Hybrid Fund Categories
Conservative Hybrid Funds
Mostly debt with 10–25% equity.
Updated 27 September 2026 · SEBI rules as of 2026
SEBI mandate
10–25% equity; 75–90% debt
Hybrid Fund CategoriesOverview
Conservative hybrid funds (formerly monthly income plans) hold 75–90% debt and 10–25% equity.
| Particular | Details |
|---|---|
| SEBI mandate | 10–25% equity; 75–90% debt |
| Tax treatment | Debt / slab-rate rules |
| Suited for | Conservative investors; 3-year goals |
What to check
| Parameter | Why |
|---|---|
| Equity range | Actual equity exposure over time |
| Debt quality | Credit profile of debt portion |
| Drawdowns | Fall during market corrections |
| Expense ratio | Direct vs regular |
| Rebalancing | Automatic asset allocation benefit |
Plan your investment
Frequently asked questions
Are hybrid funds safer than equity funds?
Usually less volatile, but they still carry market risk in the equity portion.
Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Information is educational and may change with SEBI / tax rules — verify with the AMC, AMFI or SEBI. FinancePortal is not an investment adviser.