Conservative Hybrid Funds to Invest in 2021
Conservative Hybrid Funds are open-ended hybrid mutual funds. These funds predominantly invest in debt and fixed income securities. Moreover, the schemes also follow the conservative investment strategy in both returns and risk limits.
Here are the few best and most safe conservative schemes with a little exposure to equity for better returns. A few types of hybrid mutual funds offered nearly 8.26% returns. These schemes invest in debt instruments and a small part of their corpus in stocks. Further, small equity exposure helps these types of schemes to generate marginally higher returns than pure debt schemes.
Moreover, these schemes invest up nearly 75-90% of the corpus in debt instruments and 10-25% in equity or stocks. However, this remains the major factor why these funds called conservative funds. Further, most of the financial experts recommended these schemes to the conservative investors who will ready to take a small exposure to stocks.
The conservative hybrid plans are practically similar to monthly income plans or MIPs that used to contribute a little piece of the corpus in stocks. The issue with MIPs was that individual plans used to choose the value openness themselves. Notwithstanding, after the re-categorization practice by SEBI, the speculation standards for moderate mixture plans are unmistakably characterized.
Best Conservative Hybrid Funds for Investors:
ICICI Prudential regular saving fund
Canara Robeco Conservative Hybrid
Kotak Debt hybrid
BNO Paribas conservative hybrid