What kind of mutual funds would you suggest for long-term debt allocation? | Value Research Dhirendra Kumar talks about the long-term investment avenues for conservative investors
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What kind of mutual funds would you suggest for long-term debt allocation?

Dhirendra Kumar talks about the long-term investment avenues for conservative investors

What kind of mutual funds would you suggest for someone's long-term debt allocation?
- Ankit Jain

There are two kinds of funds that you can look to invest in - one is, if you are a completely risk-averse person, look no further than short-term bond funds. But consider a conservative hybrid fund if you are a conservative investor willing to take some chances but don't want to invest in equity substantially. These funds invest about 15-20 per cent of their assets into equity while the rest is invested in fixed income. My sense is, with these funds, your long-term investment will not be at risk of the wild movement of the equity market, and there would be a very high likelihood of beating inflation better with a five-seven years' time frame with very low risk.


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