Conservative hybrid funds typically allocate a large portion of their portfolio to debt (75–90%) and a smaller portion to equity (10–25%), giving them lower volatility than equity-heavy funds.
These funds are suitable for long-term goals where stability and moderate growth are more important than aggressive returns.
In a rising interest rate or uncertain equity market environment, conservative hybrid funds can act as a buffer, offering more predictable returns than pure equity funds.
Investors now look for stability and returns when investing their hard-earned money. Putting money into conservative hybrid mutual funds can be profitable for investors. These funds offer high growth potential to investors with a good equity allocation. Let’s take a look at the best conservative hybrid mutual funds to choose for a low-risk investment.
Investors who want to invest safely can choose a wide range of conservative hybrid mutual funds, such as:
SBI Conservative Hybrid Fund is the best Conservative Hybrid Fund in India with an expense ratio of 1.54%. This hybrid fund provides a high level of stability and helps to invest in debt. The investors can also invest in money market instruments with a small equity allocation. Investors who want to enjoy maximum returns with minimal risk can invest in the SBI Conservative Hybrid Fund.
Also Read: What are Mutual Funds and How to Invest?
The next on the list is Aditya Birla Sun Life Regular Savings Fund. This scheme provides debt with a small equity portion. This is the reason why investors looking for stable income can choose this fund. This hybrid fund from Aditya Birla is one of the profitable options for every kind of investor.
HDFC offers one of the best Hybrid Debt-Equity Funds with around 74.7% of its investment in debt. This scheme provides a good balance between debt and equity. The fund has generated a huge return every year by keeping a low risk. HDFC Hybrid Debt Fund has received a top ranking for returns.
UTI Conservative Hybrid Fund is one of the reliable low-risk hybrid solutions. This fund has a strong track record of delivering high returns every year.
Kotak Debt Hybrid Fund involves a moderate level of risk. This scheme is one of the best Safe Hybrid Mutual Funds with a small equity allocation. The fund also includes a debt-heavy core feature that helps distribute risk among investors.
Also Read: Best SIP Mutual Funds in 2025
Investors looking to preserve their capital while achieving substantial returns may consider low-risk hybrid funds. These hybrid mutual funds are designed to minimize volatility and generate moderate income. By opting for hybrid funds, investors can look for good returns with reduced risk.
1. Do these schemes help to save taxes?
Hybrid funds with less than 65% of equity do not receive the long-term capital gains.
2. What kind of returns do investors receive in hybrid mutual funds?
The investors will get moderate returns by investing money in hybrid mutual funds. These returns are higher than those of debt funds and lower than those of aggressive hybrid funds.
3. Do the investors get lower risk than equity funds?
Yes, a large part of hybrid mutual funds is debt. They are not sensitive to stock market volatility.
4. How long should the investors hold the hybrid mutual funds?
Investors must hold hybrid mutual funds to achieve high returns. They can earn income from their equity portion during market fluctuations.
5. Who should invest in hybrid mutual funds?
Hybrid mutual funds are ideal for investors who want balanced growth with lower risk. They suit first-time investors, conservative investors, and anyone looking for a mix of equity growth and stable debt returns.