Most investors have a notion that mutual fund is a highly risky investment platform.

If you are one of them, let us break that stereotype for you. In fact, there are various types of mutual funds, starting from low risk funds to very high-risk funds. The returns generated is obviously, according to the risk factor.

The mutual fund market is like an ice-cream shop. There is a flavor for everyone! Keeping this in mind, in this blog, we will talk about the top 10 mutual funds with moderate risk in 2019.

10 Best Mutual Funds with Moderate Risk - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Aditya Birla Sun Life Banking & PSU Debt Fund Direct Growth 11.12% 8.18% 9.48% 0.35% NA Debt
(Banking & PSU)
Moderate
SBI Credit Risk Fund Direct Growth 7.39% 7.64% 9.11% 0.94% NA Debt
(Credit Risk)
Moderate
Franklin India Dynamic Accrual Direct Plan Growth 9.42% 9.4% 10.4% 0.79% NA Debt
(Dynamic)
Moderate
Franklin India Low Duration Direct Plan Growth 8.81% 8.84% 9.36% 0.49% NA Debt
(Low Duration)
Moderate
ICICI Prudential Bond Fund Direct Plan Growth 11.51% 7.74% 9.43% 0.55% NA Debt
(Medium to Long Duration)
Moderate
Franklin India Ultra Short Bond Fund Super Institutional Direct Growth 9.9% 8.94% 9.32% 0.42% NA Debt
(Ultra Short Duration)
Moderate
Axis Arbitrage Fund Direct Growth 7.28% 7.02% 7.36% 0.27% 623% Hybrid
(Arbitrage)
Moderate
ICICI Prudential Balanced Advantage Direct Growth 2.63% 8.2% 9.91% 1.27% 486% Hybrid
(Balanced Advantage)
Moderate
ICICI Prudential Regular Savings Fund Direct Growth 6.64% 8.8% 10.43% 1.35% 116% Hybrid
(Conservative)
Moderately High
UTI Banking & PSU Debt Fund Direct Growth 1.13% 5.26% 6.97% 0.24% NA Equity
(Sectoral/Thematic)
Moderate

10 Best Mutual Funds with Moderate Risk – Details

1.Aditya Birla Sun Life Banking & PSU Debt Fund

Objective

The fund seeks to generate income and capital appreciation by investing full corpus in a diversified portfolio of debt and money market securities. The aim is to make returns by investing in securities that has a low level of interest rate risk.

Performance

The fund has outperformed its benchmark and peers over the multi-trailing period (Three years and five years). Also, the fund has a lower expense ratio which provides superior returns when compared to peers.

Having said that the risk profile is higher when compared to the benchmark and has been facing turbulence from the past year.

Fund Manager

Maneesh Dangi, Kaustubh Gupta

2. SBI Credit Risk Fund

Objective

The fund seeks to provide investors with an opportunity to earn returns that would be higher than the returns offered by comparable investments in debt and money market securities.

The plan endeavors to mitigate interest rate risk and seeks to generate regular returns.

Performance

Why Invest in SBI Credit Risk Fund?

The fund has outperformed its benchmark and peers over the multi-trailing period (three years and five years) and have a better risk-adjusted return when compared to the category average.

However, the fund has a higher risk when compared to the benchmark and has been underperforming the benchmark over the past year.

Fund Manager

Lokesh Mallya, Mansi Sajeja

3.Franklin India Dynamic Accrual Fund

Objective

To generate a steady stream of income either by way of regular dividends or by capital appreciation.

Performance

The fund has outperformed its benchmark and peers over the multi-trailing period (three years and five years) and has a better risk-adjusted return when compared to the category average.

Also, the fund has a lower expense ratio which results in superior returns.

However, the fund is new in the category, and it has been in the market for less than five years and comes with higher risk when compared to the benchmark.

Fund Manager

Sachin Padwal-Desai, Santosh Kamath, Umesh Sharma

4. Franklin India Low Duration Fund

Objective

To generate regular income for investors by investing in debt instruments.

Performance

Why Invest in Franklin India Low Duration Fund?

The fund has outperformed its benchmark and peers over the multi-trailing period (one year, three years and five years) and have a better risk-adjusted return when compared to the category average.

Also, the fund has a lower expense ratio which results in superior returns.

However, the fund comes with higher risk when compared to the benchmark.

Fund Manager

Santosh Kamath, Kunal Agrawal

5..ICICI Prudential Bond Fund

Objective

The open-ended income fund intends to generate income by investing in a range of debt and money market instruments of various credit rating and maturity.

The approach is followed to maximize income while maintaining an optimum balance of yield, safety, and liquidity.

Performance

Why Invest in ICICI Prudential Bond Fund?

The fund has outperformed its benchmark and peers over the multi-trailing period (Three years and five years). Also, the fund has a lower expense ratio which provides superior returns when compared to peers.

Having said that the risk profile is higher when compared to the benchmark and has been facing turbulence from the past year.

Fund Manager

Manish Banthia

6. Franklin India Ultra-Short Bond Fund

Objective

The fund seeks to provide a combination of regular income and high liquidity by investing in a mix of short term debt and money market instruments.

Performance

The fund has outperformed its benchmark and peers over the multi-trailing period (one year, three years and five years) and has a better risk-adjusted return when compared to the category average.

Also, the fund has a lower risk when compared to the benchmark and comes with low expense ratio which helps in generating superior returns.

Fund Manager

Sachin Padwal-Desai, Pallab Roy

7. Axis Enhanced Arbitrage Fund

Objective

The fund seeks to generate income through low volatility absolute return strategies that take advantage of opportunities in the cash and the derivative segments of equity markets, including, the arbitrage opportunities available within the derivative segment, by using other derivative based strategies.

However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns.

Performance

The fund has outperformed its benchmark and peers over the multi-trailing period (one year, and three years) and has a lower risk when compared to the benchmark. It also comes with a low expense ratio which helps in generating superior returns.

However, the risk-adjusted return is lower when compared to the category, and the fund is comparatively new and has been there in the industry for less than three years.

Fund Manager

Ashwin Patni, Devang Shah

8. ICICI Prudential Balanced Advantage

Objective

The investment objective of the scheme is to provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities, and pure equity investments.

Performance

The fund has outperformed its benchmark and peers over the multi-trailing period (Three years and five years).

Having said that the risk profile is higher when compared to the benchmark and has been facing turbulence from the past year.

Also, the asset under management (AUM) is more than 20000 Crs, and returns tend to go low once the AUM exceeds a certain amount.

Fund Manager

S Naren, Rajat Chandak, Manish Banthia, Ihab Dalwai

9. ICICI Prudential Regular Savings Fund

Objective

The fund seeks to generate regular income by investing in debt and money market instruments.

As a secondary objective, the fund also aims to create long-term capital appreciation from the portion of equity investments under the scheme.

Performance

Why Invest in ICICI Prudential Regular Savings Fund?

The fund has outperformed its benchmark and peers over the multi-trailing period (Three years and five years).
Having said that the risk profile is higher when compared to the benchmark and has been facing turbulence from the past year.

Fund Manager

Rajat Chandak, Manish Banthia

10. UTI Banking & Financial Services

Objective

The fund seeks to generate steady and reasonable income, with low risk and high liquidity from a portfolio of debt & money market securities issued by banks and public sector undertakings (PSUs).

Performance

Why Invest in UTI Banking & Financial Services?

The fund has outperformed its benchmark and peers over the multi-trailing period (Three years) and has higher risk-adjusted returns.

The fund comes with a low expense ratio thereby adding to returns and has zero exit load which enables an investor to exit without any charges.

Having said that the risk profile is higher when compared to the benchmark and has been facing turbulence from the past year.

Fund Manager

Sudhir Agrawal

Conclusion

So, these were our top picks of the best mutual funds with moderate risk, but always remember to keep in mind certain aspects, when investing in a mutual fund.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww