Top 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
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
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Hi suresh, I am planning quit from Franklin India focused equity fund. Any suggestions on quitting & selecting a new MLC fund. Also the size of Aggressive hybrid funds in Icici & Hdf has increased drastically….would it impact the performance. Any idea if we can consider them for retired employees…
Hello Saipraveen, If the size is very high, generally fund manager may have to be more careful while investing. Sometimes size matters. Hence I feel when you are diversifying your portfolio, invest in largecap/balanced funds that too across 5-8 mutual fund schemes. These hybrid funds are good for retired employees too unless you need money in near term. Due to stock market volatality, the returns in short term may be negative, however one should expect good returns for 5-10 years time frame.
HDFC Balanced Fund – is now changed to “HDFC Hybrid Equity Fund”.What is your advise on that, do we continue or should i exit.
You can continue to invest as there is no change in fundamentals in this mutual fund scheme
The point is that will I be charged for LTCG because my units in HDFC Balanced Funds have been extinguished and merged with HDFC Hybrid Equity Fund. That’s more worrisome to me.
I need some mutualfund plan which provides monthly and quarterly Dividend. Please suggest me for same.
Hi Parth, You can invest in any of these mutual funds indicated with “Dividend” option.
KINDLY SUGGEST LOW RISK HIGH RETURN MUTUAL FUND WHERE I CAN GET MONTHLY DIVIDEND
Hi Sunil, You can invest any of these mutual funds with an dividend option. All these are low risk high return funds.
Hello Sir,
Would like to invest INR .15,000/- per month.
Please advise how to split and invest in Mutual funds as short term (1 Year/3 years) and high return + Tax saving.
Thank you in advance.
Hi Karthikeyan, I don’t advce you to invest in mutual funds 1 or 3 years. If you still want to proceed, you can look for debt funds. Regd tax saving, you can check this article which provides you good tax saving mutual funds. https://myinvestmentideas.com/2018/01/top-8-best-elss-tax-saving-mutual-funds-to-invest-for-2018-2019/
Thanks Mr. Suresh.
Why not to invest in MF 1 or 3 years?
Any specific reasons please!
Also advise is it okay to invest for 5 years?
Thanks in advance.
Karthikeyan, There are market fluctuations in short term which would get eliminated in longer run.
Hi Sir
I want to invest 100000 in MF as a one time investment and want to monthly return, suggest me which is the best among all.
Hi Deepak, there are no such mutual fund schemes where you can get monthly income. There are MIP Mutual Funds which can provide regular income, though not guaranteed, you can try such funds
Hi
Suresh
Hope all are going great
I wanted to invest approx ₹ 150000/- at Mutual Fund and need monthly or quarterly return.
Let me which Fund will be good for me.
Thanks and Regards
Dipika
Hi Dipika, there are no mutual funds which can give you fixed / monthly / quarterly returns. You may try for MIP Mutual funds which would provide regular returns though not guaranteed
Hello
Pradip Sir
I am willing to take moderate risk
35k had been distributed in this way ,please check if all okay or not ,I am willing to continue 10 to 12 years (long term);
Target 12% to 14 % return
A. Large cap
1.kotak Select -5k
2.sbi blue chip -5k
B.Small and mid cap
1. mirac asset Emerging Blue chip -5k
2. Reliance small cap – 6k
C.Diversified equity
1.Aditya Birla Sun life Advantage Fund -5k
D.Balanced Fund
1.SBI Magnum Balanced Fund -9k
Please advice ,if you think to change any fund
Good funds dilip, you can invest in them.
Why regular plans?
.
Direct gives more returns.
please suggested me, to invest 5000/month in mutual fund.which fund are suitable for me to invest 5 year plan.
My Investment are as follows:
(i) SBI BLUECHIP FUND SIP-3,000/-PM.
(II) SBI MAGNUM MULTICAP FUND-SIP-3,000/PM.
(III) ABSL SHORT TERM FUND.LUMPSUM 1,50,000.
Then (A) STP OF 5,000/-PM From ABSL Short Term Fund to ABSL TOP 100.
(B) STP OF 5,000/-PM From ABSL Short Term Fund to ABSL Advantage Fund.
(C) STP OF 5,000/-PM From ABSL Short Term Fund to ABSL Small and Midcap fund.
(iv) KOTAK Opportunities direct Plan LUMPSUM-1,20,000.
Then STP OF Rupees 1,000/- PM from KOTAK Opportunities direct Plan to KOTAK Focused fund.
Also I M planning to start two Fresh SIP 5,000/-PM for 5 years period. My age is 48 Years.Please suggest some good funds to start.
Your Valuabe comments please.
Thanks
good funds, stay invested
L&T emmerging business fund,
HDFC top 200 fund
Hello Suresh,
Thank you for sharing valuable information on Top 10 MF in 2018. All these funds are top rated today. I'd seen all these funds never stay in Top for 2-3 years. Example, ICICI Pru Value Discovery fund. Now this fund has poor rating. All financial experts says that one should invest in MF for at least 5 years to get good returns.
Question is that a person starts investing in top rated funds today shall continue for 5-7 years irrespective of ratings after 2-3 years?
Regards
Mukesh
Hi Mukesh, I understnad your concern. Thats is the reason, I keep telling investors that one should invest in 5-8 mutual fund schemes and not just 2-3. In this case, even if 5 could be top funds and balance 2-3 could be average performers, you would still earn 15% annualised returns.
Good article, Mr Suresh. But I'm also curious as to why you would even suggest Regular plans over Direct plans in some of the funds you have listed? All of the above funds you have listed should have been a direct plan. Lower expense ratios = high returns. All risk factors like σ, Sharpe ratio, Sortino ratio, β are relative to the NAV in direct and regular plans. α is generally always more in the case of direct plans. I see no point in suggesting Regular plans at all.
Okay, I get that you have used 5-year data for analysis since direct plans started only in 2013 and can offer a maximum of 3 years worth of data. But nonetheless, after you have arrived at your conclusions about the Regular plans using their 5-year data, you should eventually suggest the Direct Plan counterpart for the future.
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
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.
Hi Suresh,
Does the large size of a mutual fund impact its performance
Nice
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.
Again; Best Article