Conservative hybrid funds have managed to contain the loss well in the current equity market fall and have outperformed the other hybrid funds categories. Hybrid funds invest in both equity and debt assets, come in all shapes and are preferred parking avenue for low to medium risk appetite investors. Conservative hybrid funds are one such category allocate 10-25% in equity while the rest in debt. Conservative investors who want to taste equity risk and get slightly higher returns than the bank fixed deposits (FDs) can consider investing in these funds. They are tax efficient as compared to FDs; holding period of minimum three-year attracts long term capital gain tax.