Let us do a quick review of new fund launched on 7th May 2021 – Parag Parikh Conservative Hybrid Fund NFO. Let us see if and who should invest in this fund.
As usual, I will try to keep it short – to save your time.
Disclaimer : Needless to state that this review is my personal opinion and you should either consult your Investment Advisor or do your own research before taking any decision.
So What is a Conservative Hybrid Fund?
Since this fund belongs to Conservative Hybrid Fund category, let us understand what that means for us. Such funds predominantly invest in debt instruments but do have small exposure to equity.
Naturally they are less volatile in nature compared to Equity funds. However as equity exposure is less, even returns will be on lower side.
This type of fund suits for people with conservative mindset. If someone wants to park some money which does not go up and down a lot but want little extra than pure debt funds or FDs, then this category could be your choice.
Ideally suitable for regular income with little better returns than debt funds. So you take small equity risk and get little more.
Next let us see how fund wish to allocate money to different asset classes.