Table of Contents
- What are Low Risk Investment Funds?
- Best Low Risk Mutual Funds FY 19 - 20
Top 5 Debt - Ultrashort Bond Funds
Top 5 Best Low Risk Mutual Funds to Invest in 2019
Generally, a newbie to investment or a senior citizen who wants to secure their funds look for low-risk Mutual Funds. When an investor wants to invest in a low-risk Mutual Funds it's usually because he needs to secure his money or earn optimal returns in a short duration.
So, if you are one of those you can read more
What are Low Risk Investment Funds?
Many investors look forward to Investing in Mutual Funds as these offer higher returns and also are more tax efficient than other instruments like fixed deposits. But, when it comes to risk-averse investors, these are investors who are looking for secure returns and can’t tolerate risk in investments. Also, a risk-averse investor won’t prefer investing in equities, as they are highly risky funds.
Debt fund are suited for risk-averse or even a newbie investor who is willing to invest in Mutual Funds. As debt funds invest in government Bonds, Money market funds, etc., they are relatively safer. There are various types of debt funds like Liquid Funds, ultra-short term funds, short term funds, dynamic bonds, gilts funds, etc., that vary in risks. long term debt funds are risky funds, thus investors with a low-risk appetite should avoid investing in these funds.
Liquid funds and ultra-short term funds are the lowest risky funds that’s aims at generating optimal returns for a short duration. Thus a newbies investor who wants to earn good returns on their idle money within a shorter tenure can invest here.
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Best Low Risk Mutual Funds FY 19 - 20
Liquid Funds
Liquid funds invest in securities that have a low maturity period, usually less than 91 days. These funds provide easy liquidity and are least volatile than the other types of debt instruments. Also, liquids are a better option than traditional bank Savings Account. In comparison to bank account, liquid funds provide 7-8% of annual interest. Investors who want risk-free investment can ideally prefer investing in these funds. Here are the top 5 Best Liquid Funds.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity DHFL Pramerica Insta Cash Fund Growth ₹248.719
↑ 0.03 ₹581 1.7 3.5 7.5 7.1 7.4 6.13% 1M 6D 1M 6D JM Liquid Fund Growth ₹52.3484
↑ 0.02 ₹1,334 1.7 3.5 7.4 7.1 7.4 6.49% 10D 10D Indiabulls Liquid Fund Growth ₹1,863.98
↑ 0.57 ₹2,130 1.6 3.4 7.2 7.1 7.3 5.97% 1M 2D 1M 2D Principal Cash Management Fund Growth ₹1,696.19
↑ 0.48 ₹222 1.5 3.2 -2.3 3.8 -1.8 5.74% 7D 7D Reliance Liquid Fund Growth ₹4,666.12
↑ 0.72 ₹26,499 1.7 3.6 7.5 7.1 7.4 6.18% 1M 7D 1M 10D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 23 Aug 19
Ultra Short Term Funds
These funds invest in a combination of debt instruments like treasury bills, commercial papers, certificate of deposits, and corporate bonds. The funds have a lower residual maturity, ranging from 6 months to 1 year. Ultra Short Term fund offer good returns with very less market volatility. Newbie investors who are looking for better returns than Liquid Funds should prefer investing in these funds, as they provide better returns than liquid funds. Here are the top 5 best ultra-short term funds.
To provide a combination of regular income and high liquidity by investing primarily in a mix of short term debt and money market instruments. Franklin India Ultra Short Bond Fund - Super Institutional Plan is a Debt - Ultrashort Bond fund was launched on 18 Dec 07. It is a fund with Moderate risk and has given a Below is the key information for Franklin India Ultra Short Bond Fund - Super Institutional Plan Returns up to 1 year are on The primary objective of the schemes is to generate regular income through investments in debt and money market instruments. Income maybe generated through the receipt of coupon payments or the purchase and sale of securities in the underlying portfolio. The schemes will under normal market conditions, invest its net assets in fixed income securities, money market instruments, cash and cash equivalents. Aditya Birla Sun Life Savings Fund is a Debt - Ultrashort Bond fund was launched on 16 Apr 03. It is a fund with Moderately Low risk and has given a Below is the key information for Aditya Birla Sun Life Savings Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Regular Income Fund) The fund’s objective is to generate regular income through investments primarily in debt and money market instruments. As a secondary objective, the Scheme also seeks to generate long term capital appreciation from the portion of equity investments under the Scheme. ICICI Prudential Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 3 May 11. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Ultra Short Term Fund Returns up to 1 year are on (Erstwhile SBI Magnum InstaCash Fund) To provide the investors an opportunity to earn returns through investment in
debt & money market securities, while having the benefit of a very high degree of liquidity. SBI Magnum Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 21 May 99. It is a fund with Low risk and has given a Below is the key information for SBI Magnum Ultra Short Duration Fund Returns up to 1 year are on (Erstwhile Invesco India Medium Term Bond Fund) The objective is to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments. Invesco India Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 30 Dec 10. It is a fund with Moderate risk and has given a Below is the key information for Invesco India Ultra Short Term Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹27.2229
↓ 0.00 ₹19,954 2.3 4.7 9.8 8.9 8.7 9.67% 6M 7D 7M 6D Aditya Birla Sun Life Savings Fund Growth ₹382.056
↑ 0.10 ₹15,237 2.3 4.5 9 7.9 7.6 7.25% 6M 11D 7M 2D BOI AXA Ultra Short Duration Fund Growth ₹2,333.19
↑ 0.46 ₹322 2 4.1 8.1 8 7.6 6.72% 5M 5D 5M 22D Indiabulls Ultra Short Term Fund Growth ₹1,868.97
↑ 0.38 ₹85 1.9 4.1 8 7.5 7.1 6.62% 3M 29D UTI Ultra Short Term Fund Growth ₹2,988.24
↑ 0.62 ₹3,133 -2.3 -0.5 3.1 5.7 7 8% 4M 28D 5M 25D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 23 Aug 19 1. Franklin India Ultra Short Bond Fund - Super Institutional Plan
CAGR/Annualized return of 9% since its launch. Return for 2018 was 8.7% , 2017 was 8.2% and 2016 was 9.7% . Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth Launch Date 18 Dec 07 NAV (23 Aug 19) ₹27.2229 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹19,954 on 31 Jul 19 Category Debt - Ultrashort Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆☆ Risk Moderate Expense Ratio 0.37 Sharpe Ratio 8.72 Information Ratio 3.41 Alpha Ratio 0.14 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 9.67% Effective Maturity 7 Months 6 Days Modified Duration 6 Months 7 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 14 ₹10,000 31 Jul 15 ₹10,987 31 Jul 16 ₹12,048 31 Jul 17 ₹13,169 31 Jul 18 ₹14,173 31 Jul 19 ₹15,552 Returns for Franklin India Ultra Short Bond Fund - Super Institutional Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Aug 19 Duration Returns 1 Month 0.8% 3 Month 2.3% 6 Month 4.7% 1 Year 9.8% 3 Year 8.9% 5 Year 9.2% 10 Year 15 Year Since launch 9% Historical performance (Yearly) on absolute basis
Year Returns 2018 8.7% 2017 8.2% 2016 9.7% 2015 9.7% 2014 10% 2013 10% 2012 10.3% 2011 9.4% 2010 5.9% 2009 6.1% Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
Name Since Tenure Santosh Kamath 25 Oct 18 0.6 Yr. Pallab Roy 1 Jun 08 11 Yr. Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 31 Jul 19
Asset Allocation
Asset Class Value Cash 22.69% Debt 70.31% Other 7% Debt Sector Allocation
Sector Value Corporate 68.57% Cash Equivalent 22.69% Government 1.74% Credit Quality
Rating Value A 39.39% AA 43.8% AAA 16.81% Top Securities Holdings / Portfolio
Name Holding Value Quantity Call, Cash & Other Assets
Receivables | -7% ₹1,396 Cr Vedanta Limited
Debentures | -4% ₹788 Cr 7,900
↑ 1,950 Vodafone Mobile Services Limited
Debentures | -4% ₹775 Cr 7,990 DOLVI Minerals & Metals Private Limited
Debentures | -3% ₹695 Cr 3,910
↑ 130 Renew Power Ventures Private Limited
Debentures | -3% ₹662 Cr 6,740 JM FINANCIAL CREDIT SOLUTIONS LIMITED
Debentures | -3% ₹539 Cr 5,400
↑ 5,400 REC LIMITED
Commercial Paper | -2% ₹459 Cr 9,500 Indostar Capital Finance Limited
Debentures | -2% ₹439 Cr 4,400 REC LIMITED
Commercial Paper | -2% ₹396 Cr 8,000 INDOSTAR CAPITAL FINANCE LIMITED
Debentures | -2% ₹391 Cr 3,900
↑ 3,900 2. Aditya Birla Sun Life Savings Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 6 in Ultrashort Bond category. Return for 2018 was 7.6% , 2017 was 7.2% and 2016 was 9.2% . Aditya Birla Sun Life Savings Fund
Growth Launch Date 16 Apr 03 NAV (23 Aug 19) ₹382.056 ↑ 0.10 (0.03 %) Net Assets (Cr) ₹15,237 on 31 Jul 19 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.35 Sharpe Ratio 8.98 Information Ratio 0.4 Alpha Ratio 3.1 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.25% Effective Maturity 7 Months 2 Days Modified Duration 6 Months 11 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 14 ₹10,000 31 Jul 15 ₹10,943 31 Jul 16 ₹11,942 31 Jul 17 ₹12,934 31 Jul 18 ₹13,777 31 Jul 19 ₹14,991 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Aug 19 Duration Returns 1 Month 0.8% 3 Month 2.3% 6 Month 4.5% 1 Year 9% 3 Year 7.9% 5 Year 8.4% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.6% 2017 7.2% 2016 9.2% 2015 8.9% 2014 9.7% 2013 9.5% 2012 9.7% 2011 9.2% 2010 5.8% 2009 5.8% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 11 Oct 14 4.31 Yr. Kaustubh Gupta 15 Jul 11 7.55 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 31 Jul 19
Asset Allocation
Asset Class Value Cash 47.95% Debt 52.05% Debt Sector Allocation
Sector Value Cash Equivalent 47.95% Corporate 35.21% Government 12.85% Securitized 3.98% Credit Quality
Rating Value AA 16.48% AAA 83.52% Top Securities Holdings / Portfolio
Name Holding Value Quantity Power Finance Corporation Ltd.
Debentures | -3% ₹464 Cr 4,650 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -3% ₹443 Cr 9,000
↓ -2,000 Rural Electrification Corporation Limited
Debentures | -3% ₹427 Cr 4,263
↑ 2,500 Bharti Telecom Limited
Debentures | -3% ₹392 Cr 3,500
↑ 1,000 IndusInd Bank Limited
Certificate of Deposit | -2% ₹344 Cr 35,000 Net Receivables / (Payables)
Net Current Assets | -2% ₹343 Cr AXIS BANK LIMITED
Certificate of Deposit | -2% ₹342 Cr 35,000
↑ 10,000 Reliance Industries Limited
Debentures | -2% ₹313 Cr 3,150 POWER FINANCE CORPORATION LIMITED
Debentures | -2% ₹307 Cr 3,050
↑ 500 Rural Electrification Corporation Limited
Debentures | -2% ₹301 Cr 3,000 3. ICICI Prudential Ultra Short Term Fund
CAGR/Annualized return of 8.4% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2018 was 7.5% , 2017 was 6.9% and 2016 was 9.8% . ICICI Prudential Ultra Short Term Fund
Growth Launch Date 3 May 11 NAV (23 Aug 19) ₹19.5069 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹5,106 on 31 Jul 19 Category Debt - Ultrashort Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.56 Sharpe Ratio 9.29 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Months (0.5%),1 Months and above(NIL) Yield to Maturity 8% Effective Maturity 4 Months 24 Days Modified Duration 4 Months 17 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 14 ₹10,000 31 Jul 15 ₹11,261 31 Jul 16 ₹12,310 31 Jul 17 ₹13,380 31 Jul 18 ₹14,229 31 Jul 19 ₹15,430 Returns for ICICI Prudential Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Aug 19 Duration Returns 1 Month 0.7% 3 Month 2.2% 6 Month 4.3% 1 Year 8.5% 3 Year 7.8% 5 Year 9.1% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.5% 2017 6.9% 2016 9.8% 2015 9.1% 2014 14.8% 2013 3.1% 2012 9.4% 2011 2010 2009 Fund Manager information for ICICI Prudential Ultra Short Term Fund
Name Since Tenure Manish Banthia 15 Nov 16 2.62 Yr. Ritesh Lunawat 15 Jun 17 2.04 Yr. Data below for ICICI Prudential Ultra Short Term Fund as on 31 Jul 19
Asset Allocation
Asset Class Value Cash 42.76% Debt 57.24% Debt Sector Allocation
Sector Value Corporate 49.98% Cash Equivalent 42.76% Government 5.81% Securitized 1.44% Credit Quality
Rating Value A 5.88% AA 55.06% AAA 39.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -5% ₹267 Cr 2,650 Treps
CBLO/Reverse Repo | -4% ₹182 Cr Writers And Publishers Private Limited
Debentures | -4% ₹179 Cr 1,782
↓ -150 JSW Steel Limited
Debentures | -3% ₹161 Cr 1,595 Bahadur Chand Investments Private Limited
Debentures | -3% ₹151 Cr 1,500 Ashoka Buildcon Ltd.
Debentures | -3% ₹151 Cr 1,500 Aspire Home Finance Corporation Limited
Debentures | -3% ₹149 Cr 1,500 LIC HOUSING FINANCE LIMITED
Commercial Paper | -3% ₹149 Cr 3,000 Manappuram Finance Limited
Debentures | -3% ₹148 Cr 1,481 NIRCHEM Cement Limited
Debentures | -3% ₹147 Cr 1,465 4. SBI Magnum Ultra Short Duration Fund
CAGR/Annualized return of 7.4% since its launch. Return for 2018 was 7.9% , 2017 was 6.6% and 2016 was 7.7% . SBI Magnum Ultra Short Duration Fund
Growth Launch Date 21 May 99 NAV (23 Aug 19) ₹4,279.23 ↑ 0.97 (0.02 %) Net Assets (Cr) ₹8,447 on 31 Jul 19 Category Debt - Ultrashort Bond AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 9.75 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment Exit Load NIL Yield to Maturity 6.94% Effective Maturity 5 Months 16 Days Modified Duration 5 Months 5 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 14 ₹10,000 31 Jul 15 ₹10,873 31 Jul 16 ₹11,746 31 Jul 17 ₹12,546 31 Jul 18 ₹13,438 31 Jul 19 ₹14,575 Returns for SBI Magnum Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Aug 19 Duration Returns 1 Month 0.7% 3 Month 2.1% 6 Month 4.2% 1 Year 8.5% 3 Year 7.5% 5 Year 7.8% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.9% 2017 6.6% 2016 7.7% 2015 8.3% 2014 9% 2013 9.3% 2012 9.3% 2011 8.7% 2010 5.4% 2009 4.8% Fund Manager information for SBI Magnum Ultra Short Duration Fund
Name Since Tenure Rajeev Radhakrishnan 1 May 10 9 Yr. Data below for SBI Magnum Ultra Short Duration Fund as on 31 Jul 19
Asset Allocation
Asset Class Value Cash 75.22% Debt 24.78% Debt Sector Allocation
Sector Value Cash Equivalent 75.22% Corporate 20.71% Government 3.58% Securitized 0.49% Credit Quality
Rating Value AA 11.68% AAA 88.32% Top Securities Holdings / Portfolio
Name Holding Value Quantity NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -4% ₹332 Cr 35,000
↓ -15,000 CITICORP FINANCE (INDIA) LIMITED
Debentures | -3% ₹250 Cr 2,500 ANDHRA BANK
Certificate of Deposit | -3% ₹238 Cr 25,000 BANK OF BARODA
Certificate of Deposit | -3% ₹237 Cr 25,000 BANK OF BARODA
Certificate of Deposit | -3% ₹219 Cr 21,900
↑ 21,900 Small Industries Development Bank Of India
Debentures | -2% ₹205 Cr 2,050 AXIS BANK LIMITED
Certificate of Deposit | -2% ₹202 Cr 21,000
↑ 21,000 Indostar Capital Finance Limited
Debentures | -2% ₹200 Cr 2,000 Indostar Capital Finance Limited
Debentures | -2% ₹197 Cr 1,970 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Certificate of Deposit | -2% ₹190 Cr 20,000 5. Invesco India Ultra Short Term Fund
CAGR/Annualized return of 8.2% since its launch. Ranked 40 in Ultrashort Bond category. Return for 2018 was 7.3% , 2017 was 7.1% and 2016 was 9.1% . Invesco India Ultra Short Term Fund
Growth Launch Date 30 Dec 10 NAV (23 Aug 19) ₹1,969.18 ↑ 0.62 (0.03 %) Net Assets (Cr) ₹619 on 31 Jul 19 Category Debt - Ultrashort Bond AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 0.55 Sharpe Ratio 7.85 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.34% Effective Maturity 5 Months 5 Days Modified Duration 4 Months 21 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 14 ₹10,000 31 Jul 15 ₹10,924 31 Jul 16 ₹11,958 31 Jul 17 ₹12,941 31 Jul 18 ₹13,779 31 Jul 19 ₹14,894 Returns for Invesco India Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Aug 19 Duration Returns 1 Month 0.7% 3 Month 2.1% 6 Month 4.2% 1 Year 8.2% 3 Year 7.6% 5 Year 8.3% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.3% 2017 7.1% 2016 9.1% 2015 8.3% 2014 10.1% 2013 6.1% 2012 8.9% 2011 8.2% 2010 2009 Fund Manager information for Invesco India Ultra Short Term Fund
Name Since Tenure Nitish Sikand 30 Dec 10 8.42 Yr. Data below for Invesco India Ultra Short Term Fund as on 31 Jul 19
Asset Allocation
Asset Class Value Cash 32.62% Debt 67.38% Debt Sector Allocation
Sector Value Corporate 47.11% Cash Equivalent 32.62% Government 20.27% Credit Quality
Rating Value AA 13.53% AAA 86.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -8% ₹50 Cr 5,000,000 Housing Development Finance Corporation Limited
Debentures | -8% ₹50 Cr 5,000,000 Indian Railway Finance Corporation Limited
Debentures | -8% ₹50 Cr 5,000,000
↑ 5,000,000 Indiabulls Housing Finance Limited
Debentures | -8% ₹50 Cr 5,000,000 Triparty Repo
CBLO/Reverse Repo | -7% ₹45 Cr Power Finance Corporation Ltd.
Debentures | -6% ₹40 Cr 4,000,000 Rural Electrification Corporation Limited
Debentures | -6% ₹35 Cr 3,500,000 EDELWEISS COMMODITIES SERVICES LIMITED
Commercial Paper | -6% ₹35 Cr 3,500,000 Net Receivables / (Payables)
Net Current Assets | -4% ₹26 Cr REC LIMITED
Debentures | -4% ₹25 Cr 2,500,000
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