SBI Conservative Hybrid Fund

With these funds, the fund manager must invest at least 75% of total assets in fixed income securities like government securities, bonds, etc. While the remaining 25%, he/she needs to invest in equity or equity-related instruments.

SBI Debt Hybrid Fund Facts

The following table shows some of the crucial facts about the SBI Debt Hybrid Fund:

Investment Objective

The investment objective of the SBI Conservative Hybrid Fund is to offer a flexible investment opportunity to investors. With SBI Conservative Hybrid Fund, investors can primarily invest in money markets or debts and, secondarily, in equity and equity-related instruments. It aims to provide safe avenues due to the significant chunk of investments in the debt portion.

Fund Summary

Following are the two types of investment options that SBI Conservative Hybrid Fund offers:

1. SBI Conservative Hybrid Fund- Regular Plan-Growth:

   • Expense ratio: 1.1%

   • Exit Load: 1.0% in 365 days

   • AUM (Fund Size): Rs. 7250.39 Cr

   • Net Asset Value (NAV): Rs.56.1325 (as of April 03, 2023)

   • Returns (1 year): 5.48%

   • CAGR (Since inception): 8.09%

   • Lock-in Period: No Lock-in period

   • Minimum Investment: The scheme has a minimum initial investment of Rs. 5,000 lump sum and a minimum additional investment of Rs. 1,000. For SIP, the minimum initial investment is Rs. 1,000.

2. SBI Conservative Hybrid Fund- Direct Plan-Growth:

   • Expense ratio: 0.57%

   • Exit Load: 1.0% in 365 days

   • AUM (Fund Size): Rs.7250.39 Cr

   • Net Asset Value (NAV): Rs.60.6305 (as of April 03, 2023)

   • Returns (1 year): 6.03%

   • CAGR (Since inception): 8.81%

   • Lock-in period: No Lock-in Period

   • Minimum Investment: For SIP, the minimum investment is Rs. 500, and for a lump sum, it is Rs. 5000.

Fund Return Summary

The table below shows the absolute and annualized returns of the SBI Conservative Hybrid Fund:

1. SBI Conservative Hybrid Fund returns- Regular Plan-Growth (as of June 22, 2022)

   Period Invested for	Absolute Returns	Annualized Returns
   One week	-0.52%	-
   One month	-1.01%	-
   Three months	-1.58%	-
   Six months	-1.93%	-
   Year-To-Date	-2.58%	-
   1 Year	4.76%	4.76%
   2 Year	25.96%	12.23%
   Since Inception	421.27%	8.07%

2. SBI Conservative Hybrid Fund Returns- Direct Plan-Growth (as of 22nd June 2022)

   Period Invested for	Absolute Returns	Annualized Returns
   One week	-0.51%	-
   One month	-0.96%	-
   Three months	-1.45%	-
   Six months	-1.67%	-
   Year-To-Date	-2.33%	-
   1 Year	5.36%	5.36%
   2 Years	27.44%	12.89%
   Since Inception	134.90%	9.45%

Pros and Cons

Benefits of the SBI Conservative Hybrid Fund 

• Better Returns than FDs:  SBI Conservative Hybrid Fund has historically given better returns than the traditional investment plans like FD. The reason for higher returns is its flexibility to include equity in the portfolio. The higher returns also come with a risk that is comparatively less. That is why it is worth investing in.

• Comparatively Less Risky than Other Hybrid Funds: SBI Conservative Hybrid Fund is a Conservative Hybrid Fund. These funds carry lower risk and focus more on the safety of the principal amount. Along with this, it also aims to gain higher returns. If compared to other hybrid funds, it carries lower volatility and risks.

• Diversified Portfolio: A diversified portfolio is a key to any investment strategy. It reduces the portfolio risk. SBI Conservative Hybrid Fund has a well-diversified portfolio with a mix of debt and equity. A predominant investment in debt instruments ensures a safe return to the investor's portfolio.

• Better Long-Term Results: SBI Conservative Hybrid Fund has shown comparatively higher returns when compared with S&P BSE 10-year sovereign bond index. So, it indicates that the fund performs better and results in the long term.

• Low Downside Risk: The fund assets benefit investors in terms of low downside risks in a volatile market. Historically, this fund has seen a very low downside in significant market downside periods. It reduces the risk for the investor.

• Quick Recovery: This fund has shown a faster recovery from the fall than other hybrid funds. The fund is secure and has the potential to recover from losses in a shorter duration which helps in the longer run.

• Convenient Option: SBI Conservative Hybrid Fund offers investors convenient ways to invest. Investors can invest in the form of SIP or lumpsum amounts. In addition, the online interface of the SBI Conservative Hybrid Fund makes the investment and redemption process much easier for investors.

Who Should Invest in the SBI Conservative Hybrid Fund?

Investors who fit in any of the below-mentioned categories should invest in an SBI Conservative Hybrid Fund.

• Investors are looking forward to investing a small portion of their equity money and aiming to get extra returns.

• Investors that are looking for some capital growth with stable returns.

• Investors who are willing to take low to moderate risks.

• Senior citizens close to retirement are looking for post-retirement income options. 

• Investors with investment tenure of a minimum of 3 to 5 years.

• Investors seek higher returns than FD by taking a minimum risk.

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