A high-risk mutual fund is a fund that has a good potential to generate significant returns. However, it is highly volatile, and hence the risk levels are high.
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Top High Risk Mutual Funds for long-term growth
Till Date CAGR
|Kotak Gold Fund (G)|
|HDFC Gold Fund (G)|
|Nippon India Gold Savings Fund (G)|
|ICICI Prudential Credit Risk Fund (G)|
|Axis Gold fund (G)|
|SBI Credit Risk Fund (G)|
|SBI Gold Fund (G)|
|ICICI Prudential Gold Savings Fund FOF (G)|
|Sundaram Equity Hybrid Fund (G)|
|ICICI Prudential Balanced Advantage Fund (G)|
|Aditya Birla Sun Life Gold Fund (G)|
|Quantum Gold Savings Fund (G)|
|Nippon India Balanced Advantage Fund (G)|
|Aditya Birla Sun Life Balanced Advantage Fund (G)|
|Sundaram Aggressive Hybrid Fund (G)|
|BNP Paribas Dynamic Equity Fund (G)|
|Nippon India Credit Risk Fund Institutional (G)|
|IDBI Gold Fund (G)|
|Axis Credit Risk Fund (G)|
|PGIM India Balanced Advantage Fund (G)|
Note: As per SEBI’s mandate, mutual fund houses have to provide Product Labelling for every mutual fund. The risk-o-metre depicts the risk level of a scheme. On the basis of certain characteristics, the risk level of the fund is determined.
High-risk mutual funds have a high probability of generating significant returns. At the same time, these funds are highly volatile, and returns are not guaranteed. High-risk funds invest across volatile securities, and therefore the returns can sway in any direction.
Since the funds invest across high-risk securities, it is a good practice to track your investments closely. Tracking the funds from time to time will help you minimize any potential downside risk. Also, you can analyze the performance of the fund with the changing market dynamics.
Furthermore, it is almost a prerequisite for you to have a long-term investment horizon while investing in high-risk mutual funds. With a long-term investment horizon, the volatility of the fund can be averaged out. Therefore, the potential to earn higher returns maximizes.
As the saying goes, the higher the risk, the higher will be the returns. Therefore, high-risk mutual funds have a greater potential to earn significant returns than low or moderate risk schemes. However, it is important to note that risk is a relative parameter, and one should be careful while picking funds.
Following are the features of High-Risk Mutual Funds: