Hybrid funds are structures for both debt and equity investments. The moderate hybrid schemes are one of six new sub-categories of hybrid schemes.
Conservative hybrid schemes are required to invest 10 to 25% of their total assets in equity and equity-related instruments.
The majority of the corpus (75% to 90%) will be invested in debt instruments. The small amount of equity exposure lets these strategies gain fewer extra
returns than mere debt funds. This also indicates that these plans are more risky than mere debt funds. Conservative hybrid schemes are intended for
investors who want to have a small equity exposure to earn extra returns but have no risk appetite for investing in aggressive hybrid or pure equity funds.
Conservative Hybrid Fund :
These mutual funds invest in stocks as well as debt / bonds. Focusing on bonds, however, is higher with 75-90 percent of bond investments and stock rest.