Best Mutual Funds for Investors with a Low-risk Appetite
Last Updated : July 19, 2019, 3:31 p.m.
If you think that mutual funds are meant for only aggressive investors, you are in a myth. There are tons of mutual funds that can serve the purpose of individuals having an aversion to greater risks. Yes, these are debt funds that provide a stability in terms of income flow to the investors. Debt funds can be available in several categories – short duration, long duration, bond funds, money-market, liquid, etc. These funds invest predominantly in bonds, debentures and money-market instruments to provide stable returns. Without much ado, let’s check out the best mutual funds for investors with a low-risk appetite
List of Best Liquid Funds to Invest in
Liquid funds invest in liquid instruments such as commercial paper, certificates of deposits and others having a shorter maturity period of 3-6 months. The list of top-performing liquid funds is shown in the table below. Take a look.
| Liquid Funds | Rating | Net Asset Value (NAV) | 1-year Return | 3-year Return | 5-year Return | 10-year Return | Minimum Investment Needed (In ₹) |
|---|---|---|---|---|---|---|---|
| Axis Liquid Fund | 5 Star |
Growth - ₹2,108.3503
Dividend Weekly - ₹1,002.5511 |
7.49% | 7.135 | 7.64% | - | 500 |
| ICICI Prudential Liquid Fund | 3 Star |
Growth - ₹281.175
Dividend Yearly - ₹106.0729 |
7.42% | 7.07% | 7.61% | 7.85% | 100 |
| Baroda Liquid Fund | 5 Star |
Growth - ₹2,183.1192
Dividend Weekly - ₹1,000.5803 |
7.46% | 7.12% | 7.66% | 7.84% | 5000 |
| Reliance Liquid Fund | 5 Star |
Growth - ₹4,636.6225
Dividend Weekly - ₹1,531.7778 |
7.55% | 7.13% | 7.64% | 7.84% | 100 |
| HDFC Liquid Fund | 3 Star |
Growth - ₹3,736.3402
Dividend Weekly - ₹1,031.4857 |
7.33% | 6.96% | 7.54% | 7.745 | 5000 |
Best Corporate Bond Funds to Invest in
Corporate bond funds by name suggests that they invest predominantly in bonds issued by companies. Here’s a list of top performers in the said category.
| Corporate Bond Funds | Rating | Net Asset Value (NAV) | 1-year Return | 3-year Return | 5-year Return | 10-year Return | Minimum Investment Needed (In ₹) |
|---|---|---|---|---|---|---|---|
| Aditya Birla Sun Life Corporate Bond Fund | 4 Star |
Growth - ₹74.1018
Dividend Monthly - ₹11.7413 |
10.27% | 8.12% | 8.81% | 8.38% | 100 |
| HDFC Corporate Bond Fund | 4 Star |
Growth - ₹21.6252
Dividend Quarterly - ₹10.4145 |
10.99% | 8.30% | 8.91% | - | 5000 |
| ICICI Prudential Corporate Bond Fund | 3 Star |
Growth - ₹19.6952
Dividend Weekly - ₹10.3167 |
9.36% | 7.68% | 8.33% | - | 5000 |
| Reliance Prime Debt Fund | 4 Star |
Growth - ₹39.8776
Dividend Weekly - ₹17.1179 |
7.79% | 7.31% | 7.98% | 8.00% | 1000 |
| Axis Corporate Debt Fund | 3 Star |
Growth - ₹11.3288
Dividend Weekly - ₹9.8474 |
5.97% | - | - | - | 5000 |
Best Short Duration Funds to Invest in
These funds are open-ended debt schemes that invest in instruments with a maturity period of 1-3 years.
| Short Duration Funds Funds | Rating | Net Asset Value (NAV) | 1-year Return | 3-year Return | 5-year Return | 10-year Return | Minimum Investment Needed (In ₹) |
|---|---|---|---|---|---|---|---|
| HDFC Short Term Debt Fund | 5 Star |
Growth - ₹21.2679
Dividend Fortnightly - ₹10.2595 |
9.29% | 7.78% | 8.41% | - | 5000 |
| Franklin India Short Term Income Plan | 5 Star |
Growth - ₹4,054.9528
Dividend Weekly - ₹1,072.8253 |
8.80% | 8.74% | 8.89% | 8.76% | 5000 |
| Baroda Short Term Bond Fund | 5 Star |
Growth - ₹20.4743
Dividend Quarterly - ₹10.3785 |
9.11% | 8.22% | 8.56% | - | 5000 |
| ICICI Prudential Short Term Fund | 3 Star |
Growth - ₹39.8179
Dividend Monthly - ₹12.2595 |
9.09% | 7.55% | 8.44% | 7.98% | 5000 |
| Axis Short Term Fund | 4 Star | 9.36% | 7.52% | 8.14% | - | 5000 |
Best Banking & PSU Debt Funds You Can Choose from
These funds invest in bonds and other debt instruments issued by banks and public sector undertakings (PSUs). Here’s a list of top-performing funds in this category.
| Banking & PSU Debt Funds | Rating | Net Asset Value (NAV) | 1-year Return | 3-year Return | 5-year Return | 10-year Return | Minimum Investment Needed (In ₹) |
|---|---|---|---|---|---|---|---|
| Aditya Birla Sun Life Banking & PSU Debt Fund | 4 Star |
Growth - ₹247.8973
Dividend Quarterly - ₹105.7403 |
10.71% | 8.19% | 9.20% | 8.86% | 1000 |
| DSP Banking & PSU Debt Fund | 3 Star |
Growth - ₹16.2523
Dividend Weekly - ₹10.1916 |
9.87% | 7.63% | 8.41% | - | 500 |
| ICICI Prudential Banking & PSU Debt Fund | 3 Star |
Growth - ₹22.069
Dividend Weekly - ₹10.2652 |
9.67% | 7.98% | 8.82% | - | 5000 |
| Axis Banking & PSU Debt Fund | 5 Star |
Growth - ₹1,798.2064
Dividend Weekly - ₹1,018.8722 |
10.58% | 8.19% | 8.40% | - | 5000 |
| Franklin India Banking & PSU Debt Fund | 4 Star |
Growth - ₹15.3516
Dividend - ₹10.6036 |
11.52% | 8.08% | 8.44% | - | 5000 |
Note – The data is sourced from Value Research as on July 17, 2019. The data pertains to the regular plan of the schemes shown above.
Disclaimer – “Mutual fund investments are subject to market risks. Please read the scheme document carefully before investing”.