Mutual fund investing has increased exponentially in recent years.

However, a lot of investors still wonder whether mutual funds are safe or harbor any schemes for conservative investors?

The answer is yes, there are various options even for orthodox investors.

 Best 5 mutual funds to invest in for 1 year – 2019

6 Best Mutual Funds for Conservative Investors 2019 - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Reliance Liquid Fund - Direct - Growth 7.67% 7.23% 7.76% 0.15% NA Debt
(Liquid)
Low
Kotak Low Duration Fund - Direct - Growth 8.6% 8.45% 9.03% 0.32% NA Debt
(Low Duration)
Moderate
Aditya Birla Sun Life Corporate Bond Fund - Direct - Growth 9.97% 8.23% 8.75% 0.27% NA Debt
(Corporate Bond)
Moderately Low
Franklin India Ultra Short Bond Fund - Super Institutional Plan - Direct Plan 9.83% 9.01% 9.31% 0.44% NA Debt
(Ultra Short Duration)
Moderate
SBI Bluechip Fund - Direct - Growth 5.11% 11.43% 13.75% 1.08% 73% Equity
(Large Cap)
Moderately High
Axis Bluechip Fund - Direct - Growth 10.95% 16.56% 13.24% 0.87% 41% Equity
(Large Cap)
Moderately High

What Kind of Mutual Funds Should Conservative Investors Look For?

For investors who have a conservative style of investment, the time period of investment is generally short.

The liquidity needed is generally high and this makes them prone to market volatility. We often get psychologically moved when the markets swing downwards or even if there is a low return in a short frame of time.

In this situation, what are your best options?

Here is when debt and hybrid funds come to your rescue. Debt funds are the safest category as they invest in government securities. Hybrid funds, on the other hand, invest in both equities and debt, so here you get the best of both worlds, literally!

Now, if an investor wants to invest in equities, but at the same time does not want to take a large amount of risk, then large cap funds should be the go-to option.

Although the investor should keep in mind that if he/she wants to invest in large-cap funds, the suggested investment duration is atleast 4-5 years.

Let’s discuss some of the best funds for conservative investors.

6 Best Mutual Funds for Conservative Investors 2019 – Details

1. Reliance Liquid Fund

Currently, Reliance Liquid Fund is one of the most popular liquid funds in the market and aims to generate optimal returns consistent with moderate risk and high liquidity. This is easily one of the best liquid funds in 2019.

Key Information

Rating by Groww 4 star
AUM (Fund Size) ₹44,993 Cr
Minimum SIP ₹100
Performance w.r.t its Benchmark CRISIL Liquid
Age of the fund 13 years old
Expense Ratio 0.15%

Holdings

2.Kotak Low Duration Fund – Direct – Growth

If we are in a tussle because of the market going southwards and would like to garner risk-free returns, Kotak Low Duration Fund is one of the best we can look for.

The expense ratio of this fund is as low as 0.31%.

Key Information

Rating by Groww 5 star
AUM (Fund Size) ₹2,346.2 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark NIFTY Low Duration Debt TRI
Age of the fund 10 years old
Expense Ratio 0.31%

Holding Analysis

3. Aditya Birla Sun Life Corporate Bond Fund – Direct – Growth

This fund was launched on January 1st 2013. It has been rated as a 5-star fund by Groww and harbors an expense ratio of 0.26%. This fund has given a return of 8.67% since launch.

Key Information

Rating by Groww 4 star
AUM (Fund Size) ₹15,234 Cr
Minimum SIP ₹100
Performance w.r.t its Benchmark CRISIL Short-Term Bond
Age of the fund 15 years old
Expense Ratio 0.26%

Holding

4.Franklin India Ultra-Short Bond Fund – Direct – Growth

This fund was launched on 1st January 2013 and this fund also has a 5-star rating by Groww. This fund has an expense ratio of 0.34% which is considered

Key Information

Rating by Groww 5 star
AUM (Fund Size) ₹16,095 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark CRISIL Liquid
Age of the fund 12 years old
Expense Ratio 0.35%

Holding

5.Axis Bluechip Fund – Direct – Growth

This is a Large Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 16.55% since its launch.

Key Information

Rating by Groww 5 star
AUM (Fund Size) ₹2,927 Cr
Minimum SIP ₹1,000
Performance w.r.t its Benchmark NIFTY 50 Total Return
Age of the fund 10 years old
Expense Ratio 0.91%

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

Holding

6.SBI Bluechip Fund – Direct- Growth

This is a Large Cap Equity Oriented Mutual Fund launched on January 1, 2013. It is a fund with moderately high risk and has given a return of 18.03% since its launch.

It invests in the top 100 companies in terms of market capitalization, with the flexibility to invest up to 20% in mid-cap stocks. This fund is one of the most popular large-cap funds available in the market.

Key Information

Rating by Groww 4 star
AUM (Fund Size) ₹19,097 Cr
Minimum SIP ₹500
Performance w.r.t its Benchmark BSE S&P 100 TRI
Age of the fund 5 years old
Expense Ratio 1.35 %

Holding

It invests in the top 100 companies in terms of market capitalization, with the flexibility to invest up to 20% in mid-cap stocks. This fund is one of the most popular large-cap funds available in the market.

Conclusion

Most financial advisors recommend the above-mentioned schemes for investors, but the main part is for an investor to understand whether these plans co-inside with their risk appetite and investment horizon.

As Warren Buffet says “Risk comes from not knowing what you are doing.”

We need to realize the opportunity with low risk.

30 Best Mutual Funds to Invest in 2019: Groww 30

Quiz for the Conservative Investor

Here is a short quiz based on the article!

Happy Investing!

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