Best Conservative Mutual Funds

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.

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.

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.