Top 10 Moderate Risk Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Reliance Gilt Securities FundDebtModerate10.5%5star914
Indiabulls Income FundDebtModerate8.8%5star63
Edelweiss Government Securities FundDebtModerate10.3%5star97
Baroda Pioneed Credit Risk FundDebtModerate7.1%5star989
HDFC Regular Savings FundDebtModerate6.3%5star5,433
Reliance Prime Debt FundDebtModerate8.9%5star1,652
Indiabulls Savings Income FundHybridModerate8.7%5star28
Axis Enhanced Arbitrage FundHybridModerate7.0%5star2,211
SBI Multi Asset Allocation FundHybridModerate3.4%5star278
SBI Magnum Medium Duration FundDebtModerate9.6%5star1,651
View All Top 10 Moderate Risk Mutual Funds

Best Moderate Risk Mutual Funds

Not everyone is comfortable with the high returns that accompany high risks. Those seeking comparatively stable but lower returns should go for the Stable Wealth portfolio that adopts a balanced approach and puts only 60-65% in equities. However, if the thought of losing money is completely unacceptable to you, go for the conservative Wealth Secure portfolio where the equity allocation is just 20-25% of the corpus. There’s no point in taking risks to earn high returns if it gives you sleepless nights. There are ways which can help you get moderate risks in mutual funds.

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

Reliance Gilt Securities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 10.92% annualized returns in the last 3 years. In the last 1 year, it gave 10.51% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 10.51% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Prashant R.Pimple

Launch Date22 Jul 2013
Min Investment Amt5,000
Groww Rating5star
AUM914Cr
1Y Returns10.5%

Indiabulls Income Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Medium Duration segment and provided 8.28% annualized returns in the last 3 years. In the last 1 year, it gave 8.85% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.85% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Malay Shah

Launch Date3 Mar 2013
Min Investment Amt500
Groww Rating5star
AUM63Cr
1Y Returns8.8%

Edelweiss Government Securities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.92% annualized returns in the last 3 years. In the last 1 year, it gave 10.25% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 10.25% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Dhawal Dalal, Gautam Kaul

Launch Date12 Feb 2014
Min Investment Amt5,000
Groww Rating5star
AUM97Cr
1Y Returns10.3%

Baroda Pioneed Credit Risk Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Credit Risk segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 7.06% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.06% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Alok Kumar Sahoo, Karn Kumar

Launch Date22 Jan 2015
Min Investment Amt5,000
Groww Rating5star
AUM989Cr
1Y Returns7.1%

HDFC Short Term Plan - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Short Duration segment and provided 8.88% annualized returns in the last 3 years. In the last 1 year, it gave 6.34% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 6.34% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Anil Bamboli

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM5,433Cr
1Y Returns6.3%

Reliance Prime Debt Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Corporate Bond segment and provided 8.06% annualized returns in the last 3 years. In the last 1 year, it gave 8.93% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.93% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Amit Tripathi, Anju Chajjer

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating5star
AUM1,652Cr
1Y Returns8.9%

Indiabulls Savings Income Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Conservative segment and provided 11.81% annualized returns in the last 3 years. In the last 1 year, it gave 8.67% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.67% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Malay Shah, Sumit Bhatnagar

Launch Date1 Dec 2015
Min Investment Amt500
Groww Rating5star
AUM28Cr
1Y Returns8.7%

Axis Enhanced Arbitrage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Arbitrage segment and provided 6.99% annualized returns in the last 3 years. In the last 1 year, it gave 7.01% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.01% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Ashwin Patni, Devang Shah

Launch Date13 Aug 2014
Min Investment Amt5,000
Groww Rating5star
AUM2,211Cr
1Y Returns7.0%

SBI Multi Asset Allocation Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Multi Asset Allocation segment and provided 7.49% annualized returns in the last 3 years. In the last 1 year, it gave 3.39% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.39% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Hybrid mutual fund in India.

Fund Manager: Dinesh Ahuja, Ruchit Mehta

Launch Date14 Mar 2013
Min Investment Amt5,000
Groww Rating5star
AUM278Cr
1Y Returns3.4%

SBI Magnum Medium Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Medium Duration segment and provided 9.86% annualized returns in the last 3 years. In the last 1 year, it gave 9.55% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 9.55% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Dinesh Ahuja, Ruchit Mehta

Launch Date27 Jan 2013
Min Investment Amt5,000
Groww Rating5star
AUM1,651Cr
1Y Returns9.6%

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When should I invest in medium risk mutual funds?

This is contextual. If you do not wish to invest directly in stocks (because you have better things to do or just don’t feel like it), you can choose equity mutual funds (defined below). If you would like to lower your tax outgo compared to a fixed or recurring deposit and if possible with better returns, you can choose debt mutual funds (defined below). The clearer you are about your need, the faster and confident you will be in taking decisions regarding mutual funds – well, this applies to anything in life!

Who issues medium risk mutual funds?

Asset management companies (or AMCs or fund houses) create mutual funds. All AMCs will have to be approved by the government body, Securities and Exchange Board of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the public to invest.

What does investing in medium risk mutual funds actually mean?

Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.

How to invest in medium risk mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

How long does it take to start investing in medium 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.

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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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