Best Low Risk Mutual Funds For Long Term In India English

Best Low Risk Mutual Funds For Long Term In India

The below table shows the Best Low Risk Mutual Funds For the Long Term In India based on AUM, NAV, and minimum SIP.

NameAUM (Cr)NAV (Rs)Minimum SIP (Rs)
ICICI Pru Balanced Advantage Fund56174.6471.720
ICICI Pru Multi-Asset Fund36843.05708.07500
ICICI Pru Equity & Debt Fund32429.17376.11100
Edelweiss Balanced Advantage Fund10622.5551.73100
Mirae Asset Aggressive Hybrid Fund8400.9332.180
Nippon India Balanced Advantage Fund7719.3176.031500
SBI Multi Asset Allocation Fund4229.7956.945000
ICICI Pru Regular Savings Fund3396.6873.515000
DSP Dynamic Asset Allocation Fund3124.727.14100
Kotak Debt Hybrid Fund2301.9759.81100
Bandhan Balanced Advantage Fund2220.3724.6100
Quant Multi Asset Fund1829.08135.790
Edelweiss Aggressive Hybrid Fund1440.3561.890
Franklin India Debt Hybrid Fund230.8988.67500

Content:

What are Mutual Funds For the Long Term?

Mutual funds for the long term are investment vehicles designed to accumulate wealth over an extended period. They invest in a diverse portfolio of assets, aiming to offer investors higher returns through compound interest and capital appreciation over years or even decades.

These funds typically include a mix of stocks, bonds, and other securities that balance growth potential and risk, adjusting their asset allocation as market conditions change. Long-term mutual funds are ideal for goals like retirement planning, where the investment horizon extends over many years.

Investing in long-term mutual funds is advantageous because it allows for the smoothing out of market volatility. Over extended periods, markets generally trend upward, which can help mitigate short-term fluctuations and enhance overall returns. This approach encourages investors to focus on long-term financial goals without reacting hastily to market shifts.

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Top Low Risk Mutual Funds For Long Term

The table below shows the Top Low Risk Mutual Funds For the Long Term based on the lowest to highest expense ratio.

NameExpense Ratio (%)Minimum SIP (Rs)
Edelweiss Aggressive Hybrid Fund0.240
Mirae Asset Aggressive Hybrid Fund0.420
Edelweiss Balanced Advantage Fund0.49100
Kotak Debt Hybrid Fund0.5100
SBI Multi Asset Allocation Fund0.585000
Nippon India Balanced Advantage Fund0.611500
ICICI Pru Multi-Asset Fund0.62500
Bandhan Balanced Advantage Fund0.7100
Franklin India Debt Hybrid Fund0.7500
Quant Multi Asset Fund0.760
ICICI Pru Balanced Advantage Fund0.810
DSP Dynamic Asset Allocation Fund0.84100
ICICI Pru Regular Savings Fund0.915000
ICICI Pru Equity & Debt Fund0.99100

Best Low Risk Mutual Funds For Long Term

The table below shows the Best Low Risk Mutual Funds For the Long Term based on the Highest 3Y CAGR. 

NameCAGR 3Y (Cr)Minimum SIP (Rs)
Quant Multi Asset Fund30.670
ICICI Pru Equity & Debt Fund27.34100
ICICI Pru Multi-Asset Fund26.13500
Edelweiss Aggressive Hybrid Fund22.460
SBI Multi Asset Allocation Fund17.095000
Mirae Asset Aggressive Hybrid Fund16.520
Edelweiss Balanced Advantage Fund15.29100
Nippon India Balanced Advantage Fund14.921500
ICICI Pru Balanced Advantage Fund14.540
Kotak Debt Hybrid Fund12.23100
Bandhan Balanced Advantage Fund11.55100
ICICI Pru Regular Savings Fund10.615000
DSP Dynamic Asset Allocation Fund10.61100
Franklin India Debt Hybrid Fund9.05500

Top Low Risk Mutual Funds For Long Term In India

The table below shows the Top Low Risk Mutual Funds For Long Term In India based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units

NameAMCExit Load (%)
Franklin India Debt Hybrid FundFranklin Templeton Asset Management (India) Private Limited0
Quant Multi Asset FundQuant Money Managers Limited1
ICICI Pru Equity & Debt FundICICI Prudential Asset Management Company Limited1
ICICI Pru Multi-Asset FundICICI Prudential Asset Management Company Limited1
Edelweiss Aggressive Hybrid FundEdelweiss Asset Management Limited1
SBI Multi Asset Allocation FundSBI Funds Management Limited1
Mirae Asset Aggressive Hybrid FundMirae Asset Investment Managers (India) Private Limited1
Edelweiss Balanced Advantage FundEdelweiss Asset Management Limited1
Nippon India Balanced Advantage FundNippon Life India Asset Management Limited1
ICICI Pru Balanced Advantage FundICICI Prudential Asset Management Company Limited1
Kotak Debt Hybrid FundKotak Mahindra Asset Management Company Limited1
Bandhan Balanced Advantage FundBandhan AMC Limited1
DSP Dynamic Asset Allocation FundDSP Investment Managers Private Limited1
ICICI Pru Regular Savings FundICICI Prudential Asset Management Company Limited1

Best Low Risk Mutual Funds For Long Term In India

The table below shows Best Low Risk Mutual Funds For the Long Term In India based on Absolute 1 Year Return and AMC.

NameAMCAbsolute Returns – 1Y (%)
Quant Multi Asset FundQuant Money Managers Limited50.45
ICICI Pru Equity & Debt FundICICI Prudential Asset Management Company Limited41.96
Edelweiss Aggressive Hybrid FundEdelweiss Asset Management Limited36.5
ICICI Pru Multi-Asset FundICICI Prudential Asset Management Company Limited35.24
SBI Multi Asset Allocation FundSBI Funds Management Limited30.29
Edelweiss Balanced Advantage FundEdelweiss Asset Management Limited27.85
Mirae Asset Aggressive Hybrid FundMirae Asset Investment Managers (India) Private Limited27.35
Nippon India Balanced Advantage FundNippon Life India Asset Management Limited26.1
ICICI Pru Balanced Advantage FundICICI Prudential Asset Management Company Limited22.79
Bandhan Balanced Advantage FundBandhan AMC Limited22.65
DSP Dynamic Asset Allocation FundDSP Investment Managers Private Limited21.87
Kotak Debt Hybrid FundKotak Mahindra Asset Management Company Limited17.59
ICICI Pru Regular Savings FundICICI Prudential Asset Management Company Limited15.72
Franklin India Debt Hybrid FundFranklin Templeton Asset Management (India) Private Limited15.06

Who Should Invest in Risk Mutual Funds For the Long Term?

Investors seeking stability and minimal risk exposure over an extended period should consider low-risk mutual funds for long-term investment. These funds are ideal for conservative investors, including retirees or those nearing retirement, who prioritize capital preservation over high returns.

Low-risk mutual funds typically invest in a blend of fixed-income securities, such as government bonds and high-grade corporate bonds, which offer predictable returns and lower volatility compared to stocks. This makes them suitable for investors who need a steady income stream and wish to avoid the ups and downs of the stock market.

Moreover, these funds are beneficial for individuals with a low-risk tolerance or those who cannot afford significant financial losses. By investing in low-risk mutual funds, individuals can achieve moderate growth while maintaining a secure financial base, making these funds an excellent choice for long-term financial planning without the stress of high-risk investments.

How To Invest in the Best Low Risk Mutual Funds For Long Term?

To invest in the best low-risk mutual funds for the long term, start by identifying funds with a strong track record of stability and consistent returns. Focus on funds that primarily invest in high-quality bonds or other fixed-income securities, which are less volatile than stocks.

Research is key. Look at the fund’s historical performance, the quality of the assets it holds, and its risk rating. Funds that consistently perform well in various market conditions while maintaining low volatility are preferable. Consider consulting financial advisors or using financial platforms for expert recommendations.

Next, decide on your investment approach. You can invest a lump sum or opt for a systematic investment plan (SIP), which involves investing a fixed amount regularly. SIPs are particularly effective for long-term investing as they compound returns and reduce the risk of market timing.

Performance Metrics Of Low Risk Mutual Funds For Long Term

Performance metrics of low-risk mutual funds for the long term include yield, average maturity, credit quality, and Sharpe ratio. These indicators help assess the fund’s return relative to its risk, providing investors with insights into potential income and stability over time.

Yield is a critical metric, reflecting the income return on an investment. For low-risk funds, a stable and competitive yield is indicative of good management and sound investment choices. It’s essential for investors relying on their investments for regular income, such as retirees.

The average maturity of the assets within the fund influences interest rate risk. Funds with longer average maturities are more sensitive to interest rate changes, which can affect returns. Investors should match the fund’s maturity profile with their investment horizon to minimize risk. Additionally, the credit quality of the bonds in the fund indicates the risk of default. Higher credit ratings (e.g., AAA) are associated with lower risk.

Benefits of Investing in Low Risk Mutual Funds For Long Term

The main benefits of investing in low-risk mutual funds for the long term include stable returns, reduced volatility, and lower potential for significant losses. These funds typically invest in high-quality bonds and other secure assets, making them ideal for conservative investors and those nearing retirement.

  • Steady Sailing: Low-risk mutual funds provide a stable investment environment by minimizing exposure to volatile markets. They focus on securities with lower risk, ensuring more predictable and steady returns, which is crucial for long-term financial planning.
  • Safety First: These funds invest in high-quality bonds and other secure instruments, which typically carry lower default risks. This focus on safety appeals to investors who prioritize capital preservation over high returns, particularly beneficial for retirees or risk-averse individuals.
  • Compounding Calm: Investing in low-risk mutual funds for the long term allows the power of compounding to work with less disruption from market volatility. This steady compounding can build wealth gradually and reliably, providing a significant advantage for long-term financial goals without the stress of dramatic market swings.

Challenges Of Investing In Low Risk Mutual Funds For Long Term

The main challenges of investing in low-risk mutual funds for the long term include lower potential returns compared to higher-risk investments. This conservative approach may not keep pace with inflation, potentially affecting the purchasing power of your investment over time.

  • Growth Limitations: Low-risk mutual funds typically offer modest returns because they invest in safer, more stable assets. For investors seeking substantial growth, these funds may not provide the high returns that riskier assets like stocks can offer.
  • Inflation Risk: Over long periods, the returns from low-risk mutual funds may not keep pace with inflation, diminishing the real value of the money invested. This is particularly concerning for long-term goals, where maintaining purchasing power is crucial.
  • Opportunity Cost: By choosing low-risk mutual funds, investors might miss out on potential high returns from more aggressive investments. This opportunity cost can be significant, especially in bullish market conditions where riskier assets significantly outperform conservative ones.

Introduction to  Best Low Risk Mutual Funds For Long Term In India 

ICICI Pru Balanced Advantage Fund

The ICICI Prudential Balanced Advantage Direct-Growth is a dynamic asset allocation mutual fund offered by ICICI Prudential Mutual Fund. It has been operational for over 11 years and three months since its inception on January 1, 2013.

The ICICI Pru Balanced Advantage Fund, a Balanced Advantage Fund, oversees an Asset Under Management (AUM) of 56,174.64(Cr). It has a five-year Compound Annual Growth Rate (CAGR) of 22.79%. The fund’s exit load is also 22.79%, and it has an expense ratio of 0.81. According to SEBI, it is categorized under the high-risk category. The asset allocation is structured as follows: 47.8% is invested in equity, 26.94% in debt, and 25.26% in other types of assets. This distribution provides a balanced approach to asset management.

ICICI Pru Multi-Asset Fund

The ICICI Prudential Multi Asset Fund Direct-Growth is a multi-asset allocation mutual fund scheme offered by ICICI Prudential Mutual Fund. It was established on January 1, 2013, and has been active for 11 years and three months.

The ICICI Pru Multi-Asset Fund falls under the Multi-Asset Allocation Fund category and manages an Asset Under Management (AUM) of 36,843.05(Cr). It has recorded a Compound Annual Growth Rate (CAGR) of 35.24% over the past five years. The fund has an exit load of 35.24% and an expense ratio of 0.62. It is classified in the SEBI risk category as Very High. The asset allocation is distributed as follows: Equity investments account for 57.85%, debt comprises 19%, and other assets make up 23.15% of the total.

ICICI Pru Equity & Debt Fund

The ICICI Prudential Equity & Debt Fund Direct-Growth is an Aggressive Hybrid mutual fund offered by ICICI Prudential Mutual Fund. This fund was initiated on January 1, 2013, and has been operational for over 11 years and three months.

The ICICI Pru Equity & Debt Fund, classified as an Aggressive Hybrid Fund, holds Assets Under Management (AUM) totaling 32,429.17(Cr). Over the last five years, it has achieved a Compound Annual Growth Rate (CAGR) of 41.96%. The fund has an exit load of 41.96% and maintains an expense ratio of 0.99. It is rated Very High in the SEBI risk category. The asset allocation is distributed as follows: Equity assets constitute 74% of the total, debt assets account for 19.71%, and other types of assets make up 6.28%.

Edelweiss Balanced Advantage Fund

The Edelweiss Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund offered by Edelweiss Mutual Fund. It has been operational since January 1, 2013, marking over 11 years and three months in existence.

The Edelweiss Balanced Advantage Fund, which is categorized as a Dynamic Asset Allocation Fund, manages an Asset Under Management (AUM) of 10,622.55. It has seen a Compound Annual Growth Rate (CAGR) of 27.85% over the past five years. The fund has an exit load of 27.85% and an expense ratio of 0.49. It falls under the Very High-risk category according to SEBI. The asset allocation is as follows: Equity represents 69.34% of the total, Debt accounts for 24.17%, and other types of assets make up 6.49%.

Mirae Asset Aggressive Hybrid Fund

The Mirae Asset Aggressive Hybrid Fund Direct-Growth is an aggressive hybrid mutual fund offered by Mirae Asset Mutual Fund. Launched on July 8, 2015, this fund has been operational for nearly 9 years.

The Mirae Asset Aggressive Hybrid Fund, classified under the Aggressive Hybrid Fund category, has an Assets Under Management (AUM) of 8,400.93. It has achieved a five-year Compound Annual Growth Rate (CAGR) of 27.35%. The fund’s exit load is also 27.35% and it features an expense ratio of 0.42. According to SEBI, it is rated as Very High risk. The asset allocation is distributed as follows: Equity assets account for 74.07% of the total, debt instruments make up 22.41%, real estate investments constitute 0.77%, and cash and cash equivalents represent 2.75%.

Nippon India Balanced Advantage Fund

The Nippon India Balanced Advantage Fund Direct-Growth is a Dynamic Asset Allocation mutual fund offered by Nippon India Mutual Fund. Launched on January 1, 2013, this fund has been operational for over 11 years and three months.

The Nippon India Balanced Advantage Fund, which is a Balanced Advantage Fund, manages an Asset Under Management (AUM) of 7,719.3. It has a five-year Compound Annual Growth Rate (CAGR) of 26.1%. The fund has an exit load of 26.1% and an expense ratio of 0.61. It is categorized as Very High risk by SEBI. The asset allocation is distributed as follows: 67.13% is invested in equity, 25.78% is allocated to debt, and the remaining 7.09% is invested in other asset types.

SBI Multi Asset Allocation Fund

The SBI Multi Asset Allocation Fund Direct-Growth is a Multi Asset Allocation mutual fund scheme offered by SBI Mutual Fund. Launched on January 1, 2013, the fund has been operational for over 11 years and three months.

The SBI Multi Asset Allocation Fund, listed under the Multi Asset Allocation Fund category, has Assets Under Management (AUM) totaling 4,229.79. It has registered a Compound Annual Growth Rate (CAGR) of 30.29% over the last five years. The fund carries an exit load of 30.29% and an expense ratio of 0.58. It is rated as Very High risk according to SEBI standards. The asset allocation is distributed as follows: Equity makes up 36.65% of the total, debt accounts for 38.97%, and other types of assets constitute 24.38%.

ICICI Pru Regular Savings Fund

The ICICI Prudential Regular Savings Fund Direct-Growth is a Conservative Hybrid mutual fund offering from ICICI Prudential Mutual Fund. Launched on January 1, 2013, this fund has been operational for 11 years and three months.

The ICICI Pru Regular Savings Fund is categorized as a Conservative Hybrid Fund and has an Asset Under Management (AUM) of 3,396.68. It boasts a five-year Compound Annual Growth Rate (CAGR) of 15.72%. The fund has an exit load of 15.72% and an expense ratio of 0.91. It is classified under the SEBI risk category as Moderately High. The asset allocation is structured as follows: 23.43% is allocated to equity, 68.01% to debt, and the remaining 8.56% to other asset types. This distribution reflects a diverse investment strategy.

DSP Dynamic Asset Allocation Fund

The DSP Dynamic Asset Allocation Fund Direct-Growth is a dynamic asset allocation mutual fund offered by DSP Mutual Fund. Launched on January 17, 2014, this fund has been operational for over 10 years and three months.

The DSP Dynamic Asset Allocation Fund, which falls under the Dynamic Asset Allocation Fund category, oversees an Asset Under Management (AUM) of 3,124.7. It has achieved a Compound Annual Growth Rate (CAGR) of 21.87% over the past five years. The fund has an exit load of 21.87% and an expense ratio of 0.84. It is rated as Moderate risk by SEBI. The asset allocation is structured as follows: Equity constitutes 30.33% of the total, debt represents 32.44%, and cash and cash equivalents make up 37.23%.

Kotak Debt Hybrid Fund

The Kotak Debt Hybrid Fund Direct-Growth is categorized as a Conservative Hybrid mutual fund offered by Kotak Mahindra Mutual Fund. Launched on January 1, 2013, this fund has been operational for over 11 years and three months.

The Kotak Debt Hybrid Fund, classified as a Conservative Hybrid Fund, manages an Asset Under Management (AUM) of 2,301.97. It has recorded a Compound Annual Growth Rate (CAGR) of 17.59% over five years. The fund has an exit load of 17.59% and an expense ratio of 0.5. It is categorized under the SEBI risk category as Moderately High. The asset allocation consists of 23.84% in equity, 72.97% in debt, and 3.19% in other asset types. This distribution reflects a strategic allocation where the majority is held in debt instruments, with a smaller proportion in equities and other assets.

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Low Risk Mutual Funds For Long Term – FAQs

Which Are The Best Low Risk Mutual Funds For Long Term In India?

Best Low Risk Mutual Fund for Long Term #1: ICICI Pru Balanced Advantage Fund

Best Low Risk Mutual Fund for Long Term #2: ICICI Pru Multi-Asset Fund

Best Low Risk Mutual Fund for Long Term #3: ICICI Pru Equity & Debt Fund

Best Low Risk Mutual Fund for Long Term #4: Edelweiss Balanced Advantage Fund

Best Low Risk Mutual Fund for Long Term #5: Mirae Asset Aggressive Hybrid Fund

These funds are listed based on the Highest AUM.

What Are The Top Low Risk Mutual Funds For Long Term?

The top low-risk mutual funds for long-term investment in India include the ICICI Pru Balanced Advantage Fund, ICICI Pru Multi-Asset Fund, ICICI Pru Equity & Debt Fund, Edelweiss Balanced Advantage Fund, and Mirae Asset Aggressive Hybrid Fund. These funds are known for their conservative investment strategies and diversified portfolios, making them suitable for investors seeking stability over a longer investment horizon.

Can I Invest In Low Risk Mutual Funds For the Long Term?

Yes, you can invest in low-risk mutual funds for the long term. These funds are ideal for investors looking to preserve capital and achieve stable returns. They invest in secure assets such as high-quality bonds and balanced funds, providing a safer option for those with a conservative investment approach.

Is It Good To Invest In Low Risk Mutual Funds For the Long Term?

Yes, investing in low-risk mutual funds for the long term is a good strategy for those who prioritize capital preservation and steady income over high returns. These funds typically offer more stability and less volatility, making them suitable for conservative investors or those nearing retirement.

How To Invest in Low Risk Mutual Funds For the Long Term?

To invest in low-risk mutual funds for the long term, start by researching and selecting funds that focus on stable, high-quality assets. Consider mutual funds with a history of steady returns and low volatility. You can invest directly through mutual fund companies or financial platforms, using either a lump sum or a systematic investment plan (SIP) to spread out your investment over time.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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