Top 10 Moderate Risk Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Franklin India Dynamic Accrual FundDebtModerate7.8%5star3,008
Franklin India Low Duration FundDebtModerate8.2%5star6,495
Franklin India Ultra Short Bond FundDebtModerate8.4%5star14,643
Franklin India STIPDebtModerate8.0%5star9,280
ICICI Prudential Balanced Advantage FundHybridModerate3.0%5star28,244
Kotak Low Duration FundDebtModerate7.7%5star4,592
DHFL Pramerica Short Maturity FundDebtModerate5.8%4star857
DHFL Pramerica Dynamic Bond FundDebtModerate5.9%4star167
DSP BlackRock Bond FundDebtModerate4.4%4star542
IDFC Government Securities Fund - PF PlanDebtModerate2.4%4star101
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.

Franklin India Dynamic Accrual Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.58% annualized returns in the last 3 years. In the last 1 year, it gave 7.84% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.84% 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: Sachin Padwal-Desai, Santosh Kamath, Umesh Sharma

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating5star
AUM3,008Cr
1Y Returns7.8%

Franklin India Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 9.1% annualized returns in the last 3 years. In the last 1 year, it gave 8.23% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.23% 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: Santosh Kamath, Kunal Agrawal

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating5star
AUM6,495Cr
1Y Returns8.2%

Franklin India Ultra Short Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Ultra Short Duration segment and provided 8.92% annualized returns in the last 3 years. In the last 1 year, it gave 8.38% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.38% 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: Sachin Padwal-Desai, Pallab Roy

Launch Date31 Dec 2012
Min Investment Amt10,000
Groww Rating5star
AUM14,643Cr
1Y Returns8.4%

Franklin India STIP - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Short Duration segment and provided 8.96% annualized returns in the last 3 years. In the last 1 year, it gave 8.02% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.02% 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: Santosh Kamath, Kunal Agrawal

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM9,280Cr
1Y Returns8.0%

ICICI Prudential Balanced Advantage Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Balanced Advantage segment and provided 10.53% annualized returns in the last 3 years. In the last 1 year, it gave 3.03% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.03% 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: S Naren, Rajat Chandak, Manish Banthia, Ihab Dalwai

Launch Date31 Dec 2012
Min Investment Amt500
Groww Rating5star
AUM28,244Cr
1Y Returns3.0%

Kotak Low Duration Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Low Duration segment and provided 8.59% annualized returns in the last 3 years. In the last 1 year, it gave 7.74% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 7.74% 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: Deepak Agrawal

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM4,592Cr
1Y Returns7.7%

DHFL Pramerica Short Maturity Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Short Duration segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 5.82% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5.82% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Puneet Pal, Kumaresh Ramakrishnan

Launch Date1 Jan 2013
Min Investment Amt5,000
Groww Rating4star
AUM857Cr
1Y Returns5.8%

DHFL Pramerica Dynamic Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Dynamic segment and provided 9.09% annualized returns in the last 3 years. In the last 1 year, it gave 5.86% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5.86% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Puneet Pal

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating4star
AUM167Cr
1Y Returns5.9%

DSP BlackRock Bond Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Medium Duration segment and provided 7.8% annualized returns in the last 3 years. In the last 1 year, it gave 4.37% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.37% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Pankaj Sharma, Saurabh Bhatia

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating4star
AUM542Cr
1Y Returns4.4%

IDFC Government Securities Fund - Investment Plan - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.86% annualized returns in the last 3 years. In the last 1 year, it gave 2.44% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.44% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Debt mutual fund in India.

Fund Manager: Suyash Choudhary

Launch Date31 Dec 2012
Min Investment Amt100
Groww Rating4star
AUM101Cr
1Y Returns2.4%

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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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