Conservative Hybrid Funds are ideal for investors who want capital protection with modest growth. These funds invest mostly in debt (75–90%) for stability and a smaller portion in equities (10–25%) to capture market-linked growth. This balanced approach offers reduced volatility while still allowing some upside potential.

1. Debt-Dominant Portfolio: Provides steady income and capital protection.
2. Equity Exposure: Adds limited growth potential without high risk.
3. Lower Volatility: Safer than equity or aggressive hybrid funds.
4. Professional Management: Fund managers actively rebalance allocations.
5. Diversification in One Fund: Spread risk across asset classes easily.

1. Ideal for medium-term investors (2-4+ years).
2. Suitable for those seeking moderate growth without risking capital.
3. Offers a one-stop diversified solution without managing multiple investments.

1. Capital Protection: Debt-heavy allocation reduces market swings.
2. Steady Returns: Interest from debt provides regular income.
3. Better than Pure Debt: Limited equity exposure can improve returns.
4. Lower Risk: Less sensitive to market turbulence than equity funds.

• Limited Upside: Smaller equity portion means lower gains in bull markets.
• Not Risk-Free: Debt risks like interest rate changes still apply.
• Moderate Returns: Generally lower than aggressive or equity-focused funds.

Treated like debt funds for tax purposes.

TCG (<36 months): Added to income and taxed as per slab.

LTCG (≥36 months): 20% with indexation benefits (subject to rules).

Dividend Tax: Taxed according to income slab rates.