Mutual funds come in various flavors as I am sure you’d already know by now.

While there are funds that are safe and low risk, there are ones that are high risk also. Certain people wish to take risk and get much higher returns.

One strategy used by people wishing to get very high returns is to invest for a long duration – that reduces exposure to volatility.

5 High-Risk High Return Funds

Here is a list of high-risk high returns funds that are top rated on Groww. They are a mix of small-cap, mid-cap, and sector funds that show immense potential for the future.

Mutual Funds - At a Glance
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
L&T Midcap Fund Direct-Growth -8% 9.85% 14.33% 0.83% 19% Equity
(Mid Cap)
High
Mirae Asset Emerging Bluechip Fund Direct-Growth 9.42% 15.26% 19.74% 0.79% 34% Equity
(Large & Mid Cap)
Moderately High
UTI Transportation and Logistics Fund Direct-Growth -27.04% -2.08% 6.92% 1.31% 7% Equity
(Sectoral/Thematic)
High
HDFC Small Cap Fund Direct- Growth -6.26% 12.31% 14.62% 0.84% 37% Equity
(Small Cap)
Moderately High
L&T Emerging Businesses Fund Direct-Growth -11.03% 11.1% 14.03% 0.88% 26% Equity
(Small Cap)
High

1. L&T Midcap Fund

This mid-cap fund has consistently shown good performance over a 5 year period with nearly 30% per annum returns over that period.

The minimum SIP amount for this fund is Rs 500 which makes it very accessible too.

Allocation

2. Mirae Asset Emerging Bluechip Fund

This is another great mid-cap fund. Over a period of 5 years, it gave returns in excess of 30% – nearly 31%.

In the last 1 year, its returns were more than 40% which is a very good performing number for a mid-cap fund.

The minimum SIP amount for this fund is Rs 1000.

Allocation

3. UTI Transportation and Logistics Fund

This is, as the name suggests, as sector fund.

It aims to invest in the logistics sector. In the last 1 year, it gave returns in excess of 28% and over the last 5 years, it’s been giving returns in excess of 31% per annum.

Such a performance makes this fund an incredibly consistent fund – which is the hallmark of a good fund.

The minimum SIP amount for this fund is Rs 500.

Allocation

Avoid the biggest lie of Mutual Funds – Stop taking risks!

4. HDFC Small Cap

This small-cap fund is easily one of the best performing small-cap funds in the market today.

In the last 1 year, it managed to give an incredible return of nearly 55%. Even over the last 3 years, it gave around 21% per annum.

The minimum SIP amount is Rs 500.

Allocation

5. L&T Emerging Businesses Fund

Again, another small-cap fund that has been performing exceptionally well.

In the last 1 year, it has managed to give returns in excess of 54%. Even over 3 years, it has given returns in excess of 25% per annum.

The minimum SIP amount for this fund too is Rs 500.

Allocation

Investment Strategy

Now, given these 5 high potential funds, we need to discuss how you should invest in them,

First of all, you should invest some money in safer investments like debt funds. Here’s a list of the best debt funds you can invest in 2018.

And then, with the remaining, you can invest in equity. Even within your equity investments, you should invest some in safer equity investments like large-cap funds. Here’s a list of some of the best large-cap funds in 2018.

How much of your money should go into debt, large-cap, and riskier funds depends completely on your financial status.

Now, with those aside, you are left with money to invest in high growth potential riskier funds.

With riskier funds, it makes sense to spread risk.

What Is Risk Profile? How to Asses Risk? Here’s All You Need to Know About Risk Appetite

So, instead of investing mainly in one fund, invest in multiple high-risk funds.

There, you can invest in all 5 of the above-mentioned funds putting equal amounts of money in each.

This is why the above funds are a part of one portfolio on Groww – High Risk High Returns.

high risk high returns growwWe at Groww have come out with a list of Best mutual funds to invest in 2019

All the funds mentioned in this High-Risk High Returns portfolio are a part of this list of 30 top funds. Thus proving that these funds are really top funds in their respective categories.

Happy investing!

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

 

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