Best Mutual Funds For Low Risk Investors in 2019

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Mutual fund market comprises of different category schemes, and each category has different schemes that follow different investment style and approach. Based on their investment style, these mutual fund plans show varied performance and have different types of risk associated with them. Let’s take a look at some of the low risk mutual funds from different categories.

Axis Bluechip Fund (G)

Axis Bluechip Fund was among the few schemes that showed a stellar performance during the past 1 year market fluctuations. The scheme has been following investment strategies to provide investors with optimal growth with low risk. At present too, to make sure that stable returns can be provided to investors the scheme is investing all of its equity investments in the large caps. In addition to this, 13.26% of the total investments are in the debt instruments to provide an extra level of protection during volatility in the equity market. The number of stocks is just 22, which shows that the scheme prefers quality over quantity, and the sector allocation is oriented towards finance (43.59%), so an optimal growth can be expected in the future. A great scheme if you have a low risk appetite and want to explore the opportunities of the equity market.

ICICI Prudential Bluechip Fund (G)

ICICI Prudential Bluechip Fund has also shown a great performance in market upsides as well as the downsides. The scheme also follows a large cap (96.41%) oriented market cap allocation, and a small part is given to the mid cap (3.60%) companies so that the opportunities of the market can be grabbed. The debt allocation of the fund is 6.95%, and 2.28% is in cash and cash equivalents. The portfolio allocation is partially diversified with current investments in 55 stocks. The portfolio allocation of this large cap fund is oriented towards finance (30.68%), and the other top sectors include energy, technology, automobile, and FMCG. One of the best schemes for enjoying risk adjusted returns in the long term.

Mirae Asset Hybrid Equity Fund (G)

Mirae Asset Hybrid Equity Fund is among the most preferred choices of low risk investors. The aggressive hybrid scheme has not completed much time in the mutual fund industry but has managed to make its place among the top schemes of the category. The scheme invests in a mix of equity and debt instruments and as of now has 73.95% investments in the equities, 23.89% in the debt and the rest 2.13% in the cash instruments. The stock picking is diversified and as of now, it has investments in 60 stocks picked across from different sectors. The major allocation is held by the finance (27.21%) sector, and the other sectors that hold major investments are energy, technology, FMCG, and healthcare. As for the debt space, instruments with high credit quality and medium interest rate sensitivity are chosen so that risk adjusted returns can be provided.

Aditya Birla Sun Life Regular Savings Fund (G)

ABSL Regular Savings Fund has maintained great consistency in returns for a long time. The scheme being a conservative hybrid fund invests in a mix of debt & equity and currently has 70.90% investments in the debt space and the rest 29.10% in the equity & cash instruments. In the debt class, the major allocation is in AAA (20.49%) rated instruments, followed by AA (17.31%), A1+ (15.11%), A & below (9.65%), cash equivalents (6.59%), and the last are SOV (4.94%). In the equities, finance (11.72%) holds the major allocation, and the other major sectors in the portfolio are construction (2.50%), cons durable (2.34%), services (2.06%), energy (1.75%), and other equity sectors. This scheme is an optimal choice for investors who cannot face heavy downsides and can also be added to an existing portfolio to reduce the risk or to increase the exposure in the debt space.

Franklin India Income Opportunities Fund (G)

Franklin Templeton Mutual Fund has provided some of the premium schemes in the debt space and, one among them is Franklin India Income Opportunities Fund. Since the launch, the scheme has maintained annual average returns 7% and more. Franklin India Income Opportunities Fund invests in fixed income securities mainly consisting of bonds and debentures. The instruments chosen are of low credit quality and high interest rate sensitivity so that high growth can be provided from the debt instruments. As of now, the scheme has 44.25% investments in A & below rated instruments, 41.85% in AA rated instruments, 10.73% in AAA rated instruments, 2.11% in cash equivalents, and 1.07% in A1+ rating instruments. The average maturity of the instruments is 4.73 years, which makes it a perfect choice for investors with a medium investment tenure.

These were some of the best schemes for investors with low risk. From this list, you can choose single or multiple mutual funds, as per your investment needs. If you face any kind of problem with the selection or have any query about the above-mentioned or any other mutual fund scheme, feel free to connect with our experts at 9660032889.