Best High Risk Mutual Funds
All mutual fund schemes in India are divided into either high, moderately high, moderate, moderately low, and low risk.
High risk mutual funds as the name suggest, carry a high degree of risk. While risk is a subjective term and may differ from one investor to another, risk can largely be considered as the probability of the investment losing its value permanently. So, if you are planning to invest in high risk funds, it is advisable to opt for only the best high risk mutual funds. The high risk mutual funds are capable of delivering higher returns as compared to other types of mutual funds.
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Top 10 High Risk Mutual Funds
| Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) | |
|---|---|---|---|---|---|---|
| Kotak Asset Allocator Fund | Other | High | 39.7% | 5star | ₹304 | |
| Edelweiss Balanced Advantage Fund | Hybrid | High | 33.5% | 5star | ₹4,309 | |
| SBI Multi Asset Allocation Fund | Hybrid | High | 18.6% | 5star | ₹393 | |
| Principal Equity Savings Fund | Hybrid | High | 26.4% | 5star | ₹69 | |
| HDFC Credit Risk Debt Fund | Debt | High | 10.2% | 5star | ₹7,784 | |
| ICICI Prudential Credit Risk Fund | Debt | High | 8.6% | 5star | ₹7,626 | |
| Sundaram Equity Hybrid Fund | Hybrid | High | 41.3% | 4star | ₹1,791 | |
| HDFC Dynamic PE Ratio Fund of Funds | Other | High | 36.8% | 4star | ₹21 | |
| Aditya Birla Sun Life Balanced Advantage Fund | Hybrid | High | 31.5% | 4star | ₹3,969 | |
| Nippon India Balanced Advantage Fund | Hybrid | High | 32.1% | 4star | ₹3,722 | |
| View All Top 10 High Risk Mutual Funds |
Features of High Risk Mutual Fund
These mutual funds are perfectly suited for aggressive investors seeking higher than average returns by exposing their capital to high risks. The best high risk funds are capable of delivering returns higher than the benchmark by taking comparatively higher risks. The best low risk high return mutual fundsare also aimed at investors seeking to diversify their portfolio.
The best high risk funds in India enable investors to make investments in sectoral schemes that invest in particular sectors. This ensures that investors who anticipate growth in a particular sector can earn huge returns by investing in these sectors. Some of the best high risk mutual funds allow investors to make investments in upcoming sectors such as renewable energy or natural resources which is difficult for investors to do on their own.
Taxability
High risk mutual funds invest in equity and equity-oriented securities and receive the corresponding tax treatment. If the funds are held for a period of less than 12 months, a short-term capital gain tax of 15% is levied. However, if the funds are held for a period of more than 12 months, a long-term capital gain tax of 10% is applicable if the earnings are more than 1 lakh INR.
Who Are These Funds Suited For?
High risk mutual funds are suitable for savvy investors who understand the market and seek to earn higher returns by taking comparatively higher risks. The best high risk funds are capable of generating higher returns. Aggressive investors who can afford to take risks and even bear losses should invest in high risk mutual funds.
Even the best high risk mutual funds are not suited for investors who are risk-averse such as retired individuals, pensioners, etc. High risk mutual funds are ideal for investors with long-term investment horizon as higher volatility may hamper short and medium-term returns. So, the best high risk funds in India are certainly suitable for young investors who can afford to be aggressive and have a long-term investment horizon.
Major Advantages
The best high risk mutual funds can deliver returns that are far superior to any other schemes. While the risk associated is certainly high, the returns that you can earn are equally higher. This makes high risk mutual funds a scheme of choice for investors seeking higher returns and capable of taking risks. The best high risk mutual funds in India are capable of enabling the investor create wealth over a long-term investment horizon.
By investing in the best high risk funds, investors can also earn dividend income. These funds also enable new investors to expose their capital to equity and equity-related instruments without any hassles. Fund houses pick the best high risk mutual funds after doing thorough research, ensuring that the possibility of positive returns is comparatively higher. High risk mutual funds can also be used as instruments to diversify the portfolio.
Each type of mutual funds come with their own sets of pros and cons. It is essential for you as an investor to understand your own risk-taking abilities and your investment goals. It is always advisable to understand the risk involved before making any investment. If unsure, you can always seek the help of a financial advisor before investing.
Let's have a closer look
Now let us jump and check about these top 10 mutual fund schemes.
Kotak Asset Allocator Fund Direct Growth
Fund Performance: This fund has given 19.33% annualized returns in the last three years. In the last year, its returns were 39.74%. It has continually hit its benchmark in the Other segment.
Why to invest: It is one of the most remarkable Other mutual funds in India. This fund has constantly outperformed other similar funds, providing 39.74% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹304Cr |
| 1Y Returns | 39.7% |
Edelweiss Balanced Advantage Fund Direct Growth
Fund Performance: This fund has given 14.75% annualized returns in the last three years. In the last year, its returns were 33.52%. It has continually hit its benchmark in the Hybrid segment.
Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 33.52% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹4,309Cr |
| 1Y Returns | 33.5% |
SBI Multi Asset Allocation Fund Direct Growth
Fund Performance: This fund has given 12.58% annualized returns in the last three years. In the last year, its returns were 18.55%. It has continually hit its benchmark in the Hybrid segment.
Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 18.55% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹393Cr |
| 1Y Returns | 18.6% |
Principal Equity Savings Fund Direct Growth
Fund Performance: This fund has given 11.77% annualized returns in the last three years. In the last year, its returns were 26.36%. It has continually hit its benchmark in the Hybrid segment.
Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 26.36% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹69Cr |
| 1Y Returns | 26.4% |
HDFC Credit Risk Debt Fund Direct Growth
Fund Performance: This fund has given 9.53% annualized returns in the last three years. In the last year, its returns were 10.16%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 10.16% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹7,784Cr |
| 1Y Returns | 10.2% |
ICICI Prudential Credit Risk Fund Direct Plan Growth
Fund Performance: This fund has given 9.41% annualized returns in the last three years. In the last year, its returns were 8.57%. It has continually hit its benchmark in the Debt segment.
Why to invest: It is one of the most remarkable Debt mutual funds in India. This fund has constantly outperformed other similar funds, providing 8.57% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹7,626Cr |
| 1Y Returns | 8.6% |
Sundaram Equity Hybrid Fund Direct Growth
Fund Performance: This fund has given 13.98% annualized returns in the last three years. In the last year, its returns were 41.25%. It has continually hit its benchmark in the Hybrid segment.
Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 41.25% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹1,791Cr |
| 1Y Returns | 41.3% |
HDFC Dynamic PE Ratio Fund of Funds Direct Growth
Fund Performance: This fund has given 13.53% annualized returns in the last three years. In the last year, its returns were 36.83%. It has continually hit its benchmark in the Other segment.
Why to invest: It is one of the most remarkable Other mutual funds in India. This fund has constantly outperformed other similar funds, providing 36.83% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹21Cr |
| 1Y Returns | 36.8% |
Aditya Birla Sun Life Balanced Advantage Fund Direct Growth
Fund Performance: This fund has given 12.99% annualized returns in the last three years. In the last year, its returns were 31.49%. It has continually hit its benchmark in the Hybrid segment.
Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 31.49% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹3,969Cr |
| 1Y Returns | 31.5% |
Nippon India Balanced Advantage Fund Direct Growth
Fund Performance: This fund has given 12.52% annualized returns in the last three years. In the last year, its returns were 32.09%. It has continually hit its benchmark in the Hybrid segment.
Why to invest: It is one of the most remarkable Hybrid mutual funds in India. This fund has constantly outperformed other similar funds, providing 32.09% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹100. Minimum SIP investment amount required for this scheme is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹3,722Cr |
| 1Y Returns | 32.1% |
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