Best Conservative Mutual Funds

Conservative mutual fund funds invest in low-risk instruments with the aim of outpacing average inflation. Conservative mutual funds invest in a mix of bonds, debt & money market instruments, and equity & equity-related securities. The conservative mutual funds do not expose the capital to any undue excessive risks. Some of the best conservative mutual funds in India aim to deliver capital appreciation and income to the investors.

The conservative mutual funds invest in government bonds, corporate debt securities, and other similar instruments with a low-risk profile. The funds generate regular steady income and may return long-term capital appreciation. The exposure of conservative funds in stocks is comparatively lower, and any equity investment is predominately in blue chip companies with a stable track record. This ensures that at least the capital is protected while increasing the chances of some capital gain.

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Top 10 Conservative Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Indiabulls Savings Income FundHybridModerate7.6%5star17
ICICI Prudential Regular Savings FundHybridModerately High10.6%5star1,710
Baroda Pioneer Conservative Hybrid FundHybridModerate12.4%4star25
BNP Paribas Conservative Hybrid FundHybridModerate10.6%4star390
Essel Regular Savings Fund HybridModerate9.2%4star37
Kotak Debt HybridHybridModerate12.6%4star264
IDFC Regular Saving FundHybridModerately High9.3%3star202
Canara Robeco Income Saver Fund HybridModerately High11.9%3star219
Aditya Birla Sun Life Regular Savings FundHybridModerately High6.0%3star1,787
Nippon India Hybrid Bond FundHybridModerately High-0.8%3star1,375
L&T Conservative Hybrid FundHybridModerately High10.0%3star36
SBI Debt Hybrid FundHybridModerate9.4%3star1,068
UTI Regular Savings FundHybridModerately High1.6%3star2,068
HDFC Hybrid Debt Fund HybridModerately High8.1%2star2,863
Sundaram Debt Oriented Hybrid FundHybridModerate2.0%2star43
View All Top 10 Conservative Mutual Funds

Features of Conservative Mutual Fund

Best conservative funds are aimed at investors seeking regular income while protecting the capital against any volatility. Conservative mutual funds invest in instruments backed by central or state governments, thereby reducing the risk of default. These funds provide investment solutions for investors nearing retirement or ones who are not willing to take risks. Conservative mutual funds also offer investment opportunities with optimal risk-return balance in-line with the fund goals.

The best conservative mutual funds in India maintain a balance between safety, liquidity, and profitability of the investment. These funds may also change the investment strategy based on the macro-economic condition, such as a change in interest rates or inflation. The conservative mutual funds can be ideal for diversification of the portfolio and to add balance to it. During the bear markets, conservative funds are likely to bring steady growth in your portfolio.

How to invest in conservative mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

How to invest in conservative mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

Major Advantages

One of the most crucial advantages of a conservative fund is that it ensures that there is no threat to the capital and the potential of losses are minimal which could be a possibility in other aggressive funds. The practically risk-free nature of the conservative fund frees you from the need to monitor it continuously and leaves you at ease. This is the biggest advantage for investors who panic during bear markets.

Conservative mutual funds are also comparatively averse to external factors than aggressive funds. These funds may not react or react only marginally in response to changing macro-economic conditions. Some of the best conservative mutual funds allow investors to protect their capital and earn a return without taking higher risks. This is highly beneficial for investors with a low-risk profile. With these funds, you can be assured of a steady rise over a long-term investment horizon without the sharp dips.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Indiabulls Savings Income Fund Direct Growth

Fund Performance: This fund has given 10.05% annualized returns in the last three years. In the last year, its returns were 7.63%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 7.63% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM17Cr
1Y Returns7.6%

ICICI Prudential Regular Savings Fund Direct Growth

Fund Performance: This fund has given 9.55% annualized returns in the last three years. In the last year, its returns were 10.58%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 10.58% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM1,710Cr
1Y Returns10.6%

Baroda Conservative Hybrid Fund Direct Growth

Fund Performance: This fund has given 7.84% annualized returns in the last three years. In the last year, its returns were 12.39%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.39% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹2,00,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹2,00,000
AUM25Cr
1Y Returns12.4%

BNP Paribas Conservative Hybrid Fund Direct Growth

Fund Performance: This fund has given 8.9% annualized returns in the last three years. In the last year, its returns were 10.58%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 10.58% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹1,000
AUM390Cr
1Y Returns10.6%

Essel Regular Savings Fund Direct Growth

Fund Performance: This fund has given 7.43% annualized returns in the last three years. In the last year, its returns were 9.22%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 9.22% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹1,000
AUM37Cr
1Y Returns9.2%

Kotak Debt Hybrid Fund Direct Growth

Fund Performance: This fund has given 7.86% annualized returns in the last three years. In the last year, its returns were 12.61%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 12.61% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM264Cr
1Y Returns12.6%

IDFC Regular Savings Fund Direct Plan Growth

Fund Performance: This fund has given 7% annualized returns in the last three years. In the last year, its returns were 9.29%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 9.29% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM202Cr
1Y Returns9.3%

Canara Robeco Conservative Hybrid Fund Direct Growth

Fund Performance: This fund has given 8.31% annualized returns in the last three years. In the last year, its returns were 11.94%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 11.94% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM219Cr
1Y Returns11.9%

Aditya Birla Sun Life Regular Savings Fund Direct Growth

Fund Performance: This fund has given 5.99% annualized returns in the last three years. In the last year, its returns were 5.95%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 5.95% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM1,787Cr
1Y Returns6.0%

Nippon India Hybrid Bond Fund Direct Growth

Fund Performance: This fund has given 4.51% annualized returns in the last three years. In the last year, its returns were -0.78%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing -0.78% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM1,375Cr
1Y Returns-0.8%

L&T Conservative Hybrid Fund Direct Growth

Fund Performance: This fund has given 6.94% annualized returns in the last three years. In the last year, its returns were 10%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 10% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹10,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹10,000
AUM36Cr
1Y Returns10.0%

SBI Debt Hybrid Fund Direct Growth

Fund Performance: This fund has given 5.98% annualized returns in the last three years. In the last year, its returns were 9.41%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 9.41% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM1,068Cr
1Y Returns9.4%

UTI Regular Savings Fund Direct Growth

Fund Performance: This fund has given 5.79% annualized returns in the last three years. In the last year, its returns were 1.57%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 1.57% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM2,068Cr
1Y Returns1.6%

HDFC Hybrid Debt Fund Direct Growth

Fund Performance: This fund has given 6.25% annualized returns in the last three years. In the last year, its returns were 8.14%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 8.14% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM2,863Cr
1Y Returns8.1%

Sundaram Debt Oriented Hybrid Fund Direct Plan Growth

Fund Performance: This fund has given 4.59% annualized returns in the last three years. In the last year, its returns were 2%. It has continually hit its benchmark in the Hybrid segment.

Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 2% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM43Cr
1Y Returns2.0%

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