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Top 5 Best Low Risk Mutual Funds to Invest in 2019

Updated on June 20, 2019 , 1490 views

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.

low-risk-mf

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.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2018 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
DHFL Pramerica Insta Cash Fund Growth ₹245.974
↑ 0.03
₹8911.93.77.67.27.47.13%1M 13D1M 13D
JM Liquid Fund Growth ₹51.7751
↑ 0.01
₹2,3511.93.77.57.27.47.25%1M 28D1M 28D
Indiabulls Liquid Fund Growth ₹1,843.95
↑ 0.32
₹4,7351.83.67.47.17.30%
Principal Cash Management Fund Growth ₹1,679.59
↑ 0.54
₹2461.73.4-23.9-1.86.89%21D22D
Reliance Liquid Fund  Growth ₹4,613.53
↑ 0.75
₹34,4221.93.77.67.17.40%
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Jun 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.

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2018 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹26.8006
↓ 0.00
₹18,3372.34.89.78.98.70%6M 18D
Aditya Birla Sun Life Savings Fund Growth ₹375.912
↑ 0.05
₹15,3872.24.48.67.97.68.44%5M 26D6M 18D
BOI AXA Ultra Short Duration Fund Growth ₹2,300.14
↑ 0.35
₹29823.97.98.17.68.09%4M 20D5M 6D
Indiabulls Ultra Short Term Fund Growth ₹1,843.96
↑ 0.11
₹4912.14.27.97.67.10%
UTI Ultra Short Term Fund Growth ₹2,965.66
↑ 0.42
₹5,226-1.803.6679.35%3M 19D4M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Jun 19

1. Franklin India Ultra Short Bond Fund - Super Institutional Plan

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 CAGR/Annualized return of 8.9% since its launch.  Return for 2018 was 8.7% , 2017 was 8.2% and 2016 was 9.7% .

Below is the key information for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Franklin India Ultra Short Bond Fund - Super Institutional Plan
Growth
Launch Date 18 Dec 07
NAV (21 Jun 19) ₹26.8006 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹18,337 on 30 Apr 19
Category Debt - Ultrashort Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.37
Sharpe Ratio 9.05
Information Ratio 3.51
Alpha Ratio -1.24
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 0%
Effective Maturity 6 Months 18 Days
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹10,974
31 May 16₹12,033
31 May 17₹13,162
31 May 18₹14,170
31 May 19₹15,555

Franklin India Ultra Short Bond Fund - Super Institutional Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹209,201.
Net Profit of ₹29,201
Invest Now

Returns for Franklin India Ultra Short Bond Fund - Super Institutional Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jun 19

DurationReturns
1 Month 0.8%
3 Month 2.3%
6 Month 4.8%
1 Year 9.7%
3 Year 8.9%
5 Year 9.2%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Santosh Kamath25 Oct 180.43 Yr.
Pallab Roy1 Jun 0810.84 Yr.

Data below for Franklin India Ultra Short Bond Fund - Super Institutional Plan as on 30 Apr 19

Asset Allocation
Asset ClassValue
Cash19.13%
Debt77.51%
Other3.35%
Debt Sector Allocation
SectorValue
Corporate78.3%
Cash Equivalent16.47%
Government1.87%
Credit Quality
RatingValue
A34.68%
AA41.74%
AAA23.58%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Vodafone Mobile Services Limited
Debentures | -
4%₹768 Cr7,990
Renew Power Ventures Private Limited
Debentures | -
4%₹673 Cr6,740
Call, Cash & Other Assets
Receivables | -
3%₹615 Cr
ONGC Petro Additions Limited
Debentures | -
3%₹500 Cr500
Indostar Capital Finance Limited
Debentures | -
2%₹441 Cr4,400
INDOSTAR CAPITAL FINANCE LIMITED
Debentures | -
2%₹391 Cr3,900
↑ 3,900
EDELWEISS COMMODITIES SERVICES LIMITED
Debentures | -
2%₹375 Cr7,500
EDELWEISS COMMODITIES SERVICES LIMITED
Debentures | -
2%₹365 Cr3,650
Yes Capital (India) Private Limited
Debentures | -
2%₹352 Cr3,037
Piramal Realty Private Limited
Debentures | -
2%₹351 Cr3,500

2. Aditya Birla Sun Life Savings Fund

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 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% .

Below is the key information for Aditya Birla Sun Life Savings Fund

Aditya Birla Sun Life Savings Fund
Growth
Launch Date 16 Apr 03
NAV (21 Jun 19) ₹375.912 ↑ 0.05   (0.01 %)
Net Assets (Cr) ₹15,387 on 30 Apr 19
Category Debt - Ultrashort Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.35
Sharpe Ratio 9.37
Information Ratio 0.61
Alpha Ratio 3.2
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 8.44%
Effective Maturity 6 Months 18 Days
Modified Duration 5 Months 26 Days

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹10,922
31 May 16₹11,908
31 May 17₹12,918
31 May 18₹13,782
31 May 19₹14,986

Aditya Birla Sun Life Savings Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Aditya Birla Sun Life Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jun 19

DurationReturns
1 Month 0.7%
3 Month 2.2%
6 Month 4.4%
1 Year 8.6%
3 Year 7.9%
5 Year 8.4%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Sunaina Cunha11 Oct 144.31 Yr.
Kaustubh Gupta15 Jul 117.55 Yr.

Data below for Aditya Birla Sun Life Savings Fund as on 30 Apr 19

Asset Allocation
Asset ClassValue
Cash40.33%
Debt59.67%
Debt Sector Allocation
SectorValue
Corporate42.42%
Cash Equivalent40.17%
Government13.09%
Securitized4.33%
Credit Quality
RatingValue
A5.5%
AA16.64%
AAA77.86%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Vodafone Mobile Services Limited
Debentures | -
5%₹800 Cr8,050
Net Receivables / (Payables)
Net Current Assets | -
3%₹461 Cr
ONGC Petro Additions Limited
Debentures | -
3%₹460 Cr460
PNB Housing Finance Limited
Debentures | -
3%₹397 Cr4,000
PIRAMAL CAPITAL & HOUSING FINANCE LIMITED
Commercial Paper | -
2%₹374 Cr7,500
NRSS XXIX TRANSMISSION LIMITED
Debentures | -
2%₹351 Cr3,500
Shriram Transport Finance Company Limited
Debentures | -
2%₹349 Cr3,500
IndusInd Bank Limited
Certificate of Deposit | -
2%₹336 Cr35,000
Reliance Industries Limited
Debentures | -
2%₹310 Cr3,150
AXIS BANK LIMITED
Certificate of Deposit | -
2%₹305 Cr32,500

3. ICICI Prudential Ultra Short Term Fund

(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 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% .

Below is the key information for ICICI Prudential Ultra Short Term Fund

ICICI Prudential Ultra Short Term Fund
Growth
Launch Date 3 May 11
NAV (21 Jun 19) ₹19.2141 ↑ 0.00   (0.02 %)
Net Assets (Cr) ₹4,597 on 30 Apr 19
Category Debt - Ultrashort Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.56
Sharpe Ratio 8.28
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 8.84%
Effective Maturity 6 Months 18 Days
Modified Duration 4 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹11,265
31 May 16₹12,294
31 May 17₹13,409
31 May 18₹14,289
31 May 19₹15,477

ICICI Prudential Ultra Short Term Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for ICICI Prudential Ultra Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jun 19

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 4.2%
1 Year 8.3%
3 Year 8%
5 Year 9%
10 Year
15 Year
Since launch 8.4%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Manish Banthia15 Nov 162.37 Yr.
Ritesh Lunawat15 Jun 171.79 Yr.

Data below for ICICI Prudential Ultra Short Term Fund as on 30 Apr 19

Asset Allocation
Asset ClassValue
Cash40.59%
Debt59.41%
Debt Sector Allocation
SectorValue
Corporate55.6%
Cash Equivalent36.86%
Government7.54%
Credit Quality
RatingValue
A6.55%
AA57.45%
AAA36%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
8%₹358 Cr
National Bank For Agriculture And Rural Development
Debentures | -
6%₹266 Cr2,650
↑ 1,650
Writers And Publishers Private Limited
Debentures | -
4%₹196 Cr1,950
JSW Steel Limited
Debentures | -
3%₹161 Cr1,595
Ashoka Buildcon Ltd.
Debentures | -
3%₹151 Cr1,500
Bahadur Chand Investments Private Limited
Debentures | -
3%₹151 Cr1,500
Aspire Home Finance Corporation Limited
Debentures | -
3%₹150 Cr1,500
Tata Realty And Infrastructure Limited
Debentures | -
3%₹150 Cr1,500
Manappuram Finance Limited
Debentures | -
3%₹148 Cr1,481
NIRCHEM Cement Limited
Debentures | -
3%₹147 Cr1,465

4. Indiabulls Ultra Short Term Fund

To provide liquidity with returns commensurate with low risk through a portfolio of money market and debt securities. However, there can be no assurance that the investment objective of the scheme will be achieved.

Indiabulls Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 6 Jan 12. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.6% since its launch.  Ranked 17 in Ultrashort Bond category.  Return for 2018 was 7.1% , 2017 was 6.9% and 2016 was 8.8% .

Below is the key information for Indiabulls Ultra Short Term Fund

Indiabulls Ultra Short Term Fund
Growth
Launch Date 6 Jan 12
NAV (21 Jun 19) ₹1,843.96 ↑ 0.11   (0.01 %)
Net Assets (Cr) ₹491 on 30 Apr 19
Category Debt - Ultrashort Bond
AMC Indiabulls Asset Management Company Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.71
Sharpe Ratio 8.21
Information Ratio 0.96
Alpha Ratio -0.74
Min Investment 500
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 0%
Effective Maturity
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹10,927
31 May 16₹11,861
31 May 17₹12,845
31 May 18₹13,697
31 May 19₹14,787

Indiabulls Ultra Short Term Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Indiabulls Ultra Short Term Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jun 19

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 4.2%
1 Year 7.9%
3 Year 7.6%
5 Year 8.1%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2018 7.1%
2017 6.9%
2016 8.8%
2015 8.8%
2014 9.3%
2013 8.8%
2012
2011
2010
2009
Fund Manager information for Indiabulls Ultra Short Term Fund
NameSinceTenure
Malay Shah22 Aug 144.52 Yr.
Sourabh Sharma17 Jan 190.12 Yr.

Data below for Indiabulls Ultra Short Term Fund as on 30 Apr 19

Asset Allocation
Asset ClassValue
Cash83.86%
Debt16.14%
Debt Sector Allocation
SectorValue
Cash Equivalent77.03%
Corporate22.97%
Credit Quality
RatingValue
AA12.9%
AAA87.1%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Receivable/Payable
Net Current Assets | -
38%₹46 Cr
State Bank Of Patiala
Debentures | -
12%₹14 Cr1,420,000
Bank Of Baroda
Certificate of Deposit | -
12%₹14 Cr1,500,000
↓ -1,000,000
TALWANDI SABO POWER LTD
Debentures | -
8%₹10 Cr1,000,000
↓ -4,000,000
Indiabulls Housing Finance Limited
Debentures | -
8%₹10 Cr1,000,000
↓ -1,500,000
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -
8%₹9 Cr1,000,000
Treps 03-June-2019
CBLO/Reverse Repo | -
6%₹7 Cr714,000
↑ 714,000
Tata Capital Financial Services Limited
Debentures | -
4%₹5 Cr500,000
↓ -2,000,000
LIC Housing Finance Limited
Debentures | -
3%₹3 Cr300,000

5. SBI Magnum Ultra Short Duration Fund

(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 CAGR/Annualized return of 7.4% since its launch.  Return for 2018 was 7.9% , 2017 was 6.6% and 2016 was 7.7% .

Below is the key information for SBI Magnum Ultra Short Duration Fund

SBI Magnum Ultra Short Duration Fund
Growth
Launch Date 21 May 99
NAV (21 Jun 19) ₹4,215.25 ↑ 0.49   (0.01 %)
Net Assets (Cr) ₹8,143 on 30 Apr 19
Category Debt - Ultrashort Bond
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.22
Sharpe Ratio 11.66
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment
Exit Load NIL
Yield to Maturity 7.48%
Effective Maturity 4 Months 24 Days
Modified Duration 4 Months 13 Days

Growth of 10,000 investment over the years.

DateValue
31 May 14₹10,000
31 May 15₹10,882
31 May 16₹11,768
31 May 17₹12,587
31 May 18₹13,443
31 May 19₹14,583

SBI Magnum Ultra Short Duration Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for SBI Magnum Ultra Short Duration Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 21 Jun 19

DurationReturns
1 Month 0.7%
3 Month 2%
6 Month 4.1%
1 Year 8.3%
3 Year 7.4%
5 Year 7.8%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Rajeev Radhakrishnan1 May 109 Yr.

Data below for SBI Magnum Ultra Short Duration Fund as on 30 Apr 19

Asset Allocation
Asset ClassValue
Cash73.87%
Debt26.13%
Debt Sector Allocation
SectorValue
Cash Equivalent73.87%
Corporate20.54%
Government4.63%
Securitized0.95%
Credit Quality
RatingValue
AA7.65%
AAA92.35%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -
5%₹467 Cr50,000
↑ 50,000
CITICORP FINANCE (INDIA) LIMITED
Debentures | -
3%₹300 Cr3,000
BAJAJ FINANCE LIMITED
Commercial Paper | -
3%₹296 Cr6,000
↑ 6,000
ANDHRA BANK
Certificate of Deposit | -
3%₹281 Cr30,000
↑ 30,000
Indian Oil Corporation Limited
Commercial Paper | -
3%₹250 Cr5,000
Axis Bank Limited
Certificate of Deposit | -
3%₹237 Cr25,000
BANK OF BARODA
Certificate of Deposit | -
3%₹234 Cr25,000
↑ 25,000
Novy MIR Lightweighting Solutions Private Limited
Debentures | -
2%₹211 Cr42
LIC Housing Finance Limited
Debentures | -
2%₹200 Cr2,000
Axis Bank Limited
Certificate of Deposit | -
2%₹197 Cr20,000
↑ 20,000

Disclaimer:
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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