Who Should Invest in Conservative Mutual Funds?
1. People who wants to Start Investing in Mutual Funds: Conservative Mutual Funds are excellent option for those investors who are beginners in the field of mutual fund investment as conservative funds has lower risk as compared to any other fund scheme. Lower risk will attract the investors and also gives them confidence about the mutual fund market.
2. Investors who have Low Risk Appetite: Conservative Mutual fund is ideal for those investors who look for lower risk in investment scheme. As the majority investment is done in debt which provides lower risk and constant returns to the investors. Equity portion helps the investor to grow there investment with a better pace.
3. Investors who Look for Funds with Lower Expense Ratio: Almost all Conservative mutual funds have lower expense ratio as compared to expense ratio of other funds in mutual fund market. Expense ratio is also seen as a decision maker for investment as lower the expense ratio higher will be the net return to the investor.
4. Investors who Look for Diversified Investment: Conservative mutual funds diversify the investment as they invest a lot in debt, they will also invest in equity thus balancing the risk.
5. Investors with Short-Term Goals: Conservative fund can be ideal investment horizon if the investment horizon is around three years. So for short-term goals, this could be your go-to fund.