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 (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity PGIM India Insta Cash Fund Growth ₹254.212
↑ 0.03 ₹476 1.3 2.8 6.6 6.9 6.7 5.18% 1M 10D 1M 10D JM Liquid Fund Growth ₹53.4603
↑ 0.01 ₹1,037 1.3 2.8 6.5 6.9 6.6 5.51% 30D 30D Indiabulls Liquid Fund Growth ₹1,903.89
↑ 0.27 ₹893 1.3 2.8 6.4 6.8 6.6 5.32% 23D 25D Principal Cash Management Fund Growth ₹1,732.04
↑ 0.24 ₹198 1.2 2.7 6.1 3.6 6.2 5.21% 7D 8D Nippon India Liquid Fund Growth ₹4,768.12
↑ 0.67 ₹33,274 1.3 2.8 6.6 6.9 6.7 5.33% 1M 6D 1M 9D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Jan 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.
(Erstwhile Reliance Liquid Fund - Cash Plan) The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. Nippon India Ultra Short Duration Fund is a Debt - Ultrashort Bond fund was launched on 7 Dec 01. It is a fund with Low risk and has given a Below is the key information for Nippon India Ultra Short Duration 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 The objective of the Scheme will be to provide investors with regular income for their investment by investing in debt and money market instruments with relatively lower interest rate risk, such that the Macaulay duration of the portfolio is maintained between 3 months to 6 months. However, there can be no assurance that the investment objective of the Scheme will be realized. IDBI Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 3 Sep 10. It is a fund with Moderately Low risk and has given a Below is the key information for IDBI Ultra Short Term Fund 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 UTI - Floating Rate Fund - Short Term Plan) To generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments, fixed rate debt / money market instruments swapped for floating rate returns. The Scheme may also invest a portion of its net assets in fixed rate debt securities and money market instruments .However there can be no assurance that the investment objective of the Scheme will be achieved. The Scheme does not guarantee / indicate any returns. UTI Ultra Short Term Fund is a Debt - Ultrashort Bond fund was launched on 29 Aug 03. It is a fund with Moderately Low risk and has given a Below is the key information for UTI 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 Aditya Birla Sun Life Savings Fund Growth ₹392.902
↑ 0.09 ₹15,871 1.6 3.7 8.3 7.6 8.5 5.98% 4M 17D 5M 1D Franklin India Ultra Short Bond Fund - Super Institutional Plan Growth ₹26.9759
↑ 0.01 ₹16,882 -2.2 0 4.6 7.2 9.6 10.48% 6M 7M 15D Indiabulls Ultra Short Term Fund Growth ₹1,913.51
↑ 0.17 ₹37 1.4 3.1 7.4 7.1 7.6 0% BOI AXA Ultra Short Duration Fund Growth ₹2,391.24
↑ 0.30 ₹348 1.4 3.3 7.3 7.6 7.5 5.59% 5M 12D 5M 25D UTI Ultra Short Term Fund Growth ₹3,080.65
↑ 0.62 ₹2,427 1.6 3.4 3.2 5.6 3.3 7.28% 2M 29D 4M 3D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Jan 20 1. Nippon India Ultra Short Duration Fund
CAGR/Annualized return of 6% since its launch. Ranked 62 in Ultrashort Bond category. Return for 2019 was 0.9% , 2018 was 7.3% and 2017 was 5.8% . Nippon India Ultra Short Duration Fund
Growth Launch Date 7 Dec 01 NAV (17 Jan 20) ₹2,883.99 ↑ 1.33 (0.05 %) Net Assets (Cr) ₹2,023 on 30 Nov 19 Category Debt - Ultrashort Bond AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Low Expense Ratio 1.09 Sharpe Ratio -0.45 Information Ratio 0 Alpha Ratio 0 Min Investment 100 Min SIP Investment 100 Exit Load NIL Yield to Maturity 8.86% Effective Maturity 5 Months 27 Days Modified Duration 5 Months 1 Day Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,764 31 Dec 16 ₹11,497 31 Dec 17 ₹12,165 31 Dec 18 ₹13,056 31 Dec 19 ₹13,170 Returns for Nippon India Ultra Short Duration Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month -0.8% 1 Year 0.8% 3 Year 4.7% 5 Year 5.7% 10 Year 15 Year Since launch 6% Historical performance (Yearly) on absolute basis
Year Returns 2018 0.9% 2017 7.3% 2016 5.8% 2015 6.8% 2014 7.6% 2013 8.4% 2012 8.5% 2011 9.2% 2010 9% 2009 4.5% Fund Manager information for Nippon India Ultra Short Duration Fund
Name Since Tenure Anju Chhajer 1 Oct 13 6.25 Yr. Vivek Sharma 1 Oct 13 6.25 Yr. Kinjal Desai 25 May 18 1.6 Yr. Data below for Nippon India Ultra Short Duration Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 29.21% Debt 70.78% Other 0.01% Debt Sector Allocation
Sector Value Corporate 86.23% Cash Equivalent 13.76% Credit Quality
Rating Value A 11.34% AA 58.61% AAA 27.34% BBB 1.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity Indian Hospitals Corporation Limited
Debentures | -10% ₹205 Cr 1,828 Piramal Enterprises Limited
Debentures | -8% ₹170 Cr 1,730 Durg Shivnath Expressways Private Limited
Debentures | -7% ₹151 Cr 1,500 Triparty Repo
CBLO/Reverse Repo | -7% ₹135 Cr AXIS BANK LIMITED
Certificate of Deposit | -6% ₹125 Cr 12,500 U.P. Power Corporation Limited
Debentures | -6% ₹115 Cr 1,150
↑ 1,150 Panchshil Corporate Park Private Limited
Debentures | -5% ₹110 Cr 110 Northern Arc Capital Limited
Debentures | -5% ₹101 Cr 1,000 Vedanta Limited
Commercial Paper | -5% ₹99 Cr 2,000 INOX Wind Infrastructure Services Limited
Debentures | -5% ₹91 Cr 2,739 2. ICICI Prudential Ultra Short Term Fund
CAGR/Annualized return of 8.4% 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 (17 Jan 20) ₹20.1164 ↑ 0.00 (0.02 %) Net Assets (Cr) ₹6,829 on 30 Nov 19 Category Debt - Ultrashort Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.09 Sharpe Ratio 10.36 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 7.47% Effective Maturity 5 Months 5 Days Modified Duration 4 Months 20 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,912 31 Dec 16 ₹11,984 31 Dec 17 ₹12,815 31 Dec 18 ₹13,775 31 Dec 19 ₹14,936 Returns for ICICI Prudential Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 1 Month 0.6% 3 Month 1.9% 6 Month 3.9% 1 Year 8.3% 3 Year 7.5% 5 Year 8.3% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 8.4% 2017 7.5% 2016 6.9% 2015 9.8% 2014 9.1% 2013 14.8% 2012 3.1% 2011 9.4% 2010 2009 Fund Manager information for ICICI Prudential Ultra Short Term Fund
Name Since Tenure Manish Banthia 15 Nov 16 3.04 Yr. Ritesh Lunawat 15 Jun 17 2.46 Yr. Data below for ICICI Prudential Ultra Short Term Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 40.89% Debt 59.11% Debt Sector Allocation
Sector Value Corporate 70.8% Cash Equivalent 26.29% Government 2.91% Credit Quality
Rating Value A 5.79% AA 55.56% AAA 38.65% Top Securities Holdings / Portfolio
Name Holding Value Quantity National Bank For Agriculture And Rural Development
Debentures | -4% ₹266 Cr 2,650 Treps
CBLO/Reverse Repo | -3% ₹209 Cr NIRCHEM Cement Limited
Debentures | -3% ₹208 Cr 2,060 MANAPPURAM FINANCE LIMITED
Debentures | -3% ₹201 Cr 2,000 JSW Energy Limited
Debentures | -3% ₹200 Cr 2,000
↑ 2,000 NABHA POWER LIMITED
Debentures | -2% ₹166 Cr 1,650 JSW Steel Limited
Debentures | -2% ₹160 Cr 1,595 Ashoka Buildcon Ltd.
Debentures | -2% ₹151 Cr 1,500 Tata Value Homes Limited
Debentures | -2% ₹150 Cr 1,500 Bahadur Chand Investments Private Limited
Debentures | -2% ₹150 Cr 1,500 3. IDBI Ultra Short Term Fund
CAGR/Annualized return of 8% since its launch. Ranked 78 in Ultrashort Bond category. Return for 2019 was 6.9% , 2018 was 6.9% and 2017 was 5.8% . IDBI Ultra Short Term Fund
Growth Launch Date 3 Sep 10 NAV (17 Jan 20) ₹2,050.62 ↑ 0.29 (0.01 %) Net Assets (Cr) ₹196 on 30 Nov 19 Category Debt - Ultrashort Bond AMC IDBI Asset Management Limited Rating ☆ Risk Moderately Low Expense Ratio 0.89 Sharpe Ratio 0.63 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.66% Effective Maturity 5 Months 27 Days Modified Duration 4 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,784 31 Dec 16 ₹11,632 31 Dec 17 ₹12,306 31 Dec 18 ₹13,156 31 Dec 19 ₹14,063 Returns for IDBI Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 7.9% 1 Year 6.8% 3 Year 6.5% 5 Year 7% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 2018 6.9% 2017 6.9% 2016 5.8% 2015 7.9% 2014 7.8% 2013 8.7% 2012 9.2% 2011 9.7% 2010 9.3% 2009 Fund Manager information for IDBI Ultra Short Term Fund
Name Since Tenure Bhupesh Kalyani 1 Feb 17 2.75 Yr. Data below for IDBI Ultra Short Term Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 77.43% Debt 22.57% Debt Sector Allocation
Sector Value Cash Equivalent 69.8% Corporate 20.48% Government 9.72% Credit Quality
Rating Value A 22.81% AA 54.13% AAA 23.06% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -60% ₹117 Cr 11,688,871
↑ 735,102 Punjab National Bank
Debentures | -9% ₹17 Cr 1,700,000 J.K.Cement Limited
Debentures | -8% ₹15 Cr 2,500,000 THE TATA POWER COMPANY LIMITED
Commercial Paper | -8% ₹15 Cr 1,500,000
↑ 1,500,000 ECL Finance Limited
Debentures | -8% ₹15 Cr 1,500,000 Vedanta Limited
Debentures | -3% ₹6 Cr 650,000
↑ 250,000 Net Receivable / Payable
Net Current Assets | -3% ₹5 Cr Axis Bank Limited
Debentures | -2% ₹3 Cr 300,000 Housing And Urban Development Corporation Ltd.
Debentures | -1% ₹2 Cr 200,000 J.K.Cement Limited
Debentures | -0% ₹1 Cr 200,000 4. 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 (17 Jan 20) ₹392.902 ↑ 0.09 (0.02 %) Net Assets (Cr) ₹15,871 on 30 Nov 19 Category Debt - Ultrashort Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.35 Sharpe Ratio 9.86 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.98% Effective Maturity 5 Months 1 Day Modified Duration 4 Months 17 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,889 31 Dec 16 ₹11,895 31 Dec 17 ₹12,751 31 Dec 18 ₹13,724 31 Dec 19 ₹14,885 Returns for Aditya Birla Sun Life Savings Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.7% 1 Year 8.3% 3 Year 7.6% 5 Year 8.3% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2018 8.5% 2017 7.6% 2016 7.2% 2015 9.2% 2014 8.9% 2013 9.7% 2012 9.5% 2011 9.7% 2010 9.2% 2009 5.8% Fund Manager information for Aditya Birla Sun Life Savings Fund
Name Since Tenure Sunaina Cunha 11 Oct 14 4.98 Yr. Kaustubh Gupta 15 Jul 11 8.22 Yr. Data below for Aditya Birla Sun Life Savings Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 53.03% Debt 46.97% Debt Sector Allocation
Sector Value Corporate 54.16% Cash Equivalent 25.93% Government 19.16% Securitized 0.76% Credit Quality
Rating Value AA 11.55% AAA 88.45% Top Securities Holdings / Portfolio
Name Holding Value Quantity IndusInd Bank Limited
Certificate of Deposit | -4% ₹639 Cr 65,000
↑ 65,000 8.39% RJ SDL Spl 2020
Domestic Bonds | -3% ₹553 Cr 54,845,000
↑ 48,345,000 Steel Authority Of India Limited
Commercial Paper | -3% ₹495 Cr 10,000
↑ 10,000 Power Finance Corporation Ltd.
Debentures | -3% ₹469 Cr 4,650 IndusInd Bank Limited
Certificate of Deposit | -3% ₹439 Cr 45,000
↑ 45,000 Net Receivables / (Payables)
Net Current Assets | -3% ₹435 Cr Rural Electrification Corporation Limited
Debentures | -3% ₹429 Cr 4,263 Bharti Telecom Limited
Debentures | -3% ₹404 Cr 3,500 Reliance Jio Infocomm Limited
Commercial Paper | -2% ₹397 Cr 8,000
↑ 8,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹387 Cr 3,850
↓ -1,500 5. UTI Ultra Short Term Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 27 in Ultrashort Bond category. Return for 2019 was 3.3% , 2018 was 7% and 2017 was 6.6% . UTI Ultra Short Term Fund
Growth Launch Date 29 Aug 03 NAV (17 Jan 20) ₹3,080.65 ↑ 0.62 (0.02 %) Net Assets (Cr) ₹2,427 on 30 Nov 19 Category Debt - Ultrashort Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.99 Sharpe Ratio 0.05 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 2,500 Exit Load NIL Yield to Maturity 7.28% Effective Maturity 4 Months 3 Days Modified Duration 2 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,851 31 Dec 16 ₹11,813 31 Dec 17 ₹12,598 31 Dec 18 ₹13,482 31 Dec 19 ₹13,923 Returns for UTI Ultra Short Term Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 1 Month 0.5% 3 Month 1.6% 6 Month 3.4% 1 Year 3.2% 3 Year 5.6% 5 Year 6.8% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2018 3.3% 2017 7% 2016 6.6% 2015 8.9% 2014 8.5% 2013 8.8% 2012 9.8% 2011 9% 2010 8.2% 2009 5.4% Fund Manager information for UTI Ultra Short Term Fund
Name Since Tenure Sudhir Agarwal 1 Jul 15 4.42 Yr. Ritesh Nambiar 1 Jul 15 4.42 Yr. Data below for UTI Ultra Short Term Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 81.54% Debt 18.46% Debt Sector Allocation
Sector Value Cash Equivalent 48.18% Corporate 41.69% Government 10.13% Credit Quality
Rating Value A 13.14% AA 17.89% AAA 68.97% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -27% ₹647 Cr 00 Avanse Financial Services Limited
Debentures | -10% ₹232 Cr 2,350 Edelweiss Commodities Services Limited
Debentures | -8% ₹198 Cr 2,000 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -8% ₹193 Cr 2,000,000,000 Andhra Bank
Certificate of Deposit | -5% ₹123 Cr 1,250,000,000 AXIS BANK LIMITED
Certificate of Deposit | -4% ₹100 Cr 1,000,000,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Certificate of Deposit | -4% ₹99 Cr 1,000,000,000
↓ -250,000,000 IndusInd Bank Limited
Certificate of Deposit | -4% ₹99 Cr 1,000,000,000 SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Certificate of Deposit | -3% ₹75 Cr 750,000,000 National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹74 Cr 750,000,000
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