Top 10 Low Risk-High Return Mutual Funds to invest in 2018

Top 10 Low Risk High Return Mutual Funds to invest in 2018Top 10 Low Risk-High Return Mutual Funds to invest in 2018


If you are investing in mutual funds, you might be thinking whether there are any low risk high return mutual funds in India. There are several mutual fund schemes for investment in India, however every fund carries some risk.  If we take midcap / smallcap funds they are high risk, but would provide higher returns. Largecap and diversified on other hand provides moderate risk, but provide medium to high returns. We have identified top 10 low risk high return mutual funds which can be invested in 2017-2018. These are the best low risk high return mutual funds that can provide good returns in the range of 12% to 15% in the medium to long term of 5-10 years.

Also read: Best High Risk-High Return Sector Mutual Funds to invest

How we picked up Top 10 Low Risk High Return Mutual Funds to invest in 2018


There is no specific definition when I say Low risk. The risk is still not eliminated, however comparatively they are on the lower side compared to medium risk and high risk funds. We have picked up these funds which are low risk and high returns based on below parameters:

1) Mutual fund schemes that invests 60% to 70% in equity and balance in debt instruments.

2) Schemes that have been classified as low risk and high returns by Value Research Online (VRO) under Risk Grade and Return Grade parameters.

3) Mutual Fund schemes that have performed well in the past 1, 3 and 5 years tenure which indicates that such funds has beaten its peers in terms of returns.

4) We have included Direct Plans + Regular Plans (both) in assessing the low risk high return funds. However direct plans have come in < 5 years, hence returns from such direct plan of mutual funds in 5 years column are not indicated.

5) Mutual fund schemes where AUM (Assets Under Management) is more than Rs 500 Crores are considered here which indicates investor confidence in such schemes.

6) Mutual funds that has good rating of 4 star and 5 star by VRO and Rank-1 and Rank-2 by CRISIL.

Some of the funds would be a repetition from my earlier recommendations as they have continued to perform well.

Top 10 Low Risk High Return Mutual Funds to invest in 2018


Now let us jump and check about these top 10 mutual fund schemes.

Top#1: Aditya Birla Sun Life Frontline Equity Fund – Direct Plan


Fund Objective: This MF scheme objective is to generate long term growth of investment, through a stock portfolio with a target allocation of 100% equity aiming at being as diversified across various industries and or sectors.

Fund Performance: This is a direct plan; hence performance of 5 years is not available. This fund has beaten its peers in large cap segment + direct plan segment and provided 12% annualized returns in the last 3 years. In the last 1 year, it gave 32% returns. If you have invested Rs 1,000 per month through SIP for 3 years, your total investment would have been Rs 36,000 and your investment value would have grown to Rs 46,000 now.

Why to invest: The fund has beaten its peers and provided 12% annualized returns in the last 3 years (large cap + direct plan). Value Research Online rated this fund as 5 Star and categorized as Low Risk and High Return fund. Crisil has ranked this fund as Rank-2 (1 is good and 5 is worst). This is one of the best low risk and high return mutual funds in India.

Top#2: Mirae Asset India Opportunities Fund – Regular Plan


Fund Objective: The mutual fund scheme aims to maximize long term capital appreciation by finding investment opportunities resulting from Indian economic growth and its structural shifts through investing in equity and equity related securities.

Fund Performance: This fund has beaten its peers and provided 22% annualized returns in the last 5 years. In the last 1 year, it gave 39% returns. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 104,000 now.

Why to invest: The fund has beaten its peers and provided 22% annualized returns in the last 5 years. Value Research Online rated this fund as 5 Star and categorized as Low Risk and High Return fund. Crisil has ranked this fund as Rank-2 (1 is good and 5 is worst). It is one of the top 10 low risk and high return mutual funds to invest.

Top#3: SBI Blue Chip Fund – Direct Plan


Fund Objective: The scheme would invest in stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 Index.

Fund Performance: This is direct plan; hence performance of 5 years is not available. This fund has beaten its peers and provided 14% annualized returns in the last 3 years. In the last 1 year, it gave 30% returns. If you have invested Rs 1,000 per month through SIP for 3 years, your total investment would have been Rs 36,000 and your investment value would have grown to Rs 46,000 now.

Why to invest: The fund has beaten its peers and provided 14% annualized returns in the last 3 years. Value Research Online rated this fund as 5 Star and categorized as Low Risk and High Return fund. Crisil has ranked this fund as Rank-2 (1 is good and 5 is worst). This is one of the good low risk and high return mutual funds to invest in 2018.

Top#4: Mirae Asset Emerging Blue-chip Fund – Regular Plan


Fund Objective:  This fund aims to generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of at least Rs 100 Crores at the time of investment.

Fund Performance: This fund has beaten its peers and provided 32% annualized returns in the last 5 years. In the last 1 year, it gave 45% returns. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 135,000 now.

Why to invest: The fund has beaten its peers and provided 32% annualized returns in the last 5 years. Value Research Online rated this fund as 5 Star and categorized as Low Risk and High Return fund. Crisil has ranked this fund as Rank-2 (1 is good and 5 is worst). This is one of the best low risk and high return mutual funds to invest in 2018.

Top#5: Motilal MOST Focused Multicap 35 Fund – Direct Plan


Fund Objective: The fund seeks to achieve long term capital appreciation by primarily investing in a maximum of 35 equity & equity related instruments across sectors and market-capitalization levels.

Fund Performance: This is a direct plan, hence performance of 5 years is not available. This fund has beaten its peers and provided 22% annualized returns in the last 3 years. In the last 1 year, it gave 40% returns. If you have invested Rs 1,000 per month through SIP from the inception of this fund (43 months), your total investment would have been Rs 43,000 and your investment value would have grown to Rs 65,000 now.

Why to invest: The fund has beaten its peers and provided 22% annualized returns in the last 3 years. Value Research Online rated this fund as 5 Star and categorized as Low Risk and High Return fund. Crisil has ranked this fund as Rank-1 (1 is good and 5 is worst).

Also Read: Top ELSS Mutual Funds for 2017-2018 to save income tax and get higher returns

Top#6: ICICI Pru Balanced Mutual Fund – Regular Plan


Fund Objective: The scheme invests in equities and related securities as well as fixed income and money market securities. It invests 60% minimum in equity and balance in debt related instruments.

Fund Performance: This fund has beaten its peers and provided 19% annualized returns in the last 5 years. In the last 1 year, it gave 25% returns. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 96,000 now.

Why to invest: The fund has beaten its peers and provided 19% annualized returns in the last 5 years. Value Research Online rated this fund as 4 Star. Crisil has ranked this fund as Rank-3 (1 is good and 5 is worst). This is one of the good low risk and high return mutual funds to invest in 2018.

Top#7: HDFC Balanced Fund – Regular Plan


Fund Objective: The scheme invests in equities and related securities as well as fixed income and money market securities. It invests 60% minimum in equity and balance in debt related instruments.

Fund Performance: This fund has beaten its peers and provided 19% annualized returns in the last 5 years. In the last 1 year, it gave 26% returns. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 96,000 now.

Why to invest: The fund has beaten its peers and provided 19% annualized returns in the last 5 years. Value Research Online rated this fund as 4 Star. Crisil has ranked this fund as Rank-2 (1 is good and 5 is worst). This is one of the best mutual funds in low risk and high return category.

Top#8: L&T India Prudence Fund – Regular Plan


Fund Objective: The fund scheme aims periodic returns and long-term capital appreciation from a balanced portfolio of debt and equity.

Fund Performance: This fund has beaten its peers and provided 19% annualized returns in the last 5 years. In the last 1 year, it gave 26% returns. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 96,000 now.

Why to invest: The fund has beaten its peers and provided 19% annualized returns in the last 5 years. Value Research Online rated this fund as 4 Star and categorized as Low Risk and High Return fund. It is one of the top 10 low risk and high return mutual funds to invest in India.

Top#9: SBI Magnum Balanced Mutual Fund – Regular Plan


Fund Objective: The fund scheme aims periodic returns and long-term capital appreciation from a balanced portfolio of debt and equity.

Fund Performance: This fund has beaten its peers and provided 18% annualized returns in the last 5 years. In the last 1 year, it gave 24% returns. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 95,000 now.

Why to invest: The fund has beaten its peers and provided 18% annualized returns in the last 5 years. Value Research Online rated this fund as 4 Star. Crisil has ranked this fund as Rank-3 (1 is good and 5 is worst). This is one of the good mutual funds under low risk and high return category which you can invest for long term.

Top#10: Aditya Birla Sun Life 95 Balanced Fund – Regular Fund


Fund Objective: The fund aims to achieve long-term capital appreciation and current income from a balanced investment portfolio with an allocation of 60% equity and 40% debt and money market securities.

Fund Performance: This fund has beaten its peers and provided 18% annualized returns in the last 5 years. In the last 1 year, it gave 25% returns. If you have invested Rs 1,000 per month through SIP for 5 years, your total investment would have been Rs 60,000 and your investment value would have grown to Rs 95,000 now.

Why to invest: The fund has beaten its peers and provided 18% annualized returns in the last 5 years. Value Research Online rated this fund as 4 Star. Crisil has ranked this fund as Rank-2 (1 is good and 5 is worst). It is one of the top and best low risk and high return mutual funds to invest in 2018.

Also Read: Top 10 Mutual Funds from Largecap, Diversified and Balanced Category to invest in India

Summary of Top 10 Low Risk and High Return Mutual Funds to invest


List of Top 10 Low Risk High Return Mutual Funds to invest in 2018 in India

Conclusion: These are Best Low Risk and High Return Mutual Funds. One can invest in these funds through SIP or lumpsum (during market corrections). However if you invest for short term of 1 year to 5 years, you may not expect good returns. Invest in 5-7 such mutual funds for medium to long term of 5-10 years to get higher returns. 

All the best !!!

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Suresh

Top 10 Low Risk High Return Mutual Funds to invest in 2018

7 comments

  • Prashanth

    Hi Suresh ji,

    I did not understand why there is a recommendation between Direct and Regular plans in  the above mutual funds. 

    If I invest in all the above  mutual funds only in Direct plans, does the returns vary against the above recommended Regular plans? Please clarify.

    Thanks,

    Prashanth

     

     

    • Babu

      I also do invest only in Direct funds, after reading this article I'm also confused. and why Suresh havn't reply for ur good question ?  I'm also waiting for his answer.

      • Hi Babu and Prashanth, The parameters used for low risk high returns include direct plans where they provide 0.5% to 1.5% higher returns compared to regular plans. When I said direct plans, I meant that they give high returns. You can go for regular plans too, however returns would be slightly on the lower side. 

  • sai praveen

    Hi Suresh,

    Does the large size of a mutual fund impact its performance

     

  • Kamal Garg

    Nowadays, I think all Funds have 'direct' as well as 'regular' schemes. 

    It is better to make a list with only either 'directs' or 'regulars' and not mixed one. It confuses when making comparison with other schemes.

  • Kumar

    Again; Best Article

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