SWITCH TO DIRECTHELPMUTUAL FUNDS
0% COMMISSION ON GROWW
Home>Mutual Funds>High Risk Mutual Funds

Best High Risk Mutual Funds

High-risk mutual funds have a significant risk-reward dynamic when compared to most other mutual funds. In this context, risk denotes the probability of a person losing their investments. Low, moderate, and high are comparative degrees of this probability playing out, defined by SEBI’s risk-o-meter. To minimise the adverse impact of investing in mutual funds with substantial risks, seasoned investors aim for the best high risk mutual funds.

Why invest with Groww?

— Registered with SEBI, AMFI & BSE

— Paperless sign up on web & app

— Expert recommendations

— ZERO fees !

Sign Up

Top 10 High Risk Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
HDFC Dynamic PE Ratio FoF Fund
OtherHigh26.4%5₹42
ICICI Prudential Asset Allocator Fund
OtherHigh23.4%5₹21,437
SBI Conservative Hybrid Fund
HybridHigh15.3%5₹9,538
ICICI Prudential Bharat Consumption Fund
EquityHigh42.9%4₹2,239
Franklin India Dynamic Asset Allocation Fund
OtherHigh29.1%4₹1,301
Sundaram Equity Hybrid Fund
HybridHigh30.1%4₹1,954
Tata Balanced Advantage Fund
HybridHigh24.4%4₹8,729
ICICI Prudential Balanced Advantage Fund
HybridHigh22.5%4₹55,229
Sundaram Balanced Advantage Fund
HybridHigh23.6%4₹1,519
SBI Retirement Benefit Fund
Solution OrientedHigh17.4%4₹254
View All

Features of High Risk Mutual Fund

These are the salient features of the best high risk mutual funds – 

Type: There can be various categories of high-risk MFs – balanced advantage schemes, credit risk fund schemes, equity hybrid fund schemes, and the likes. 

Asset allocation: These High risk funds predominantly invest in stocks or bonds of developing or growing companies. The specific asset allocation depends on the type of high-risk mutual fund. 

Risk-reward ratio: High-risk mutual funds involve significant volatility, as the classification suggests. However, the best high risk mutual funds 2023 also offer sizeable returns.

Taxability

The treatment is carried out as per the concerned fund’s asset allocation. 

Long-term Capital Gains Tax: A 10% tax rate is applicable on gains exceeding Rs.1 lakh if the fund units are sold after one year. It only applies to schemes investing a more significant share in equity and equity-related instruments. In case a high-risk fund invests predominantly in debt securities, it’ll be treated as a debt fund for taxation. Thereby, gains realised after 3 years will be liable for a 20% tax + indexation benefits. 

Short-term Capital Gains Tax: Capital gains on equity-oriented high-risk funds held for less than a year attract taxation @15% + cess, notwithstanding the amount. Conversely, gains realised from debt-based funds within 36 months of investment are taxed per an investor’s income slab. For example, suppose an investor belongs to the 15% tax bracket. Herein, any gains from a debt high risk fund are added to their income and taxed @15%.

TDS: Dividend pay-outs of over Rs.5000 from equity-based high-risk mutual funds attract a 10% TDS. Tax deducted at source does not apply to debt-based funds.

Who Are These Funds Suited For?

High-risk funds are most suitable for investors with in-depth knowledge about the market and a fair understanding of macroeconomic trends. In addition, investors who have a strong risk appetite and do not mind exposing their portfolio to volatility to generate higher earnings can consider the best high risk mutual funds

Investors shall also note that high-risk mutual funds usually offer more significant returns over a long time horizon, extending up to 10 years. That’s because the underlying bonds and stocks are mostly of companies in their growth phase. Usually, investors with an aggressive but patient investment approach may find this type of mutual fund suitable.  

Nonetheless, investors must weigh in a few things before parking their money in the best high-risk mutual funds

Investment goal: Investors must identify their long-term financial goals and set realistic benchmark before selecting a fund. 

Risk profile: The capacity to take risk differs among investors. One should consider the scale of losses one can digest before investing in high-risk mutual funds. Accordingly, investors should decide the investment quantum. 

Fund’s performance: Gaining an insight into a fund’s past performance often proves effective in decision-making. Investors can check a fund’s historical returns and compare them with other peer options for better understanding.

Expense ratio: Usually, the expense ratio varies among Asset Management Companies. Since the expense ratio impacts returns, investors must make it a point to find out about it before investing. 

Direct and regular plan: The best high risk mutual funds are available as direct and regular plans. Fund houses offer the former without the involvement of intermediaries and at a lower expense ratio. Conversely, to invest in regular plans, investors have to approach third-party agents like brokers, distributors, etc. Thus, regular plans involve a higher NAV and report lower NAVs. 

Major Advantages

These are among the top benefits of investing in the best high risk mutual funds 2022

Higher returns: The best high risk mutual funds are adept at generating comparatively higher returns than most other investment options. Debt-based funds invest in low-rated bonds, which can generate significant returns. Similarly, equity-based funds allocate their assets to stocks of growing companies, improving the chances of generating greater returns than large-cap funds. 

Long-term capital appreciation: High risk mutual fund performs best over 5-7 years, which is why they are considered suitable for long-term financial goals. Also, these funds are adept at generating inflation-adjusted returns. 

Tax benefits: Investors belonging to higher income tax slabs can enjoy more tax-efficient returns compared to bank fixed deposits. 

Opportunity to beat benchmarks: In a positive market cycle, these funds can outperform benchmarks.

Investment modes: Investors can invest in the top high risk mutual funds in two ways – Systematic Investment Plan or lump sum. In SIP, investors have the flexibility to invest a fixed amount in the fund scheme as per their financial standing. In the lump-sum investment method, individuals need to invest a specific amount at once. The minimum investment sum is Rs.500, mostly in the case of SIP. It may be Rs.1000 in the case of a lump sum.

How long does it take to start investing in high risk mutual funds if I do not have a KYC?

It is not possible for any investor to start investing in mutual funds without having completed the KYC process. Under the Prevention of Money Laundering Act (PMLA), Know Your Customer (KYC) norms have been mandated to track the legality of funds used in an investment. KYC is a one-time process which every first-time mutual fund investor needs to follow, to be able to invest in a mutual fund. KYC process on Groww can be completed in 2-3 days. KYC can be completed online with the help of E-KYC or electronic KYC. E-KYC Aadhar (based on OTP) : Investor can use online KYC facility using just the aadhar card number and PAN number, by visiting the website and following the easy process. After entering relevant details like aadhar and PAN number, investor will receive an OTP and KYC will be completed instantly. However, one can invest only up to ₹50,000 per fund house per year under this method.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

HDFC Dynamic PE Ratio FoF Direct Growth

Fund Performance: The HDFC Dynamic PE Ratio FoF Fund has given 16.91% annualized returns in the past three years and 14.74% in the last 5 years. The HDFC Dynamic PE Ratio FoF Fund comes under the Other category of HDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in HDFC Dynamic PE Ratio FoF Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹42Cr
1Y Returns26.4%

ICICI Prudential Asset Allocator Fund (FOF) Direct Growth

Fund Performance: The ICICI Prudential Asset Allocator Fund has given 15.01% annualized returns in the past three years and 14.86% in the last 5 years. The ICICI Prudential Asset Allocator Fund comes under the Other category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Asset Allocator Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹21,437Cr
1Y Returns23.4%

SBI Conservative Hybrid Fund Direct Growth

Fund Performance: The SBI Conservative Hybrid Fund has given 10.98% annualized returns in the past three years and 10.81% in the last 5 years. The SBI Conservative Hybrid Fund comes under the Hybrid category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Conservative Hybrid Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹9,538Cr
1Y Returns15.3%

ICICI Prudential Bharat Consumption Fund Direct Growth

Fund Performance: The ICICI Prudential Bharat Consumption Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Bharat Consumption Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹2,239Cr
1Y Returns42.9%

Franklin India Dynamic Asset Allocation Fund of Funds Direct Growth

Fund Performance: The Franklin India Dynamic Asset Allocation Fund has given 19.76% annualized returns in the past three years and 12.7% in the last 5 years. The Franklin India Dynamic Asset Allocation Fund comes under the Other category of Franklin Templeton Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Franklin India Dynamic Asset Allocation Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹1,301Cr
1Y Returns29.1%

Sundaram Equity Hybrid Fund Direct Growth

Fund Performance: The Sundaram Equity Hybrid Fund has given 17.11% annualized returns in the past three years and 15.7% in the last 5 years. The Sundaram Equity Hybrid Fund comes under the Hybrid category of Sundaram Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Sundaram Equity Hybrid Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹1,954Cr
1Y Returns30.1%

Tata Balanced Advantage Fund Direct Growth

Fund Performance: The Tata Balanced Advantage Fund has given 14.36% annualized returns in the past three years and 14.63% in the last 5 years. The Tata Balanced Advantage Fund comes under the Hybrid category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Balanced Advantage Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹8,729Cr
1Y Returns24.4%

ICICI Prudential Balanced Advantage Direct Growth

Fund Performance: The ICICI Prudential Balanced Advantage Fund has given 13.62% annualized returns in the past three years and 13.23% in the last 5 years. The ICICI Prudential Balanced Advantage Fund comes under the Hybrid category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Balanced Advantage Fund via lump sum is ₹500 and via SIP is ₹100.

Min Investment Amt₹500
AUM₹55,229Cr
1Y Returns22.5%

Sundaram Balanced Advantage Fund Direct Growth

Fund Performance: The Sundaram Balanced Advantage Fund has given 13.09% annualized returns in the past three years and 13.44% in the last 5 years. The Sundaram Balanced Advantage Fund comes under the Hybrid category of Sundaram Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Sundaram Balanced Advantage Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹1,519Cr
1Y Returns23.6%

SBI Retirement Benefit Fund Conservative Hybrid Plan Direct Growth

Fund Performance: The SBI Retirement Benefit Fund comes under the Solution Oriented category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Retirement Benefit Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹254Cr
1Y Returns17.4%

Explore all Mutual Funds on Groww

Explore Mutual Funds
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 4.8.0
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  IDFC |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ