Best Low Risk Mutual Funds

Mutual Funds are a type of investment that creates a pool of money from multiple investors and invest in stocks like government bonds, debentures, equity, money market instruments, etc. Depending on the portfolio of each fund, and its aggregating performance, it can be classified as high risk or low-risk mutual fund.

The best low risk Mutual Funds come with higher chances of assured return, as they invest in government bonds of infrastructure, energy, real estate, etc. They can either match or stay ahead of inflation thanks to their risk-free investment portfolio.

The returns earned from the best low risk funds are often moderate, but steady. However, in the long run, low risk Mutual Funds are more likely to offer superior returns than any other type of investment option. Currently, it offers the highest return at around 15% and has maintained an average of just over 16% returns throughout the last 7 years.

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Top 10 Low Risk Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Indiabulls Short Term FundDebtLow9.2%5star68
Aditya Birla Sun Life Money Manager FundDebtLow8.9%5star12,746
Aditya Birla Sun Life Money Manager FundDebtLow8.9%5star12,746
Aditya Birla Sun Life Money Manager FundDebtLow8.9%5star12,746
Aditya Birla Sun Life Money Manager FundDebtLow8.8%5star12,746
Mahindra Liquid FundDebtLow7.5%5star3,300
Mahindra Liquid FundDebtLow7.5%5star3,300
Mahindra Liquid FundDebtLow7.5%5star3,300
Franklin India Treasury Management AccountDebtLow7.5%5star12,029
Franklin India Treasury Management AccountDebtLow7.5%5star12,029
View All Top 10 Low Risk Mutual Funds

Features of Low Risk Mutual Fund

Low risk Mutual Funds are an ideal financial vessel to preserve capital and increase income through timely liquid investments. It can be used as an alternative source of income. Prospective investors can also invest in these types of funds to gain confidence while investing.

These mutual funds invest in different securities, based on the previous performance and credit ratings. Usually, the funds are invested in high credit quality instruments to generate assured returns. It also ensures that the investment stays in less volatile sector compared to equity funds.

The investment horizon usually extends between 3 months and 3 years for short-term schemes, and 3 to 5 years for medium-term options. Longer the tenor, higher is the chances of assured returns.

Taxability

Mutual Funds are considered as a financial tool to generate a capital gain, which is the primary reason why it falls under the Income Tax Act of India. The tax levied on the investments primarily depends on the holding period, or the duration for which you invest in that particular portfolio.

Usually, the best low risk Mutual Funds 2019 can be both short, and long-term capital investment, attracting taxes depending on the investment’s holding period. If the investment is for up to 36 months, the tax is calculated based on the income tax slab rate of that particular investor. If the investment period is longer than 36 months, a flat 20% tax after indexation will be applicable.

Indexation is a method which factors in the rise in inflation from the time of acquiring the investment to the sale of that particular unit. It inflates the purchase price of the debt fund to lower its loss in capital gain. However, they might fall under short-term capital gains tax (SCGT) according to the particular income tax act applicable to the investor.

Who Are These Funds Suited For?

The best low risk Mutual Funds 2019 optimise the return of an investor by diversifying the funds across different types of securities. It ensures decent and predictable range, making them a safer option for a conservative investor.

Low risk Mutual Funds are also suitable for individuals who prefer short and medium-term investment options.

  • Medium-term funds – Low risk Mutual Funds with medium length tenor are better and more suitable to ride volatile interest rates of a fluctuating market. These investments usually range from 3 years to 5 years, offering higher returns than other secure investments like bank FDs for example although ensuring close enough security.
  • Short-term funds – Individuals looking for short-term investments are likely to prefer this type of low-risk Mutual Funds over others. These offer higher returns, usually ranging from 7% to 9%, along with a provision to liquidate the investment for catering to emergency financial requirement.

Major Advantages

The primary advantage of the best low risk Mutual Funds is that it offers a secure and alternative mode of income for an individual. It also poses a significantly lower market risk, as the funds are invested in safer Government bonds.

  • It offers provision to liquidate the funds to meet any emergency financial requirement.
  • Moderate, but stable return over the tenor.

Let's have a closer look

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

Indiabulls Short Term Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Short Duration segment and provided 8.13% annualized returns in the last 3 years. In the last 1 year, it gave 9.24% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.24% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM68Cr
1Y Returns9.2%

Aditya Birla Sun Life Money Manager Fund Direct Dividend Weekly

Fund Performance: This fund has consistently beaten its benchmark in Money Market segment and provided 7.76% annualized returns in the last 3 years. In the last 1 year, it gave 8.94% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.94% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM12,746Cr
1Y Returns8.9%

Aditya Birla Sun Life Money Manager Fund Direct DIvidend Daily

Fund Performance: This fund has consistently beaten its benchmark in Money Market segment and provided 7.76% annualized returns in the last 3 years. In the last 1 year, it gave 8.94% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.94% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM12,746Cr
1Y Returns8.9%

Aditya Birla Sun Life Money Manager Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Money Market segment and provided 7.76% annualized returns in the last 3 years. In the last 1 year, it gave 8.92% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.92% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM12,746Cr
1Y Returns8.9%

Aditya Birla Sun Life Money Manager Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Money Market segment and provided 7.63% annualized returns in the last 3 years. In the last 1 year, it gave 8.78% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.78% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM12,746Cr
1Y Returns8.8%

Mahindra Liquid Fund Direct Dividend Daily

Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided 7.2% annualized returns in the last 3 years. In the last 1 year, it gave 7.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.46% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM3,300Cr
1Y Returns7.5%

Mahindra Liquid Fund Direct Dividend Weekly

Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided 7.2% annualized returns in the last 3 years. In the last 1 year, it gave 7.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.46% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM3,300Cr
1Y Returns7.5%

Mahindra Liquid Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided 7.19% annualized returns in the last 3 years. In the last 1 year, it gave 7.45% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.45% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM3,300Cr
1Y Returns7.5%

Franklin India Liquid Fund Direct Dividend Weekly

Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided 7.18% annualized returns in the last 3 years. In the last 1 year, it gave 7.53% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.53% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM12,029Cr
1Y Returns7.5%

Franklin India Liquid Fund Direct Dividend Daily

Fund Performance: This fund has consistently beaten its benchmark in Liquid segment and provided 7.18% annualized returns in the last 3 years. In the last 1 year, it gave 7.53% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.53% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM12,029Cr
1Y Returns7.5%

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