Janvi | Mar 21, 2025 |
Best Consecutive Hybrid Mutual Fund to Invest In March 2025
Numerous mutual fund advisors consider that the year 2025 is going to be the year of hybrid funds. Due to the instabilities regarding the global economy and the rise of the Indian stock market, consultants have been recommending investors proceed carefully. Under these circumstances, they conclude that investing in hybrid mutual fund schemes that invest in equity and debt could work for investors, notably new and inexperienced investors, better.
Conservative hybrid mutual funds are the doorway to opportunities for hybrid funds. These schemes invest mainly in debt and a small percent in equity. According to the SEBI norm, conservative hybrid schemes idealy should invest 70–90% in debt instruments and 10–25% in stocks. These schemes are top-notch for the investors who are seeking to invest a small part of their corpus in equity in order to get some extra results.
As indicated by the name, the conservative hybrid schemes are meant for investors who want to invest with a conservative risk profile.
These schemes are similar to the previous monthly income, or MIPs. At certain times, MIPs are very popular. They used to put money or invest a small part of their portfolio in stocks. But just like the name, their USP was regular in the form of dividends. However, whenever the market is in a bad phase, their regular dividends stop. That is where the MIPs conclude. Hence, do not opt for hybrid funds to secure a regular income.
Should you be seeking a steady income, then it is better to go with a systematic withdrawal plan (SWP). But in SWP, you have to be careful while withdrawing your money if you don’t want to touch your capital. In case you want to keep your capital preserved, then you should always withdraw less than the amount you make.
If you’re looking for a ready-made scheme to take a small but meaningful exposure to equity, here are our recommended conservative hybrid schemes. However, always keep in mind—especially if you’re new to stock investing—that stocks come with risks. They do not provide predictable or guaranteed returns every year and may even incur losses during downturns. In short, even if your equity allocation is limited to a maximum of 25% of your investment, you are still taking on risk.
Canara Robeco Conservative Hybrid Fund has been in the fourth quartile for the past two months, after previously being in the third quartile, and the short-term underperformance is not a major concern.
Consecutive Hybrid Mutual Funds are generally low-risk, but it’s crucial to ensure that the fund manager strategically balances equity and debt components to maximize returns while minimizing unnecessary risks.
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