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Mutual Funds

What is a Conservative Hybrid Fund?| Who should Ideally invest in them?

Written by - Akshatha Sajumon

January 21, 2019 2 minutes

Description :


Hi, guys, this is Ashish from Fisdom let’s now understand what are Conservative Hybrid Funds.

They are mutual fund schemes which are open-ended in nature and does predominantly in the debt schemes.
As per SEBI guidelines 10 to 25 % of their portfolio are into equities and remaining 75% to 90% should go towards debt instruments.
They are also called as monthly income plans

So why should you invest into conservative hybrid funds?
Predominantly debt exposure towards your portfolio provides that safety towards your entire investments however a little exposure to 25% into equities gives you that little extra and help you to creates a corpus what is more balanced in nature.

So who should invest into conservative hybrid fund?
These schemes are better for those investors who do not want to expose their entire corpus towards equity volatility however they want to have a decent 10 to 25% of their portfolio towards equity allocation.

These investors normally have more than 3 years of time horizon towards conservative hybrid funds.

So how do you invest into conservative hybrid funds?
It simple open your Fisdom app go to do it your self-section click on it you’ll find 3 options.
Equity, Debt, and Hybrid.
Click on Hybrid you’ll find 3 more options there.
just click on conservative one and there you go. There are schemes sorted just select one of your choice and you have done your investments.

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