When the stock market is on a relentless bull run, many investors seek safety, especially conservative investors with low risk appetite. One of the avenues for such investors is conservative hybrid schemes.
These are open-ended schemes that invest between 10-25 per cent of the assets into equities and rest in bonds. The asset allocation ensures that the investor gets small exposure to stocks in a predominantly bond portfolio, making them relatively less volatile. “The higher debt allocation provides stability with lower volatility, while the equity exposure varies between 10- 25 per cent, which can enhance the overall return,” says Ravi Kumar TV, founder, Gaining Ground Investment.
