Best High Risk Mutual Funds

High-risk mutual funds refer to funds that have excellent potential and the ability to provide high returns. However, these funds are very volatile in nature and come with high risks. When you take such a high-risk mutual fund, you will be required to actively and thoroughly review the performance of these funds from time to time. This will help you be aware of how your fund is doing in the market.

These high-risk mutual funds typically provide great dividends to an investor. If you are someone who is willing to take a high risk in order to receive good returns, then you can choose such a fund.

Top 10 High Risk Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
DSP BlackRock Natural Resources & New Energy FundEquityHigh-8.9%5star393
Reliance Pharma FundEquity High15.8%5star2,752
UTI Transportation and Logistics FundEquityHigh-12.6%5star1,398
Franklin Build India FundEquityHigh-7.0%5star1,091
SBI Banking & Financial Services FundEquityHigh8.4%5star493
Aditya Birla Sun Life India GenNext FundEquityHigh2.4%5star759
ICICI Prudential Technology FundEquityHigh29.3%5star476
L&T Infrastructure FundEquityHigh-10.5%5star1,876
Tata India Consumer FundEquityHigh5.9%4star1,334
Tata Digital India FundEquityHigh35.5%4star370
View All Top 10 High Risk Mutual Funds

Let's have a closer look

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

DSP BlackRock Natural Resources & New Energy Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 25.6% annualized returns in the last 3 years. In the last 1 year, it gave -8.9% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -8.9% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Rohit Singhania, Jay Kothari

Launch Date2 Jan 2013
Min Investment Amt1,000
Groww Rating5star
AUM393Cr
1Y Returns-8.9%

Reliance Pharma Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 2.73% annualized returns in the last 3 years. In the last 1 year, it gave 15.76% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 15.76% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Sailesh Raj Bhan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM2,752Cr
1Y Returns15.8%

UTI Transportation and Logistics Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 6.72% annualized returns in the last 3 years. In the last 1 year, it gave -12.63% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -12.63% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Sachin Trivedi

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM1,398Cr
1Y Returns-12.6%

Franklin Build India Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 12.4% annualized returns in the last 3 years. In the last 1 year, it gave -7.02% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -7.02% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Anand Radhakrishnan, Roshi Jain, Srikesh Nair

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM1,091Cr
1Y Returns-7.0%

SBI Banking & Financial Services Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 21.18% annualized returns in the last 3 years. In the last 1 year, it gave 8.42% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 8.42% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Sohini Andani

Launch Date25 Feb 2015
Min Investment Amt5,000
Groww Rating5star
AUM493Cr
1Y Returns8.4%

Aditya Birla Sun Life India GenNext Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 15.58% annualized returns in the last 3 years. In the last 1 year, it gave 2.43% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.43% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Anil Shah, Chanchal Khandelwal

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating5star
AUM759Cr
1Y Returns2.4%

ICICI Prudential Technology Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 12.45% annualized returns in the last 3 years. In the last 1 year, it gave 29.33% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 29.33% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: S Naren, Ashwin Jain

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM476Cr
1Y Returns29.3%

L&T Infrastructure Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 16.23% annualized returns in the last 3 years. In the last 1 year, it gave -10.54% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -10.54% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Soumendra Nath Lahiri

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM1,876Cr
1Y Returns-10.5%

Tata India Consumer Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 5.88% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5.88% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Rupesh Patel, Sonam Udasi

Launch Date27 Dec 2015
Min Investment Amt5,000
Groww Rating4star
AUM1,334Cr
1Y Returns5.9%

Tata Digital India Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided -100% annualized returns in the last 3 years. In the last 1 year, it gave 35.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 35.46% returns in the last 1 year. Groww rated this fund as 4 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Danesh Mistry

Launch Date27 Dec 2015
Min Investment Amt5,000
Groww Rating4star
AUM370Cr
1Y Returns35.5%

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When should I invest in high 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 high 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 high 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 high 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 high 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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