Many mutual fund advisors believe that 2026 is going to be the year of hybrid funds. Because of the uncertainties regarding the global economy and ever rising Indian stock market, advisors have been advising investors to move cautiously. In such a scenario they believe that investing in hybrid mutual funds - schemes that invest in equity and debt - may serve investors, especially new and inexperienced investors, better.
Conservative hybrid mutual funds are the entry to the world of hybrid funds. These schemes invest mostly in debt and a small percent in equity. As per the Sebi norms, conservative hybrid schemes must invest 75-90% in debt instruments and 10-25% in stocks. These schemes are ideal for investors looking to invest a small part of their corpus in equity to earn some extra returns.
