1. What is a Conservative Hybrid Mutual Fund?
A conservative hybrid fund is a type of scheme that involves the greater portion of its funds in debt securities such as bonds, and the balance in shares. This type of scheme aims to avoid risk to some extent but still has some growth potential.
2. Are conservative hybrid funds suitable for new investors?
These mutual funds are apt for new investors since most of their investments are made in debts, which is less volatile than stocks. Even in this, since there are some equity investments, there could be some variations in the returns.
3. For how long should I invest money in a conservative hybrid fund?
It would be ideal if the investors could stay in for at least two to three years. This would allow the debt component to give stability while the equity component generates incremental gains in a way that is in no way influenced by market fluctuations.
4. Do Conservative Hybrid Funds provide regular income?
Conservative hybrid mutual funds generate no assured income. Though the fund may distribute dividends, the same is not guaranteed. For generating a steady income periodically, the investors may consider the systematic withdrawal mechanism other than the dividends.
5. Why are Conservative Hybrid Funds so popular in 2025?
In the year 2025, market volatility coupled with high equity prices had made investors wary. Conservative hybrid funds have become popular investment options since they can blend steady growth with conservative investing.