Bandhan Conservative Hybrid Fund - Direct Plan
An open ended hybrid scheme investing predominantly in debt instruments
What is a Conservative Hybrid Fund?
Conservative Hybrid Funds balance relative stability and growth potential by blending debt instruments with equities. These funds aim to reduce risk while offering the potential for returns, making them suitable for investors seeking relatively steady income with some growth potential.
Regulations mandate conservative hybrid funds to invest 75%–90% in debt securities and 10%–25% in equities. This allocation provides investors with the relative stability of debt and the growth potential of equities, allowing for diversification across asset classes.
Conservative hybrid mutual funds, also called regular savings mutual funds, adopt a conservative investment strategy by primarily investing in debt securities. While debt securities face risks like credit, inflation, and interest rate risk, they are less exposed to market volatility. Conservative hybrid mutual funds aim to potentially provide steady income to investors.
Taxation for conservative hybrid funds depends on the holding period. Gains on units held for less than three years are taxed as Short-Term Capital Gains (STCG) at the investor's income tax slab rate. For units held over three years, Long-Term Capital Gains (LTCG) are taxed at 20% with indexation benefits.
- Min Investment 1,000
- Min SIP Amount 100
- Exit Load• If redeemed/switched out within 7 days from the
date of allotment:
- Up to 10% of investment: Nil, for remaining investment: 0.25% of applicable NAV.
• If redeemed/switched out after 7 days from date of allotment: Nil.
Scheme is suitable for a minimum investment horizon of 3 years
Tier 1 Benchmark : CRISIL Hybrid 85+15 - Conservative IndexAlternate Benchmark : CRISIL 10 Year Gilt Index
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 25/02/2010 Since inception | 1 year | 3 year | 5 year | 10 year | 25/02/2010 Since inception | |
| Bandhan Conservative Hybrid Fund - Regular Plan - Growth | 12.32 | 5.63 | 6.39 | 6.98 | 7.94 | 11,236 | 11,790 | 13,638 | 19,651 | 30,715 |
| 13.21 | 7.47 | 8.83 | 8.98 | 8.86 | 11,325 | 12,414 | 15,273 | 23,652 | 34,786 | |
| 10.67 | 5.60 | 5.44 | 6.91 | 6.39 | 11,070 | 11,777 | 13,037 | 19,512 | 24,841 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Harshal Joshi (w.e.f 28/07/2021) & Mr. Viraj Kulkarni (w.e.f 07/01/2022)
View fund performance of other funds managed by Mr. Harshal Joshi, Mr. Viraj Kulkarni
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/46xQzi1
Bandhan Conservative Hybrid Fund
(Scheme Risk-o-meter)
CRISIL Hybrid 85+15 - Conservative Index
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To provide regular income and capital appreciation over medium to long term.
- Investment predominantly in debt and money market instruments and balance exposure in equity and equity related securities.
Who Should Invest in Conservative Hybrid Fund?
Conservative hybrid funds, with their focus on debt securities, are suitable for risk-averse investors seeking lower exposure to market volatility. However, like all mutual funds, they are subject to risks.
These funds offer a mix of debt and equity securities, making them a potential good choice for risk-averse investors seeking diversification.
Conservative hybrid funds are ideal for investors aiming for income and capital appreciation over the medium to long term.
These funds may not suit investors looking for tax-saving options, as they are subject to Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG) tax.
FAQs on Conservative Hybrid Funds
What is the meaning of conservative hybrid mutual funds?
Conservative hybrid funds are also known as regular savings mutual funds. They are a type of hybrid fund which invests 75% to 95% of their total assets in debt securities and 10% to 25% of the fund's total assets are allocated to equities.
What are the advantages of a conservative hybrid fund?
Conservative hybrid funds allow a potential balance between risk and growth. Risk-averse investors may potentially benefit from exposure to equities while enjoying a relatively moderate level of risk. Conservative hybrid funds also allow investors to diversify their assets across debt] and equity. Investors may benefit from the relatively lower risk of debt securities and the growth potential of equities.
Are conservative hybrid funds safe?
Conservative hybrid funds adopt a conservative investment strategy and are classified as a moderately risky investment option. These funds invest in debt securities and equities and may allow investors to potentially mitigate risk due to this diversification. However, all mutual funds are subject to risks.
What are the disadvantages of conservative hybrid mutual funds?
Although conservative hybrid funds are a type of hybrid fund that invests predominantly in debt, they are subject to taxes similar to debt funds. STCG tax is levied on units held for less than three years. The profits are added to the investor's income and taxed according to the income tax slab. Units held over three years are subject to LTCG tax at 20%. Although these funds are moderately risky, their returns may be relatively lower due to the asset allocation.
Who should invest in conservative hybrid funds?
Risk-averse seeking investments predominantly in debt and money market instruments with a balanced exposure to equities may be suited to conservative funds. Conservative investors seeking diversification of their assets may also benefit from investing in conservative hybrid funds. Investors seeking regular income and capital appreciation in the medium to long term can consider conservative hybrid funds.