Top 10 Low Risk High Return Mutual Funds in India – Safe Picks

Successful investing is not just about large returns, but also about the ability to generate them consistently with minimum risk. In the evolving market environment, investors often search for the top 10 low risk high return mutual funds in India, which essentially reflects a demand for stability-driven and risk-conscious portfolio choices. However, selecting the right fund requires more than simply reviewing past performance. A deep evaluation must include matrices, like standard deviation, Sharpe ratio, credit quality of holding and asset allocation discipline. The section, therefore, focuses on funds that constantly deliver stable returns, manage market volatility and express disciplined long-term risk management.

What are Low-Risk, High-Return Mutual Funds?

Low-risk mutual funds are suitable for investors who are seeking their money to grow steadily without being exposed to market fluctuations. Besides aggressive equity funds, these mutual funds mainly invest in safer, stable assets, like government securities and low volatility instruments. The main focus of low risk high return mutual funds is on capital preservation and predictable returns, suitable for conservative investors who are seeking to balance their portfolios.  

One of their defining traits is as follows:

1. Low volatility
2. Capital Preservation
3. Consistent income
4. Conservative approach
5. Risk assessment

List of Top 10 Low Risk High Return Mutual Funds in India

One can invest confidently with the following India’s top 10 low risk high return mutual funds, prioritizing stability and smart-risk management:

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Overview of Low Risk High Return Mutual Funds

Below is an overview of the top 10 low risk high return mutual funds in India in brief:

1. Canara Robeco Bluechip Equity Fund - Growth

With its NAV at Rs. 10,090, the fund has shown consistent growth. Over the past year, it delivered a strong return of 13.97%, while the three year and five-year annualised returns stand at 18.45 % and 16.04%, respectively.

Note: An exit load of 1% applies if units are redeemed within 12 months.

2. ICICI Prudential Value Discovery Fund - Growth

The fund boasts a high NAV of Rs. 32,754, reflecting its strong performance track record. With 24.29% returns over the past years, and annualised returns of 29.77% and 18.24% over three and five years, respectively.

Note: An exit load of 1% applies if units are redeemed within 12 months.

3. Kotak Bluechip Fund - Reg - Growth

With the current NAV of Rs. 6,370, this fund has delivered a steady return of 14.525 over the past year. Its three year and five-year annualised returns lie at 19.66% and 15.38%, reflecting consistent performance.

Note: An exit load of 1% applies if units are redeemed within 12 months.

4. Nippon India Large Cap Fund - Reg - Growth

Nippon India Large Cap Fund boasts an NAV of Rs. 15,855 and a strong one-year return of 22.71%. Its three and five-year returns stand at 29.32% and 16.27% respectively.

Note: An exit load of 1% applies if units are redeemed within 7 days.  

5. HDFC Index Fund-NIFTY 50 Plan

This index fund carries an NAV of Rs. 9446 and has a one-year return of 14.09%. Its three and five-year returns are 19.88% and 14.475 respectively.

Note: The exit load is unfavourable for investors seeking flexibility in their investment timeline.

6. ICICI Prudential Nifty 50 Index Fund - Reg - Growth

With an NAV of 4,977, this index boast of 14.06% of yearly return. It has three and five-year returns of 19.81% and 14.39%, respectively.

Note: The exit load is unfavourable for investors seeking flexibility in their investment timeline.

7. UTI Nifty 50 Index Fund - Growth

This fund boasts an NAV of 12,092 and 4.2% of yearly return. Its three and five-year returns are high at 20.06% and 14.69%, respectively.

Note: It has no exit load, offering investors greater flexibility.

8. Aditya Birla Sun Life Liquid Fund - Reg - Growth

This liquid fund has a high NAV of Rs. 32,542 and comparatively lower returns, with the latest annual return at 6.83%.

Note: The details related to the exit load, which investors should inquire about before investing.

9. HDFC Liquid Fund - Growth

This fund boasts an NAV of 47,502, the highest among the listed funds. However, its returns are lower, with the latest annual return at 6.74%.

Note: The details related to exit load, which investors should inquire about before investing.

10.ICICI Prudential Liquid Fund - Reg - Growth

ICICI Prudential liquid fund gives an annual return of 6.76%, along with NAV of 38,982.

Note: The details related to exit load, which investors should inquire about before investing.

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Who Are These Funds Suited For?

Low-risk mutual funds are perfect for investors seeking safety, steady returns, such as those nearing retirement or with low-risk tolerance. It focuses on capital preservation, stable income and minimal market volatility, making it a reliable choice for gradual wealth growth.  Moreover, this is also appealing to anyone looking for a predictable income without the stress of market fluctuations.

Key investor profiles for low risk high return mutual funds are as follows:

1. Individuals nearing retirement
2. Low risk tolerance
3. Seeking a steady and dependable income
4. Conservative investors supplementing retirement income

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Advantages of Low-Risk High Return Mutual Funds

The top 10 low-risk high return mutual funds in India are an excellent choice for conservative investors who prioritise capital safety and steady growth. It offers a reliable way to navigate market fluctuations, while still earning returns, making it perfect for those who prefer stability over high-risk speculation.

The key advantages of low-risk mutual funds include:

1. Capital Preservation: Protects the initial investment and reduces the chances of major losses.
2. Market Stability: Maintains performance as compared to a high-risk fund during volatile periods.
3. Consistent Returns: Although growth may be moderate, investors benefit from predictable, reliable returns over time.
4. Balanced Approach: Provides a smart trade-off between minimising risk and earning reasonable returns.

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Conclusion

To conclude, the top 10 low risk high return mutual funds in India offer a perfect balance of stability and continuous growth. These are ideal for conservative investors, those nearing retirement, or anyone seeking a predictable income. It focuses on capital preservation, low volatility and consistent returns. However, the returns may be moderate as compared to high-risk options, as it offers peace of mind and a reliable way to grow wealth gradually. Thus, it will be a smart and disciplined strategy for long-term financial security by incorporating these funds into a portfolio.

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FAQs

1. Which Low-Risk Mutual Funds Offer The Highest Returns In India?

Funds like ICICI Prudential Value Discovery, Nippon India Large Cap, and Canara Robeco Bluechip are constantly delivering high returns safely.

 2. Who Should Invest In Low-Risk High-Return Mutual Funds?

These are as follows:

1. Conservative investors
2. An individual nearing retirement
3. Low risk tolerance
4. Anyone seeking a predictable income

3. How do Low-Risk Mutual Funds Differ From High-Risk Equity Funds?

Low-risk mutual funds prefer capital preservation, stable returns, and low volatility, as compared to high-risk equity funds focused on aggressive growth.

4. What Factors Should IConsider Before Choosing a Low-Risk Mutual Fund?

The following are the factors one should consider:

1. NAV
2. Exit load
3. Credit quality
4. Asset allocation
5. Volatility
6. Risk-adjusted matrices

5. Can Low-Risk Mutual Funds Provide Significant Returns Over The Long Term?

Yes, low-risk mutual funds offer consistent returns over the long term, though generally lower than high-risk equity funds.