Invest in These Top Conservative Hybrid Mutual Funds in February 2025

Conservative hybrid funds are mutual funds that invest in stocks as well as in bonds. It helps to strike a balance between risk and return, offering diversification to the portfolio of an investor.

The majority of mutual fund professionals believe that 2025 is a great year for hybrid mutual funds including conservative hybrid mutual funds as well. Due to the uncertainty in the global economy and the continuously rising Indian stock market, experts are advising investors to be cautious. In this situation, experts suggest hybrid mutual funds which invest in both stocks and bonds could be a good option, especially for new and less experienced investors.

These funds mainly invest in debt 75-90% and a small portion 10-25% in stocks, as per SEBI rules. They are a good option for investors who prefer the safety of debt investments but want to add a small amount of equity for extra returns. Conservative hybrid mutual funds are a simple way to start investing in hybrid funds.

Conservative hybrid plans are like the erstwhile Monthly Income Plans (MIPs), which were extremely popular once. MIPs put a small amount of money in stocks, but their big selling point was offering regular income in the form of dividends. But when the market crashed, these dividends dried up, and MIPs lost popularity.

Top Conservative Hybrid Funds to invest in February 2025

• Canara Robeco Conservative Hybrid Fund
• ICICI Prudential Regular Savings Fund
• Kotak Debt Hybrid Fund
• SBI Conservative Hybrid Fund

Canara Robeco Conservative Hybrid Fund has been in the top fourth quartile in the last month, before that the scheme had been in the top third quartile.

If you need a regular income, a Systematic Withdrawal Plan (SWP) is a good option. But be careful with how much you withdraw if you want to keep your original investment safe. To protect your capital, always withdraw less than what you earn.