5 Best Conservative Hybrid Mutual Fund SIPs To Consider In 2021 For Risk Averse Investors

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oi-Sneha Kulkarni

| Updated: Thursday, September 23, 2021, 16:47 [IST]

A conservative hybrid fund, according to SEBI guidelines, should invest 10 to 25% of total assets in equity and equity-related products, and 75 to 90% of total assets in debt instruments. A conservative hybrid fund is an open-ended hybrid fund that primarily invests in debt instruments while allocating a portion of its assets to equity-related securities. Fund managers of conservative hybrid funds must rebalance their portfolios on a regular basis in order to maintain the required debt-to-equity ratio.

This fund is also a good choice for people who wish to invest in stocks but don’t want to be subjected to market volatility. Adding such funds to one’s portfolio is also one of the ideal methods for a rookie investor to get a taste of the equity market. The conservative hybrid fund offers a balance of stability and performance. As a result, through a single fund, an investor can gain from both debt and equity. Here are some of the best-rated conservative hybrid mutual funds for risk-averse investors.

Canara Robeco Conservative Hybrid Fund

Canara Robeco Conservative Hybrid Fund Direct-Growth manages assets of Rs. 817 crores (AUM). The fund currently has a 22.96 percent equity allocation and a 70.17 percent debt allocation.

Canara Robeco Conservative Hybrid Fund Direct-Growth returns have been 18.07 percent during the last year. It has returned an average of 10.63 percent per year since its inception.

National Bank For Agriculture & Rural Development, GOI, Housing Development Finance Corpn. Ltd., Tamilnadu State, and Rural Electrification Corpn. Ltd. are the fund’s top five holdings.

Canara Robeco Conservative Hybrid Fund’s NAV on September 21, 2021, is 82.39. The fund aims to create income by primarily investing in debt securities, with minor exposures to equity and money market instruments of varying maturities and risk profiles. The fund has a 5-star rating from Value Research.

ICICI Prudential Regular Savings Fund

The ICICI Prudential Regular Savings Fund Direct-Growth manages assets of 3,339 crores (AUM). The fund currently has a 19.42 percent equity allocation and a 55.95 percent debt allocation.

The returns on the ICICI Prudential Regular Savings Fund Direct-Growth Fund during the last year have been 16.05 percent.

The equity element of the fund is predominantly invested in the financial, energy, fast-moving consumer goods, communication, and engineering industries. It has returned an average of 11.25 percent per year since its inception. GOI, HDFC Bank Ltd., Tata Motor Finance Ltd., Gujarat State, and Uttar Pradesh State are the fund’s top five holdings.

The scheme invests in money market and debt securities in order to create long-term financial appreciation. For September 21, 2021, the NAV of ICICI Prudential Regular Savings Fund is 58.4. The fund has 5-star rating from Value Research.

SBI Debt Hybrid Fund Direct

The SBI Debt Hybrid Fund Direct-Growth manages assets of 3,890 crores (AUM). The fund now has a 23.98 percent equity allocation and a 66.79 percent debt allocation.

The 1-year returns for SBI Debt Hybrid Fund Direct-Growth are 21.63 percent. It has returned an average of 10.18 percent every year since its inception. Andhra Pradesh State, GOI, Tata Steel Ltd., Uttar Pradesh State, and Tamilnadu State are the fund’s top five holdings. The programme aims to give investors the option of investing primarily in debt and money market securities, with a secondary focus on equities and equity-related instruments. SBI Debt Hybrid Fund’s NAV on September 21, 2021 is 55.52.

HDFC Hybrid Debt Fund

The HDFC Hybrid Debt Fund-Growth manages assets of Rs 2,605 crores (AUM). The fund currently has a 23.52 percent equity allocation and a 66.71 percent debt allocation.

HDFC Hybrid Debt Fund’s 1-year growth returns are 22.28 percent. It has had an average yearly return of 10.48 percent since its inception. Tata Housing Devp. Co. Ltd, Vedanta Ltd., National Bank For Agriculture & Rural Development, Pipeline Infrastructure (India) Pvt. Ltd., and Reliance Ports and Terminals Ltd are the fund’s top five holdings. The scheme invests largely in debt securities, money market instruments, and a moderate amount of stocks in order to create income and capital appreciation.

Kotak Debt Hybrid Fund

The HDFC Hybrid Debt Fund-Growth manages assets of Rs 2,605 crores (AUM). The fund currently has a 23.52 percent equity allocation and a 66.71 percent debt allocation.

HDFC Hybrid Debt Fund’s 1-year growth returns are 22.28 percent. It has had an average yearly return of 10.48 percent since its inception. Tata Housing Devp. Co. Ltd, Vedanta Ltd., National Bank For Agriculture & Rural Development, Pipeline Infrastructure (India) Pvt. Ltd., and Reliance Ports and Terminals Ltd are the fund’s top five holdings. The scheme invests largely in debt securities, money market instruments, and a moderate amount of stocks in order to create income and capital appreciation. The NAV of Kotak Debt Hybrid Fund for Sep 21, 2021, is 46.47.

5 Best Conservative Hybrid Mutual Fund To Consider For Low Risk

Fund name 1-year Return Rating
Canara Robeco Conservative Hybrid Fund 18.38%
  • CRISIL: 5-Star
  • Value Research: 5-Star
  • Morningstar: 5-Star
ICICI Prudential Regular Savings Fund 15.24%
  • CRISIL: 3-Star
  • Value Research: 5-Star
  • Morningstar: 5-Star
SBI Debt Hybrid Fund Direct 22.21%
  • CRISIL: 3-Star
  • Value Research: 4-Star
  • Morningstar: 5-Star
HDFC Hybrid Debt Fund 22.81% CRISIL: 3-Star

Value Research: 3-Star

Morningstar: 4-Star

Kotak Debt Hybrid Fund 23.01% CRISIL: 4-Star

Value Research: 5-Star

Morningstar: 5-Star

Who should consider?

Before investing in conservative hybrid funds, make sure you know what your financial goals are, and only invest if the scheme has the potential to help you accomplish them. The conservative hybrid fund invests in the stock market. They invest in equities, even if it is only a little component of their portfolio. And, as we all know, profits on stock investments are never assured. As a result, keep track of your fund’s performance at regular intervals and rebalance your portfolio as appropriate. Check the past performance of any plan before investing. Check the fund’s expenditure ratio and whether it is operated by a respected asset management company.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advice to buy or sell stocks, gold, currency, or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles.

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