What are risks involved in investing in hybrid conservative mutual funds. Is it wise to invest all money in a single hybrid fund as most funds have similar holdings or are there some hidden risks in investing in a single fund?
Go for passive index investing. Ignore active mutual funds that are underperforming the index.
I don’t want to invest in full equity fund, so i choose a conservative hybrid fund, what i wanted to know is that is it wise to invest all in a single fund.
Why don’t you look at bonds rather than these ? You can get similar returns with lesser risk.
Also if you park money in funds across several institutions then you do reduce the risk of loosing it all if one institution where you parked your money goes down.
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Yeah, it’s a good point. Thankyou for the information.
On issue with putting all within hybrid funds - If market crashes and you need some money, you will have to sell both equity and debt. So atleast some portion should be in debt/equivalent alone i think.
Nifty 50 Index fund (ICICI/HDFC/UTI/or any) - 40%
Arbitrage fund - 10%
short/medium duration debt funds - 50%