Best conservative hybrid mutual funds to invest in May 2024
Mutual fund advisors believe that 2024 is going to be the year of hybrid funds. Because of the uncertainties regarding the global economy and ever rising Indian stock market, advisors have been advising investors to move cautiously. In such a scenario they believe that investing in hybrid mutual funds — schemes that invest in equity and debt — may serve investors, especially new and inexperienced investors, better.
Conservative hybrid mutual funds are the entry to the world of hybrid funds. These schemes invest mostly in debt and a small percent in equity. As per the Sebi norms, conservative hybrid schemes must invest 75-90% in debt instruments and 10-25% in stocks. These schemes are ideal for investors looking to invest a small part of their corpus in equity to earn some extra returns.
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
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Conservative hybrid schemes, as the name suggests, are meant for investors with a conservative risk profile.
These schemes are similar to erstwhile monthly income plans or MIPs. MIPs were extremely popular at one point. They used to invest a small part of their portfolio in stocks. But their USP, as the name suggests, was regular income in the form of dividends. However, regular dividends stopped when the market got into a bad phase. That was the end of MIPs. The lesson: do not bank on hybrid funds to secure a regular income.
If you are looking for regular income, it is always better to opt for a systematic withdrawal plan
