If you are looking for a conservative fund with less exposure to equities for better returns, you can opt for a good hybrid conservative fund. These schemes yielded a return of 13.93% last year. This is a monthly update of the November Conservative Hybrid Fund Recommendations list.
The good news is that there have been no changes to the list in October. However, one of our recommended schemes, the BNP Paribas Conservative Hybrid Fund, which was in the second quartile for three months, is in the third quartile this month. We will keep you updated on their performance. Until then, if you've invested in this plan, keep investing.
These schemes invest primarily in debt securities and a small portion of their group. These schemes invest 75-90% of the group in debt securities and 10-25% of the group in equity or equity. With small equity exposure, these schemes help generate slightly higher returns than pure debt schemes. However, investing in stocks also carries risks.
This is why these schemes are recommended for conservative investors who are willing to take a small risk of equities to get slightly higher returns than pure debt schemes. In other words, if you are a trusted investor and want to invest in stocks but don't have the risk needs needed to invest in a pure investment trust system, you can consider investing in this category.
The conservative hybrid scheme is similar to the old monthly income or MIP scheme used to invest a small portion of the group in stocks. The problem with PMI is that the exposure to equities is defined in various charts. However, after the SEBI reclassification, the investment rules for a conservative hybrid plan were clearly defined.
If you are a conservative investor and want to increase your returns by investing a little in your stocks, we recommend that you consider investing in a conservative hybrid scheme. However, keep in mind that stocks are very risky, especially in current market conditions. Do not invest in these schemes, which have a very short investment period. As you know, the stock market is currently very volatile.
These are the recommended conservative blend plans.
The best conservative hybrid fund to invest in 2021
ICICI Ordinary Prudential Provident Fund
Canaral Bico Wallet Hybrid Fund
Kotak Hybrid Debt Fund
BNP Paribas Hybrid Portfolio Fund
If you want to know how you chose these plans, see the methodology described below.
B2B has added a mixed investment trust plan to its candidate list using the following parameters:
Moving Average Profitability: Cumulative daily for the last 3 years.
Continuity over the last 3 years: The Hurst Index h is used to calculate the stability of the fund. The index h is a measure of the randomness of the NAV series of boxes. High H funds have lower volatility than low H funds.
i) If h = 0.5, the return series is called the Brownian geometric time series. It is difficult to predict this type of time series. b) If H 5, the chain is said to be stable. The higher the H value, the stronger the tendency of the chain.
Downside risk: We only considered the negative returns that the mutual fund scheme provides for this action.
x = returns less than zero
Y = X. Total of all squares
Number of days required to calculate Z = Y / ratio
Downtrend risk = Z. Square root of
i) Part of capital: Measured at Alpha Jensen over the last 3 years. Jensen's Alpha shows the risk-adjusted returns of an investment trust scheme compared to the market returns estimated by the Capital Asset Pricing Model (CAPM). A higher alpha value indicates that the portfolio is above the expected market return.
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