Table of Contents
- What are Low Risk Investment Funds?
- Best Low Risk Mutual Funds FY 20 - 21
Top 5 Debt - Ultrashort Bond Funds
Top 5 Best Low Risk Mutual Funds to Invest in 2020
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 20 - 21
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 (%) 2019 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity PGIM India Insta Cash Fund Growth ₹260.84
↑ 0.03 ₹651 1.1 2.4 5.3 6.6 6.7 3.53% 29D 1M 2D JM Liquid Fund Growth ₹54.7363
↑ 0.01 ₹3,137 0.9 2.2 5 6.5 6.6 3.34% 1M 2D 1M 3D Indiabulls Liquid Fund Growth ₹1,948.56
↑ 0.17 ₹241 0.8 2.1 5 6.4 6.6 0% Principal Cash Management Fund Growth ₹1,770.71
↑ 0.16 ₹146 0.9 2 4.7 3.1 6.2 3.21% 1M 1D 1M 2D Aditya Birla Sun Life Liquid Fund Growth ₹322.548
↑ 0.03 ₹36,679 1.1 2.5 5.3 6.6 6.7 3.67% 1M 20D 1M 20D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Jul 20
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.
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 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 (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 Kotak Treasury Advantage Fund) The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to reduce the interest rate risk. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved. Kotak Savings Fund is a Debt - Ultrashort Bond fund was launched on 13 Aug 04. It is a fund with Moderately Low risk and has given a Below is the key information for Kotak Savings 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 Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2019 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Savings Fund Growth ₹410.131
↑ 0.14 ₹11,830 2.9 4.1 8 7.8 8.5 5.11% 6M 6M 18D Indiabulls Ultra Short Term Fund Growth ₹1,982.95
↑ 0.14 ₹24 1.6 3.4 6.6 7 7.6 0% UTI Ultra Short Term Fund Growth ₹3,174.8
↑ 0.55 ₹1,296 1.7 2.8 6.3 5.3 3.3 5.83% 4M 18D 5M 12D BOI AXA Ultra Short Duration Fund Growth ₹2,466.56
↑ 0.49 ₹209 1.6 2.9 6.3 7.2 7.5 3.75% 3M 18D 3M 24D ICICI Prudential Ultra Short Term Fund Growth ₹20.8844
↑ 0.00 ₹5,571 2.6 3.5 7.6 7.5 8.4 6.18% 3M 25D 4M 10D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Jul 20 1. Aditya Birla Sun Life Savings Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 6 in Ultrashort Bond category. Return for 2019 was 8.5% , 2018 was 7.6% and 2017 was 7.2% . Aditya Birla Sun Life Savings Fund
Growth Launch Date 16 Apr 03 NAV (31 Jul 20) ₹410.131 ↑ 0.14 (0.03 %) Net Assets (Cr) ₹11,830 on 30 Jun 20 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.35 Sharpe Ratio 5.56 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.11% Effective Maturity 6 Months 18 Days Modified Duration 6 Months Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,912 31 Jul 17 ₹11,819 31 Jul 18 ₹12,589 31 Jul 19 ₹13,699 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jul 20 Duration Returns 1 Month 0.7% 3 Month 2.9% 6 Month 4.1% 1 Year 8% 3 Year 7.8% 5 Year 8.1% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2019 8.5% 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% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 11 Oct 14 5.72 Yr. Kaustubh Gupta 15 Jul 11 8.97 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 39.95% Debt 60.05% Debt Sector Allocation
Sector Value Corporate 68.42% Government 15.54% Cash Equivalent 15.39% Securitized 0.65% Credit Quality
Rating Value AA 10.75% AAA 89.25% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Receivables / (Payables)
Net Current Assets | -9% -₹1,031 Cr Reliance Industries Limited
Commercial Paper | -6% ₹705 Cr 14,500
↑ 14,500 Housing Development Finance Corporation Limited
Commercial Paper | -3% ₹377 Cr 7,762
↓ -500 Bank Of Baroda
Certificate of Deposit | -3% ₹376 Cr 38,500
↑ 38,500 Clearing Corporation Of India Limited
CBLO | -3% ₹375 Cr Shriram Transport Finance Company Limited
Debentures | -3% ₹361 Cr 3,750 Rec Limited
Debentures | -3% ₹354 Cr 3,450
↑ 200 IndusInd Bank Limited
Certificate of Deposit | -3% ₹336 Cr 35,000 Export-Import Bank Of India
Commercial Paper | -3% ₹322 Cr 6,500
↑ 6,500 Rural Electrification Corporation Limited
Debentures | -2% ₹295 Cr 2,900 2. Franklin India Ultra Short Bond Fund - Super Institutional Plan
CAGR/Annualized return of 8.6% since its launch. Return for 2019 was 9.6% , 2018 was 8.7% and 2017 was 8.2% . Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth Launch Date 18 Dec 07 NAV (31 Jul 20) ₹28.3034 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹9,772 on 30 Jun 20 Category Debt - Ultrashort Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆ Risk Moderate Expense Ratio 0.42 Sharpe Ratio 0.45 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 9.81% Effective Maturity 4 Months 28 Days Modified Duration 4 Months 6 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,966 31 Jul 17 ₹11,986 31 Jul 18 ₹12,900 31 Jul 19 ₹14,156
Purchase not allowed 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 31 Jul 20 Duration Returns 1 Month 0.9% 3 Month 2.8% 6 Month 4.5% 1 Year 4.6% 3 Year 7.3% 5 Year 8.2% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2019 9.6% 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% Fund Manager information for Franklin India Ultra Short Bond Fund - Super Institutional Plan
Name Since Tenure Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 17.58% Debt 68.17% Other 14.25% Debt Sector Allocation
Sector Value Corporate 66.63% Cash Equivalent 17.58% Government 1.54% Credit Quality
Rating Value A 25.27% AA 74.71% AAA 0.03% Top Securities Holdings / Portfolio
Name Holding Value Quantity Call, Cash & Other Assets
Receivables | -14% ₹1,393 Cr Vedanta Limited
Debentures | -8% ₹788 Cr 7,900 JM FINANCIAL CREDIT SOLUTIONS LIMITED
Debentures | -6% ₹540 Cr 5,400 Indostar Capital Finance Limited
Debentures | -4% ₹432 Cr 4,400 INDOSTAR CAPITAL FINANCE LIMITED
Debentures | -4% ₹390 Cr 3,900
↑ 3,900 EDELWEISS COMMODITIES SERVICES LIMITED
Debentures | -4% ₹372 Cr 7,500 EDELWEISS COMMODITIES SERVICES LIMITED
Debentures | -4% ₹360 Cr 3,650 Bharti Telecom Limited
Debentures | -3% ₹297 Cr 2,400 Renew Power Ventures Private Limited
Debentures | -3% ₹287 Cr 2,890 Piramal Enterprises Limited
Debentures | -3% ₹255 Cr 2,550 3. ICICI Prudential Ultra Short Term Fund
CAGR/Annualized return of 8.3% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2019 was 8.4% , 2018 was 7.5% and 2017 was 6.9% . ICICI Prudential Ultra Short Term Fund
Growth Launch Date 3 May 11 NAV (31 Jul 20) ₹20.8844 ↑ 0.00 (0.02 %) Net Assets (Cr) ₹5,571 on 30 Jun 20 Category Debt - Ultrashort Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.09 Sharpe Ratio 5.32 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 6.18% Effective Maturity 4 Months 10 Days Modified Duration 3 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,932 31 Jul 17 ₹11,882 31 Jul 18 ₹12,636 31 Jul 19 ₹13,702 Returns for ICICI Prudential Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jul 20 Duration Returns 1 Month 0.6% 3 Month 2.6% 6 Month 3.5% 1 Year 7.6% 3 Year 7.5% 5 Year 8.1% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2019 8.4% 2018 7.5% 2017 6.9% 2016 9.8% 2015 9.1% 2014 14.8% 2013 3.1% 2012 9.4% 2011 2010 Fund Manager information for ICICI Prudential Ultra Short Term Fund
Name Since Tenure Manish Banthia 15 Nov 16 3.63 Yr. Ritesh Lunawat 15 Jun 17 3.05 Yr. Data below for ICICI Prudential Ultra Short Term Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 55.26% Debt 44.74% Debt Sector Allocation
Sector Value Corporate 64.28% Cash Equivalent 34.91% Government 0.81% Credit Quality
Rating Value A 5.29% AA 41.81% AAA 52.89% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -8% ₹442 Cr MANAPPURAM FINANCE LIMITED
Debentures | -4% ₹205 Cr 2,000 JSW Energy Limited
Debentures | -4% ₹201 Cr 2,000 Rural Electrification Corporation Limited
Debentures | -3% ₹177 Cr 1,750 Tata Value Homes Limited
Debentures | -3% ₹152 Cr 1,500 Aspire Home Finance Corporation Limited
Debentures | -3% ₹151 Cr 1,500 84 DTB 20082020
Sovereign Bonds | -3% ₹149 Cr 15,000,000 AU Small Finance Bank Limited
Certificate of Deposit | -3% ₹147 Cr 15,000 Bharti Telecom Limited
Debentures | -2% ₹127 Cr 1,250 Bahadur Chand Investments Private Limited
Debentures | -2% ₹125 Cr 1,250 4. Kotak Savings Fund
CAGR/Annualized return of 7.8% since its launch. Ranked 44 in Ultrashort Bond category. Return for 2019 was 7.8% , 2018 was 7.4% and 2017 was 6.7% . Kotak Savings Fund
Growth Launch Date 13 Aug 04 NAV (31 Jul 20) ₹32.9374 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹9,189 on 30 Jun 20 Category Debt - Ultrashort Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆ Risk Moderately Low Expense Ratio 0.68 Sharpe Ratio 8.26 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 4.27% Effective Maturity 6 Months 7 Days Modified Duration 6 Months Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,826 31 Jul 17 ₹11,643 31 Jul 18 ₹12,399 31 Jul 19 ₹13,417 Returns for Kotak Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jul 20 Duration Returns 1 Month 0.5% 3 Month 2.1% 6 Month 3.6% 1 Year 7.1% 3 Year 7.3% 5 Year 7.5% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2019 7.8% 2018 7.4% 2017 6.7% 2016 8.2% 2015 8.6% 2014 9.4% 2013 8.9% 2012 9.6% 2011 9.2% 2010 5.7% Fund Manager information for Kotak Savings Fund
Name Since Tenure Deepak Agrawal 15 Apr 08 12.22 Yr. Data below for Kotak Savings Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 34.55% Debt 65.45% Debt Sector Allocation
Sector Value Corporate 42.86% Cash Equivalent 28.42% Government 24.91% Securitized 3.81% Credit Quality
Rating Value AA 10.67% AAA 89.33% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -6% ₹557 Cr 5,520
↑ 5,500 Triparty Repo
CBLO/Reverse Repo | -6% ₹508 Cr Export-Import Bank Of India
Commercial Paper | -5% ₹493 Cr 10,000
↑ 10,000 HDB Financial Services Limited
Debentures | -5% ₹491 Cr 4,000
↑ 4,000 Bharti Telecom Limited
Debentures | -5% ₹448 Cr 4,400
↑ 1,400 Kotak Mahindra Prime Limited
Debentures | -4% ₹368 Cr 3,000
↑ 3,000 BAJAJ HOUSING FINANCE LIMITED
Debentures | -4% ₹346 Cr 3,000
↑ 3,000 08.04 CG SDL 2020
Sovereign Bonds | -4% ₹334 Cr 32,925,000 8.55% U.P. GS 2020
Sovereign Bonds | -3% ₹305 Cr 30,000,000 National Bank For Agriculture And Rural Development
Certificate of Deposit | -3% ₹289 Cr 30,000
↑ 30,000 5. SBI Magnum Ultra Short Duration Fund
CAGR/Annualized return of 7.4% since its launch. Return for 2019 was 8% , 2018 was 7.9% and 2017 was 6.6% . SBI Magnum Ultra Short Duration Fund
Growth Launch Date 21 May 99 NAV (31 Jul 20) ₹4,564.45 ↑ 1.17 (0.03 %) Net Assets (Cr) ₹9,750 on 30 Jun 20 Category Debt - Ultrashort Bond AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.28 Sharpe Ratio 8.96 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 4.17% Effective Maturity 6 Months 18 Days Modified Duration 6 Months Growth of 10,000 investment over the years.
Date Value 31 Jul 15 ₹10,000 31 Jul 16 ₹10,803 31 Jul 17 ₹11,539 31 Jul 18 ₹12,359 31 Jul 19 ₹13,404 Returns for SBI Magnum Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jul 20 Duration Returns 1 Month 0.5% 3 Month 2.1% 6 Month 3.6% 1 Year 7.2% 3 Year 7.6% 5 Year 7.5% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2019 8% 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% Fund Manager information for SBI Magnum Ultra Short Duration Fund
Name Since Tenure Rajeev Radhakrishnan 1 May 10 10.17 Yr. Data below for SBI Magnum Ultra Short Duration Fund as on 30 Jun 20
Asset Allocation
Asset Class Value Cash 71.29% Debt 28.71% Debt Sector Allocation
Sector Value Corporate 46% Cash Equivalent 43.59% Government 9.38% Securitized 1.02% Credit Quality
Rating Value AA 2.98% AAA 97.02% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 24092020
Sovereign Bonds | -10% ₹993 Cr 100,000,000
↑ 100,000,000 Rural Electrification Corporation Limited
Debentures | -8% ₹738 Cr 7,250 84 DTB 20082020
Sovereign Bonds | -7% ₹697 Cr 70,000,000 POWER FINANCE CORPORATION LIMITED
Debentures | -4% ₹429 Cr 4,250 Housing Development Finance Corporation Limited
Debentures | -4% ₹383 Cr 3,750 Export-Import Bank Of India
Certificate of Deposit | -4% ₹361 Cr 37,500
↑ 37,500 Andhra Bank
Certificate of Deposit | -4% ₹342 Cr 35,000 Nabha Power Limited
Commercial Paper | -3% ₹297 Cr 6,000
↑ 6,000 Axis Bank Limited
Certificate of Deposit | -3% ₹296 Cr 30,000 LIC Housing Finance Limited
Commercial Paper | -3% ₹296 Cr 6,000
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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good information on funds. appreciated!!!