11.10%

FAQs

How long should I stay invested in Conservative Hybrid Mutual Funds?

A holding period of 2 to 3 years is ideal for Conservative Hybrid Mutual Funds. This gives the debt component time to generate stable returns while allowing the equity portion to absorb short-term volatility and potentially boost overall performance over time.

What kind of returns can I earn from Conservative Hybrid Funds?

Returns from conservative hybrid funds usually fall between 6% and 9% a year, though this can vary with market trends and how the fund performs. These funds try to beat traditional fixed deposits by adding a small equity portion to an otherwise stable debt portfolio.

Are conservative funds better than FDs?

Conservative funds offer better inflation-adjusted returns than fixed deposits and provide some growth potential through equity. However, they come with mild market risks, unlike FDs which are risk-free. They work well for investors seeking a middle ground between returns and safety.

1. Money Market Funds: Invest in short-term debt instruments for high liquidity and low risk.
2. Short-Term Bond Funds: Focus on bonds maturing in 1–3 years, balancing returns with safety.
3. Ultra Short-Term Funds: Invest in instruments with slightly longer maturity than money market funds.
4. Stable Value Funds: Aim to preserve capital while offering modest growth, ideal for low-risk investors.

Each of these offers a different mix of stability, liquidity, and return potential, depending on your needs.

Conservative Hybrid Mutual Funds

Kickstart your SIP journey with just ₹100!

List of Conservative Hybrid Mutual Funds

Category

Sub Category

Rating

What are Conservative Hybrid Funds?

How do Conservative Hybrid Mutual Funds Work?

Characteristics of Conservative Hybrid Funds

Who Should Invest in Conservative Hybrid Mutual Funds?

What are the Advantages of Investing Conservative Hybrid Mutual Funds?

How to Invest in Conservative Hybrid Funds?

Factors to Consider While Investing in Conservative Mutual Funds

Tax Rules For Conservative Mutual Funds

Risks Involved When Investing in Conservative Hybrid Funds

Popular Conservative Hybrid Mutual Funds

Kotak Debt Hybrid Fund - Direct Growth

₹ 100

₹ 3,1290

12.97%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,129

3Y Return

12.97%

Parag Parikh Conservative Hybrid Fund-Dir Growth

₹ 1000

₹ 2,6650

12.33%

Min SIP Investment Amt

₹ ₹ 1000

AUM (Cr.)

₹ 2,665

3Y Return

12.33%

HDFC Hybrid Debt Fund - Direct Growth

₹ 100

₹ 3,4060

12.15%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,406

3Y Return

12.15%

HSBC Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 1600

11.97%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 160

3Y Return

11.97%

UTI-Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 1,6840

11.71%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 1,684

3Y Return

11.71%

SBI Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 9,6430

11.71%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 9,643

3Y Return

11.71%

ICICI Pru Regular Savings Fund - Direct Growth

₹ 100

₹ 3,1880

11.66%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,188

3Y Return

11.66%

Franklin India Conservative Hybrid Fund - Dir Growth

₹ 500

₹ 2040

11.57%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 204

3Y Return

11.57%

DSP Regular Savings Fund - Direct Growth

₹ 100

₹ 1730

11.32%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 173

3Y Return

11.32%

Aditya Birla SL Regular Savings Fund-Dir Growth

₹ 100

₹ 1,3850

11.10%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 1,385

3Y Return

11.10%

Other Calculators

FAQs

How long should I stay invested in Conservative Hybrid Mutual Funds?

What kind of returns can I earn from Conservative Hybrid Funds?

Are conservative funds better than FDs?

Can I invest a lump sum in a Conservative Hybrid Fund?

How much share of a portfolio should be invested in Conservative Hybrid Funds?

What are the types of Conservative Hybrid Mutual Funds?

Open Free Demat Account

Conservative Hybrid Mutual Funds

Kickstart your SIP journey with just ₹100!

List of Conservative Hybrid Mutual Funds

Category

Sub Category

Rating

What are Conservative Hybrid Funds?

How do Conservative Hybrid Mutual Funds Work?

Characteristics of Conservative Hybrid Funds

Who Should Invest in Conservative Hybrid Mutual Funds?

What are the Advantages of Investing Conservative Hybrid Mutual Funds?

How to Invest in Conservative Hybrid Funds?

Factors to Consider While Investing in Conservative Mutual Funds

Tax Rules For Conservative Mutual Funds

Risks Involved When Investing in Conservative Hybrid Funds

Popular Conservative Hybrid Mutual Funds

Kotak Debt Hybrid Fund - Direct Growth ₹ 100 ₹ 3,1290 12.97% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 3,129 3Y Return 12.97%

Parag Parikh Conservative Hybrid Fund-Dir Growth ₹ 1000 ₹ 2,6650 12.33% Min SIP Investment Amt ₹ ₹ 1000 AUM (Cr.) ₹ 2,665 3Y Return 12.33%

HDFC Hybrid Debt Fund - Direct Growth ₹ 100 ₹ 3,4060 12.15% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 3,406 3Y Return 12.15%

HSBC Conservative Hybrid Fund - Direct Growth ₹ 500 ₹ 1600 11.97% Min SIP Investment Amt ₹ ₹ 500 AUM (Cr.) ₹ 160 3Y Return 11.97%

UTI-Conservative Hybrid Fund - Direct Growth ₹ 500 ₹ 1,6840 11.71% Min SIP Investment Amt ₹ ₹ 500 AUM (Cr.) ₹ 1,684 3Y Return 11.71%

SBI Conservative Hybrid Fund - Direct Growth ₹ 500 ₹ 9,6430 11.71% Min SIP Investment Amt ₹ ₹ 500 AUM (Cr.) ₹ 9,643 3Y Return 11.71%

ICICI Pru Regular Savings Fund - Direct Growth ₹ 100 ₹ 3,1880 11.66% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 3,188 3Y Return 11.66%

Franklin India Conservative Hybrid Fund - Dir Growth ₹ 500 ₹ 2040 11.57% Min SIP Investment Amt ₹ ₹ 500 AUM (Cr.) ₹ 204 3Y Return 11.57%

DSP Regular Savings Fund - Direct Growth ₹ 100 ₹ 1730 11.32% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 173 3Y Return 11.32%

Aditya Birla SL Regular Savings Fund-Dir Growth ₹ 100 ₹ 1,3850 11.10% Min SIP Investment Amt ₹ ₹ 100 AUM (Cr.) ₹ 1,385 3Y Return 11.10%

Other Calculators

FAQs

How long should I stay invested in Conservative Hybrid Mutual Funds?

What kind of returns can I earn from Conservative Hybrid Funds?

Are conservative funds better than FDs?

Can I invest a lump sum in a Conservative Hybrid Fund?

How much share of a portfolio should be invested in Conservative Hybrid Funds?

What are the types of Conservative Hybrid Mutual Funds?

Open Free Demat Account

Kotak Debt Hybrid Fund - Direct Growth

₹ 100

₹ 3,1290

12.97%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,129

3Y Return

12.97%

Parag Parikh Conservative Hybrid Fund-Dir Growth

₹ 1000

₹ 2,6650

12.33%

Min SIP Investment Amt

₹ ₹ 1000

AUM (Cr.)

₹ 2,665

3Y Return

12.33%

HDFC Hybrid Debt Fund - Direct Growth

₹ 100

₹ 3,4060

12.15%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,406

3Y Return

12.15%

HSBC Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 1600

11.97%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 160

3Y Return

11.97%

UTI-Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 1,6840

11.71%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 1,684

3Y Return

11.71%

SBI Conservative Hybrid Fund - Direct Growth

₹ 500

₹ 9,6430

11.71%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 9,643

3Y Return

11.71%

ICICI Pru Regular Savings Fund - Direct Growth

₹ 100

₹ 3,1880

11.66%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 3,188

3Y Return

11.66%

Franklin India Conservative Hybrid Fund - Dir Growth

₹ 500

₹ 2040

11.57%

Min SIP Investment Amt

₹ ₹ 500

AUM (Cr.)

₹ 204

3Y Return

11.57%

DSP Regular Savings Fund - Direct Growth

₹ 100

₹ 1730

11.32%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 173

3Y Return

11.32%

Aditya Birla SL Regular Savings Fund-Dir Growth

₹ 100

₹ 1,3850

11.10%

Min SIP Investment Amt

₹ ₹ 100

AUM (Cr.)

₹ 1,385

3Y Return

11.10%