Conservative Hybrid Mutual Funds in India
Updated June 2026 · 27 active funds · data from AMFI NAVs · benchmark: NIFTY 50 Hybrid Composite Debt 15:85 Index (derived)
Conservative Hybrid funds are SEBI-defined hybrids that invest 75% to 90% of assets in debt instruments and 10% to 25% in equity. The large debt core — government securities, corporate bonds and money-market instruments — sets the risk profile, while the small equity sleeve adds a modest growth kicker that a pure debt fund lacks. The result sits a notch above fixed-income on the risk ladder: lower volatility and shallower drawdowns than equity-heavy hybrids, but with returns that move with both interest rates and a slice of the stock market. The debt portion carries interest-rate and credit risk; the equity portion still falls when markets correct, so capital is not guaranteed. In a portfolio these funds are often used as a step beyond fixed deposits, or as a lower-volatility allocation for investors with shorter horizons or lower risk appetite who still want some equity participation. FindMF benchmarks this category against the NIFTY 50 Hybrid Composite Debt 15:85 Index and computes returns, volatility, Sharpe and benchmark-relative metrics from AMFI daily NAVs using its disclosed methodology, so the small equity tilt's effect is visible on a consistent basis.
Who it suits: Cautious investors who want mostly-debt stability with a small equity boost, and a horizon of roughly 2-4 years.
89% of the 19 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | Parag Parikh Conservative Hybrid Fund PPFAS | +3.84% | +10.57% | +9.40% | 0.63 | -2.3% | 0.29% | ₹3.3K Cr |
| 2 | ICICI Prudential Regular Savings Fund ICICI Prudential | +3.84% | +9.85% | +9.03% | 0.59 | -3.1% | 0.42% | ₹3.3K Cr |
| 3 | HSBC Conservative Hybrid Fund HSBC | +3.41% | +9.74% | +8.38% | 0.31 | -6.1% | 1.24% | ₹139 Cr |
| 4 | Kotak Debt Hybrid Kotak Mahindra | +1.39% | +9.33% | +9.10% | 0.48 | -4.4% | 0.48% | ₹3.0K Cr |
| 5 | DSP Regular Savings Fund DSP | +3.02% | +9.28% | +7.86% | 0.28 | -4.5% | 0.19% | ₹183 Cr |
| 6 | SBI Conservative Hybrid Fund SBI | +4.33% | +9.18% | +9.10% | 0.61 | -3.6% | 1.04% | ₹9.7K Cr |
| 7 | Aditya Birla Sun Life Regular Savings Fund - Growth / Payment Aditya Birla Sun Life | +4.41% | +9.11% | +8.65% | 0.48 | -4.9% | 0.93% | ₹1.4K Cr |
| 8 | BARODA BNP PARIBAS Conservative Hybrid Fund Baroda BNP Paribas | +3.77% | +8.97% | - | 0.24 | -4.5% | 1.32% | ₹814 Cr |
| 9 | Nippon India Conservative Hybrid Fund Nippon India | +6.56% | +8.74% | +8.47% | 0.60 | -2.1% | 1.09% | ₹939 Cr |
| 10 | UTI Conservative Hybrid Fund UTI | +0.52% | +8.42% | +8.39% | 0.33 | -4.9% | 1.26% | ₹1.7K Cr |
| 11 | UTI Conservative Hybrid Fund - Direct Plan - Monthly Payment UTI | +0.52% | +8.42% | +8.39% | 0.33 | -4.9% | 1.27% | ₹1 Cr |
| 12 | HDFC Hybrid Debt Fund HDFC | +0.78% | +8.36% | +8.35% | 0.40 | -4.1% | 1.17% | ₹3.3K Cr |
| 13 | Franklin India Conservative Hybrid Fund Franklin Templeton | +0.46% | +8.34% | +7.28% | 0.13 | -4.0% | 0.75% | ₹183 Cr |
| 14 | CANARA ROBECO CONSERVATIVE HYBRID FUND Canara Robeco | +1.04% | +7.85% | +7.31% | 0.12 | -3.9% | 0.77% | ₹886 Cr |
| 15 | UTI Conservative Hybrd Fund - Regular Plan - Monthly Payment UTI | -0.05% | +7.76% | +7.75% | 0.20 | -5.2% | - | ₹2 Cr |
| 16 | Axis Conservative Hybrid Fund Axis | +1.24% | +7.15% | +6.71% | -0.01 | -5.9% | 1.10% | ₹229 Cr |
| 17 | BANDHAN Conservative Hybrid Fund Bandhan | +1.31% | +7.05% | +5.96% | -0.20 | -5.1% | 0.96% | ₹99 Cr |
| 18 | LIC MF Conservative Hybrid Fund LIC | +1.35% | +6.61% | +6.09% | -0.23 | -4.7% | 1.18% | ₹48 Cr |
| 19 | Sundaram Conservative Hybrid Fund (Formerly Known as Sundaram Debt Oriented Hybrid Fund) Sundaram | -1.14% | +5.87% | +7.06% | 0.06 | -4.2% | 1.14% | ₹20 Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are Conservative Hybrid funds taxed?
Most Conservative Hybrid funds hold under 35% equity, so for units purchased on or after 1 April 2023 the entire capital gain is taxed at your income-tax slab rate, regardless of how long you hold — there is no separate LTCG rate or indexation benefit. A few funds may sit closer to the 35% line, so check the specific scheme's equity allocation before assuming its tax treatment.
What is a reasonable expense ratio for a Conservative Hybrid fund, and how should I compare them?
Because so much of the portfolio is debt, costs matter a lot relative to expected returns — direct plans here often run well under 1%. Always compare the direct plan, not regular, and look at expense ratio alongside the debt portfolio's credit quality and the fund's volatility and Sharpe. On FindMF you can sort active Conservative Hybrid funds by TER and risk-adjusted return computed from AMFI NAVs to compare on a like-for-like basis.
How risky is the debt portion of these funds?
The 75-90% debt allocation drives most of the risk. Interest-rate moves affect bond prices, and any lower-rated corporate bonds add credit risk. Two Conservative Hybrid funds with similar headline returns can hold very different credit quality, so review the portfolio and FindMF's volatility and maximum-drawdown figures rather than returns alone.
Which benchmark does FindMF use for this category?
The default benchmark is the NIFTY 50 Hybrid Composite Debt 15:85 Index, which mirrors the category's small-equity, large-debt structure. FindMF aligns each fund's monthly returns to this index to compute alpha, beta and tracking metrics from AMFI NAVs, where at least 24 overlapping months of history exist.