Conservative mutual funds are a form of balanced funds, and when you invest in them, you will mainly be invested in debt instruments. This is because 75% - 90% of the portfolio is invested in debt securities, and the other 10% - 25% of the fund is invested in equities.
This fund would suit an investor with a low-risk appetite and aspires to avoid market fluctuations. It's also for investors who want to profit from equities but do not hold the fortune of investing in them.
You can look at a detailed list of the best conservative mutual funds 2025 below.
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| Fund Name | Category | Risk | NAV | Expense Ratio | 1Y Returns | 3Y Returns | 5Y Returns | Rating | Fund Size (in Cr) | Exit Load |
|---|---|---|---|---|---|---|---|---|---|---|
SBI Magnum Children's Benefit Fund | Hybrid | Moderately High | 119.57 | 0.85 | 3.4% | 12.7% | 13.8% | 5 | ₹127 | Exit Load of 3% if redeemed within an year, 2% if redeemed within 2 years and 1% if redeemed within 3 years
See more |
ICICI Prudential Income Plus Arbitrage Active FoF Fund | Hybrid | Moderate | NA | - | 5.2% | 12.4% | 11.7% | 5 | ₹1,631 | - |
Parag Parikh Conservative Hybrid Fund | Hybrid | Moderately High | 15.40 | 0.34 | 6.4% | 12.1% | NA | 5 | ₹2,954 | For units in excess of 10% of the investment,1% will be charged for redemption within 365 days See more |
ICICI Prudential Regular Savings Fund | Hybrid | Moderately High | NA | - | 6.5% | 11.2% | 10.9% | 5 | ₹3,235 | - |
Nippon India Conservative Hybrid Fund | Hybrid | High | 64.86 | 1.1 | 7.9% | 10.0% | 9.8% | 5 | ₹893 | For units in excess of 10% of the investment, 1% will be charged for redemption within 12 months. See more |
Kotak Debt Hybrid Fund | Hybrid | Moderately High | NA | - | 2.8% | 11.7% | 12.2% | 4 | ₹3,065 | - |
HDFC Hybrid Debt Fund | Hybrid | Moderately High | 87.27 | 1.17 | 3.0% | 11.2% | 11.9% | 4 | ₹3,342 | Exit load for units in excess of 15% of the investment, 1% will be charged for redemption within 1 year See more |
DSP Regular Savings Fund | Hybrid | Moderate | NA | - | 5.2% | 11.0% | 10.0% | 4 | ₹177 | - |
SBI Conservative Hybrid Fund | Hybrid | High | NA | - | 4.5% | 10.7% | 11.8% | 4 | ₹9,786 | - |
UTI Conservative Hybrid Fund | Hybrid | Moderately High | NA | - | 3.3% | 10.6% | 11.4% | 4 | ₹1,686 | - |
Aditya Birla Sun Life Regular Savings Fund | Hybrid | Moderately High | NA | - | 6.6% | 10.4% | 11.9% | 4 | ₹1,530 | - |
Aditya Birla Sun Life Conservative Hybrid Active FoF Fund | Hybrid | High | NA | - | 3.3% | 12.5% | 11.8% | 3 | ₹15 | - |
ICICI Prudential Retirement Fund | Hybrid | Moderately High | 19.02 | 0.94 | 5.8% | 12.1% | 10.5% | 3 | ₹82 | - |
Franklin India Conservative Hybrid Fund | Hybrid | Moderately High | NA | - | 4.8% | 10.5% | 9.8% | 3 | ₹202 | - |
HDFC Retirement Savings Fund | Hybrid | Moderately High | 24.39 | 1.06 | 3.2% | 10.3% | 9.9% | 3 | ₹159 | - |
| View All | ||||||||||
The investors that can start investing in this fund:
As the name says, it is a good match for conservative investors who are not yet ready to take big risks with mutual fund investments.
These funds come as a safe fund since a major part of the portfolio is invested in debt and debt-related stocks, which are least affected by market movements. Although the returns are not guaranteed due to investments in equities, the investments in debt funds are in a much higher percentage.
Also, investors who seek to earn more than bank deposits can choose this fund to see better returns.
A new investor can learn the art of mutual fund investments through conservative mutual funds. They are a form of hybrid funds and, therefore, offer balanced market volatility and returns.
Investors close to retirement will also tend to become conservative in nature. So, rather than choosing bank deposits and other schemes, they can invest in this fund, which comparatively has very low risks but higher returns.
These funds can work well in the short and mid-term, which means investors who are looking for a short term can benefit from this fund.
The main factors to consider while finding the top conservative mutual funds and beginning to invest in these funds are:
Before investing in these funds, you should understand what kind of purposes these funds serve. They are best suited to short-term and medium-term objectives.
Even while these funds include a significant ratio of debt in their portfolios, they are not completely risk-free. Market risk exists in any portfolio that includes even a small level of equity exposure.
Here are some benefits that investor can enjoy by investing in conservative mutual funds:
Higher returns than bank FDs: Conservative hybrid funds are known to provide higher capital appreciation than bank fixed deposits. One of the primary reasons for this is its investment in stocks.
Less risky than other hybrid funds: The portfolio of this type of mutual fund scheme mainly comprises high-quality debt instruments, making these a less risky option compared to other hybrid funds. The main focus of conservative funds is capital preservation.
Diversification: The portfolio of conservative funds is well-diversified as they allocate their investment corpus to both equity and debt instruments. While a significant investment in debt instruments safeguards the principal amount, equity exposure provides capital appreciation.
Mode of investment: There are two routes available for investing in the best conservative mutual funds – Systematic Investment Plan (SIP) and lump sum. SIP allows one to invest in a scheme via fixed instalments at regular intervals. Whereas, by opting for the lump sum route, investors can allocate their entire savings to a scheme at once. Please keep in mind that the minimum investment amount in the case of a lump sum is Rs.1,000. For SIP, one must invest at least Rs.500 at regular intervals in most cases.
While finding the best conservative funds for your portfolio, remember to consider these risks-
Though conservative funds are comparatively a safer option, the market risk cannot be eliminated completely. Several market fluctuations can impact their performance over time.
Inflation risk is associated with the purchasing power of an individual. If the inflation rate keeps rising, staying invested in such funds may or may not suit an investor.
Conservative Funds are those mutual funds that are known to invest around 75% to 90% of their total assets in debt instruments. The rest 10% to 25% is invested in equity.
Conservative funds have 75% of their portfolio invested in safe investment tools, i.e. FD-like options, which makes them highly safe with the least risks.
Investors who are risk-averse or prefer an alternative higher earning source to bank deposits can invest in these funds.
There can be exit loads charged by the fund house, which you will have to verify to find more. There are no entry fees on investments in mutual funds stated according to the rule of SEBI.
The historical returns of this fund are known to be more than 8% per annum in the last five years. And they have been known to perform positively in the last ten years, too. This ensures you can earn positive returns on this investment with the right strategy.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The SBI Magnum Children's Benefit Fund has given 12.65% annualized returns in the past three years and 13.85% in the last 5 years. The SBI Magnum Children's Benefit Fund comes under the Hybrid category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Magnum Children's Benefit Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹127Cr |
| 1Y Returns | 3.4% |
Fund Performance: The ICICI Prudential Income Plus Arbitrage Active FoF Fund has given 12.42% annualized returns in the past three years and 11.7% in the last 5 years. The ICICI Prudential Income Plus Arbitrage Active FoF Fund comes under the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Income Plus Arbitrage Active FoF Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,631Cr |
| 1Y Returns | 5.2% |
Fund Performance: The Parag Parikh Conservative Hybrid Fund comes under the Hybrid category of PPFAS Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Parag Parikh Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹2,954Cr |
| 1Y Returns | 6.4% |
Fund Performance: The ICICI Prudential Regular Savings Fund has given 11.22% annualized returns in the past three years and 10.87% in the last 5 years. The ICICI Prudential Regular Savings Fund comes under the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Regular Savings Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹3,235Cr |
| 1Y Returns | 6.5% |
Fund Performance: The Nippon India Conservative Hybrid Fund has given 9.96% annualized returns in the past three years and 9.81% in the last 5 years. The Nippon India Conservative Hybrid Fund comes under the Hybrid category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹893Cr |
| 1Y Returns | 7.9% |
Fund Performance: The Kotak Debt Hybrid Fund has given 11.7% annualized returns in the past three years and 12.24% in the last 5 years. The Kotak Debt Hybrid Fund comes under the Hybrid category of Kotak Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Kotak Debt Hybrid Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹3,065Cr |
| 1Y Returns | 2.8% |
Fund Performance: The HDFC Hybrid Debt Fund has given 11.15% annualized returns in the past three years and 11.88% in the last 5 years. The HDFC Hybrid Debt Fund comes under the Hybrid category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Hybrid Debt Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹3,342Cr |
| 1Y Returns | 3.0% |
Fund Performance: The DSP Regular Savings Fund has given 11% annualized returns in the past three years and 10.04% in the last 5 years. The DSP Regular Savings Fund comes under the Hybrid category of DSP Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in DSP Regular Savings Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹177Cr |
| 1Y Returns | 5.2% |
Fund Performance: The SBI Conservative Hybrid Fund has given 10.68% annualized returns in the past three years and 11.82% in the last 5 years. The SBI Conservative Hybrid Fund comes under the Hybrid category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹9,786Cr |
| 1Y Returns | 4.5% |
Fund Performance: The UTI Conservative Hybrid Fund has given 10.57% annualized returns in the past three years and 11.38% in the last 5 years. The UTI Conservative Hybrid Fund comes under the Hybrid category of UTI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in UTI Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹1,686Cr |
| 1Y Returns | 3.3% |
Fund Performance: The Aditya Birla Sun Life Regular Savings Fund has given 10.37% annualized returns in the past three years and 11.94% in the last 5 years. The Aditya Birla Sun Life Regular Savings Fund comes under the Hybrid category of Aditya Birla Sun Life Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Regular Savings Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹1,530Cr |
| 1Y Returns | 6.6% |
Fund Performance: The Aditya Birla Sun Life Conservative Hybrid Active FoF Fund has given 12.53% annualized returns in the past three years and 11.81% in the last 5 years. The Aditya Birla Sun Life Conservative Hybrid Active FoF Fund comes under the Hybrid category of Aditya Birla Sun Life Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Conservative Hybrid Active FoF Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹15Cr |
| 1Y Returns | 3.3% |
Fund Performance: The ICICI Prudential Retirement Fund has given 12.09% annualized returns in the past three years and 10.48% in the last 5 years. The ICICI Prudential Retirement Fund comes under the Hybrid category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Retirement Fund via lump sum is ₹5,000 and via SIP is ₹100.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹82Cr |
| 1Y Returns | 5.8% |
Fund Performance: The Franklin India Conservative Hybrid Fund has given 10.53% annualized returns in the past three years and 9.85% in the last 5 years. The Franklin India Conservative Hybrid Fund comes under the Hybrid category of Franklin Templeton Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Franklin India Conservative Hybrid Fund via lump sum is ₹10,000 and via SIP is ₹500.
| Min Investment Amt | ₹10,000 |
|---|---|
| AUM | ₹202Cr |
| 1Y Returns | 4.8% |
Fund Performance: The HDFC Retirement Savings Fund has given 10.27% annualized returns in the past three years and 9.89% in the last 5 years. The HDFC Retirement Savings Fund comes under the Hybrid category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Retirement Savings Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹159Cr |
| 1Y Returns | 3.2% |
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