Best Moderate Risk Mutual Funds

Mutual fund investments involve a degree of risk. To ensure that investors are aware of the risk they are taking, the Association of Mutual Funds in India (AMFI) has divided the risk exposure of any funds into high, moderately high, moderate, moderately low, and low. While risk is subjective and may differ from one person to another, it is mandatory for fund houses to specify the risk exposure of the mutual funds as per the regulations.

Moderate risk mutual funds are funds that invest in MIP funds, Arbitrage funds, and Hybrid debt-oriented funds. These fund schemes are considered to be safe investments for short to medium term investment horizon which is about one to three years. The best moderate risk mutual funds as the name suggests expose your capital to only moderate-level risks.

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Top 10 Moderate Risk Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
SBI Magnum Constant Maturity FundDebtModerate18.3%5star445
Reliance Gilt Securities FundDebtModerate17.9%5star1,089
Reliance Gilt Securities FundDebtModerate17.9%5star1,089
Reliance Gilt Securities FundDebtModerate17.9%5star1,089
Reliance Gilt Securities FundDebtModerate17.9%5star1,089
Reliance Gilt Securities FundDebtModerate17.9%5star1,089
Indiabulls Savings Income FundHybridModerate5.6%5star19
Indiabulls Savings Income FundHybridModerate5.6%5star19
DHFL Pramerica Dynamic Bond FundDebtModerate14.3%5star41
DHFL Pramerica Dynamic Bond FundDebtModerate14.3%5star41
View All Top 10 Moderate Risk Mutual Funds

Features of Moderate Risk Mutual Fund

These funds are ideal for investors who do not want to take excessive risks but at the same time also want to generate reasonable returns. Most instruments selected by the fund houses to take moderate risks are capable of generating stable returns without any huge risks. These funds are ideal for investors aiming at the creation of wealth in a period of over one to three years.

The best moderate risk funds in India also serve the purpose of diversifying the investment portfolio through a mix of debt and equity funds which does not expose the investor to higher risks and also results in reasonable risk-adjusted returns. These mutual funds tend to accomplish long-term financial goals with the preservation of capital.

Taxability

Moderate risk mutual funds are similar to debt funds in terms of tax liability. The applicable tax rate for earning from mutual funds depends on the holding period of the investment. If the funds were held for a period of less than three years, a short-term capital gain tax as per the investor’s income tax slab will be applicable. On the other hand, if the holding period is more than 36 months, long term capital gain (LTCG) of 20 per cent with indexation will be levied.

Who Are These Funds Suited For?

These mutual funds are designed basically for risk-conscious investors seeking risk-free returns or returns at minimal risk. These mutual funds serve as the perfect instrument for investors with a medium to long-term investment horizon. Investing in the best performing mutual funds for moderate risk can help investors create a stable portfolio.

Investors looking to diversify their portfolio can also invest in moderate risk mutual funds and reduce the exposure to equity-oriented mutual funds. Investors who are not prepared for devastating or huge losses can stick to moderate risk mutual funds. Even if these funds were to generate negative returns, the losses would be moderate.

Major Advantages

These funds may serve different purposes for different investors depending on their individual goals.

Additionally, majority if not all moderate risk mutual funds are debt-oriented schemes making them a comparatively safer option for the investor. This also means that in case of a default, it is comparatively easier to get the initial investment back. The best moderate risk mutual funds can generate returns that are in-line with the risk exposure.

These funds enable risk-averse investors to generate a reasonable return without taking any undue risks and earn a regular income. Investors can also earn dividend income by investing in these funds.

Let's have a closer look

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

SBI Magnum Constant Maturity Fund Direct Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 10.61% annualized returns in the last 3 years. In the last 1 year, it gave 18.28% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 18.28% 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
AUM445Cr
1Y Returns18.3%

Reliance Gilt Securities Fund Direct Automatic Annual Reinvest Option

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.91% annualized returns in the last 3 years. In the last 1 year, it gave 17.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 17.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,089Cr
1Y Returns17.9%

Reliance Gilt Securities Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.91% annualized returns in the last 3 years. In the last 1 year, it gave 17.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 17.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,089Cr
1Y Returns17.9%

Reliance Gilt Securities Fund Direct Automatic Capital Appreciation Payout option Dividend

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.91% annualized returns in the last 3 years. In the last 1 year, it gave 17.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 17.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,089Cr
1Y Returns17.9%

Reliance Gilt Securities Fund Direct Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.91% annualized returns in the last 3 years. In the last 1 year, it gave 17.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 17.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,089Cr
1Y Returns17.9%

Reliance Gilt Securities Fund Direct Bonus

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.91% annualized returns in the last 3 years. In the last 1 year, it gave 17.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 17.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,089Cr
1Y Returns17.9%

Indiabulls Savings Income Fund Direct Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Conservative segment and provided 9.71% annualized returns in the last 3 years. In the last 1 year, it gave 5.61% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5.61% 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 Hybrid mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM19Cr
1Y Returns5.6%

Indiabulls Savings Income Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Conservative segment and provided 9.71% annualized returns in the last 3 years. In the last 1 year, it gave 5.61% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5.61% 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 Hybrid mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM19Cr
1Y Returns5.6%

PGIM India Dynamic Bond Direct Plan Dividend Monthly

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.52% annualized returns in the last 3 years. In the last 1 year, it gave 14.33% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 14.33% 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
AUM41Cr
1Y Returns14.3%

PGIM India Dynamic Bond Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.52% annualized returns in the last 3 years. In the last 1 year, it gave 14.33% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 14.33% 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
AUM41Cr
1Y Returns14.3%

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