If you are looking to save for your sister’s wedding, your mom’s inevitable surgery or just for a rainy day, setting up an SIP in a Mutual Fund scheme remains the easiest way to do so. Of course, there is always the risk of suffering losses, but not all Mutual Funds invest in risky securities. These 10 Conservative Mutual Funds offer decent returns, mostly better than Fixed Deposits, by investing in a combination of debt instruments and a handful of relatively stable stocks. This list has been curated based solely on popularity, as measured by the total Assets Under Management (AUM) these funds manage.
Without further ado, let’s start.
SBI Conservative Hybrid Fund
AUM- Rs. 9,799 crore
One of the most recognized, and oldest conservative hybrid funds in the market, this one has cemented its position in the market for almost 24 years despite increasing competition. It has met expectations, despite concerns about its investments in debt instruments that have a lower rating, corresponding to higher risk. The Fund has given a 8.6% CAGR return since inception, pretty decent considering the gradual decrease in FD rates in the last decade.
HDFC Hybrid Debt Fund
AUM- Rs.3,408 crore
The fund has managed to maintain its consistent returns despite the departure of the fund’s longtime fund manager who had built a reputation for exceptional returns. As one of the oldest funds in the market, its returns are considered a benchmark in their own right, even though the fund has seen its share of underperformance over the years. Nevertheless, it remains a trusted fund with a largely consistent 9.84% p.a return since 2004.
ICICI Prudential Regular Savings Fund
AUM- Rs.3,237 crore
Advisors have recommended this fund on its ability to give volatility-beating returns for more than ten years, and the fund hasn’t betrayed them. As one of the oldest funds in the market, advisors have used the funds consistent, benchmark-beating returns to encourage investors to take on higher risks gradually, and they continue to do so. To date, the fund has offered a 10.77% pa return since inception, cementing the trust of millions of investors to invest in the stock market.
Also Read: 10 Most popular Mutual Fund schemes for long-term investors
Kotak Debt Hybrid Fund
AUM- Rs.3,130 crore
More than a decade old, the Fund’s managers have consistently maintained the funds strategy that has helped it become what it is today, despite two highly prominent managers departing from the AMC. The Fund has managed to keep up the returns consistently despite having an extremely low expense ratio. The fund currently has more than 20% of its investments in equities while the rest is in debt investments and other instruments. The fund remains a popular investment medium for SIPs by conservative investors, considering the 10.84% per annum returns it has given consistently over the years.
Parag Parikh Conservative Hybrid Fund
AUM- Rs.2,881 crore
This one owes its popularity to its fund house’s reputation. The fund has become quite popular due to its investments in dividend paying largecaps with strategic investments in proven REITs and debt instruments that give it benchmark beating returns. Even though the fund invests less than 10% in equities, the fund has managed to offer more than 10% CAGR returns. The fact that the fund is managed by the same team as the AMCs extremely popular Flexicap fund has helped this one reach the top 10 is no surprise.
UTI Conservative Hybrid Fund
AUM- Rs. 1,797 crore
Investors trusted this fund for its name, and this goodwill has given them consistent returns in more than two decades. As the oldest fund in the category, this one has had its share of underperformance, but the fund has managed to turn the tides, despite the retirement of two of the most seasoned fund managers in the company. Currently, the fund allocates about 23% of its investments in equities with the rest in low-risk government backed debt.
Aditya Birla Sun Life Regular Savings Fund
AUM- Rs.1,524 crore
The fund has benefited from the consistent investment strategy emphasised by its renowned team. Despite some of the managers exiting the fund, they were replaced by seasoned professionals who continued to maintain the funds return momentum, which remains at 10.61% pa to date. The fund currently invests about 20% in equities while the rest is invested mostly in government and corporate debt.
Canara Robeco Conservative Hybrid Fund
AUM- Rs.950 crore
Despite the Funds higher expense ratio and its management churn, this one has given consistent returns despite its unusual tilt towards growth oriented stocks. The fund has its share of underperformance as against the benchmark over the years, yet has managed to offer a 9.76% pa return since inception.
Nippon India Conservative Hybrid Fund
AUM- Rs.898 crore
The Fund has seen its shares of controversies, primarily by its previous owners misuse of some bonds between 2016 and 2019. Despite that, the fund has been performing quite well over the years, beating the benchmark CRISIL Hybrid 85+15 Conservative Index consistently over a 5 year period. The fund invests about 12% of its investments in equities while the rest are in debt instruments.
Baroda BNP Paribas Conservative Hybrid Fund
AUM- Rs.825 crore
One of the oldest funds in the market, this one has seen trailing returns over the years, but has managed to maintain its return momentum nevertheless. Over two decades old, this fund hasn’t been on advisors radar for quite some time, yet has been popular enough primarily due to its high AUM.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
