How Do Conservative Hybrid Mutual Funds Work?

Conservative Hybrid Mutual Funds pool money from multiple investors to create a balanced portfolio that primarily invests in debt instruments (75-90%), with a small allocation to equity (usually 10-25%). Fund managers carefully select debt securities like government bonds, corporate bonds, and money market instruments to ensure stability, while equity exposure adds growth potential.

This balanced strategy reduces volatility while offering moderate returns, making it an ideal option for conservative investors. By leveraging professional management, these funds aim to preserve capital while generating steady income, catering to individuals seeking lower-risk investment options.