What Are Conservative Hybrid Mutual Funds?
A conservative hybrid fund is for investors seeking safer investments and secure returns. This is an open-ended hybrid mutual fund, a wide range of fixed income investment options, that invests 75-90% of its total assets in debt securities and remaining in stocks. View More
Who Should Invest in Conservative Hybrid Mutual Funds?
As the name implies, conservative investors who look for safe investment and moderate Conservative Hybrid Fund returns can consider this option. These yield better returns as compared to FDs and pure debt funds. View More
Features of Conservative Hybrid Mutual Funds
- Investors can seek investment exposure in both debt and equity funds, depending on their risk tolerance which can be further classified into aggressive, moderate, or conservative risks
- Conservative hybrid funds offer higher yields than FDs.
Taxation
Taxation of the best Conservative Hybrid funds is almost the same as taxation of other debt funds. Short-term capital gains (STCG) are taxed at the individual income tax rate. On the other hand, long-term capital gains (LTCG) are taxed at 20%, which has the advantage of indexing. View More
What Are The Different Types Of Hybrid Schemes?
The fact that the top conservative hybrid funds come with individual asset allocation between debt and equity means that they can be easily categorized into the following types: View More
Risk Involved With Conservative Hybrid Funds
Conservative hybrid funds carry certain risks. The equity portion is subject to market risk and the Debt certificates, face default risk (credit risk) and interest rate risk. Default risk, or credit risk, is the risk at which a company defaults on payments and causes losses to investors. View More
Advantage of Conservative Hybrid Mutual Funds
- Such funds provide stable returns to investors, primarily by investing in fixed income. However, given the low risk-reward trade-offs, investors need to remain rational in their expectations of returns.
Frequently Asked Questions
Are Conservative Hybrid Funds Safe To Invest in?
The top conservative hybrid funds are ideal for beginner investors who’re not comfortable or confident in handling their own asset allocation.
How to invest in conservative hybrid funds using the 5paisa app?
● Open the 5paisa app.
● Login to your profile.
● If you don’t have a trading account, create one.
● Navigate to the ‘My Watchlist’ option.
● Tap on the ‘Search Glass’ option.
● Type ‘conservative hybrid funds’ on the search bar.
● Start investing!
How many shares of a Portfolio should be invested in Conservative Hybrid Funds?
According to the SEBI guidelines, conservative hybrid funds invest around 10-25% in stocks and 75-90% in debt instruments.