Top Options to Consider While Investing in Conservative Hybrid Mutual Funds in February 2025
What are Conservative Hybrid Mutual Funds?
Conservative hybrid mutual funds are the type of mutual fund that invests both in debt and equity. However, such mutual funds invest a large portion in debt compared to equity. According to the Securities and Exchange Board of India (SEBI), conservative hybrid funds must invest 75-90% in debt and 10-12% in stocks. As the name suggests, these schemes are suitable for investors who have conservative risk profiles. Investors looking for a steady income with a low-risk appetite can consider investing in conservative hybrid mutual Funds. Conservative hybrid schemes aim to provide regular income as well as wealth creation for their investors.
These schemes are almost the same as the former Monthly Income Plans, or MIPs, that was introduced to offer regular income to their investors in the form of dividends. They used to invest a small portion in equity with the objective of providing regular income to their investors. But when the market went down, the regular dividends stopped, which led to the downfall of MIPs. Therefore, investors should not solely depend on hybrid funds for guaranteed returns, as these returns are influenced by market conditions.
If you are looking for a scheme that invests a small percent in equity, then here are some recommended conservative hybrid funds you can opt for.
Top recommendations to invest in conservative hybrid funds in February 2025
- ICICI Prudential Regular Savings Fund
- Canara Robeco Conservative Hybrid Fund
- Kotak Debt Hybrid Fund
- SBI Conservative Hybrid Fund
If you are investing in stocks for the first time, it should be noted that stocks carry risk with them even if it is 25% of your investment. Always consult an expert or financial advisor before investing in such a scheme.
