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High Risk Mutual Funds
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List of High Risk Mutual Funds in 2026
Top 10 High Risk Mutual Funds to invest in 2026
Below are the high risk mutual funds in india:
1. HDFC Gold ETF Fund of Fund Direct (G)
HDFC Gold ETF Fund of Fund Direct (G) is a Precious Metals fund that has delivered a 1 Year return of 78.6%, a 3 Years return of 37.5% and a 5 Years return of 25.0%. The fund has an expense ratio of 0.2% and an AUM of ₹11458 crores as of 2026-02-11. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 01.28% to other assets.
2. Kotak Gold Fund Direct (G)
Kotak Gold Fund Direct (G) is a Precious Metals fund that has delivered a 1 Year return of 78.8%, a 3 Years return of 37.5% and a 5 Years return of 25.0%. The fund has an expense ratio of 0.2% and an AUM of ₹6556 crores as of 2026-02-11.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 01.28% to other assets.
3. SBI Credit Risk Fund Direct (G)
SBI Credit Risk Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 8.2%, a 3 Years return of 8.8% and a 5 Years return of 7.5%. The fund has an expense ratio of 0.9% and an AUM of ₹2164 crores as of 2026-02-11.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 092.03% to debt and 4.93% to other assets.
4. Quant Multi Asset Allocation Fund Direct (G)
Quant Multi Asset Allocation Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 27.3%, a 3 Years return of 25.8% and a 5 Years return of 28.4%. The fund has an expense ratio of 0.6% and an AUM of ₹4763 crores as of 2026-02-11.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 53.22% to equities, 10.35% to debt and 13.63% to other assets.
5. HDFC Credit Risk Debt Fund Direct (G)
HDFC Credit Risk Debt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 8.1%, a 3 Years return of 8.2% and a 5 Years return of 7.4%. The fund has an expense ratio of 1.0% and an AUM of ₹6876 crores as of 2026-02-11. It was Launched on 2014-03-25. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 090.96% to debt and 5.09% to other assets.
6. ICICI Prudential Credit Risk Fund Direct (G)
ICICI Prudential Credit Risk Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 10.0%, a 3 Years return of 9.2% and a 5 Years return of 8.1%. The fund has an expense ratio of 0.8% and an AUM of ₹5940 crores as of 2026-02-11.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 083.04% to debt and 7.41% to other assets.
7. Nippon India Credit Risk Fund Direct (G)
Nippon India Credit Risk Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.3%, a 3 Years return of 9.1% and a 5 Years return of 9.2%. The fund has an expense ratio of 0.7% and an AUM of ₹1031 crores as of 2026-02-11.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 094.98% to debt and 5.02% to other assets.
8. Nippon India Gold Savings Fund Direct (G)
Nippon India Gold Savings Fund Direct (G) is a Precious Metals fund that has delivered a 1 Year return of 78.0%, a 3 Years return of 37.4% and a 5 Years return of 24.9%. The fund has an expense ratio of 0.1% and an AUM of ₹7160 crores as of 2026-02-11.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 00.00% to debt and 1.23% to other assets.
9. Nippon India Conservative Hybrid Fund Direct (G)
Nippon India Conservative Hybrid Fund Direct (G) is a Hybrid fund that has delivered a 1 Year return of 10.3%, a 3 Years return of 10.1% and a 5 Years return of 9.1%. The fund has an expense ratio of 1.1% and an AUM of ₹936 crores as of 2026-02-11.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 12.44% to equities, 75.20% to debt and 7.80% to other assets.
10. Axis Credit Risk Fund Direct (G)
Axis Credit Risk Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.2%, a 3 Years return of 8.7% and a 5 Years return of 7.7%. The fund has an expense ratio of 0.8% and an AUM of ₹363 crores as of 2026-02-11. It was Launched on 2014-07-15. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 095.91% to debt and 1.61% to other assets.
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.
What are High-Risk Mutual Funds?
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.
High-risk funds do not necessarily mean equity mutual funds. Debt schemes that invest in securities with low ratings are also risky. 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.
Top 5 Popular High Risk Funds with Highest Returns 2026
Direct Plan
| Fund Name | 3 Year Returns | 5 Year Returns |
| Kotak Gold Fund Direct Plan Growth | 14% | 13.7% |
| HDFC Gold ETF Fund of Fund Direct Plan Growth | 13.9% | 13.5% |
| Nippon India Gold Savings Fund Direct Plan Growth | 13.1% | 12.7% |
| SBI Credit Risk Fund Direct Plan Growth | 7.3% | 7.6% |
| Nippon India Hybrid Bond Fund Direct Plan Growth | 8.2% | 5.2% |
Regular Plan
| Fund Name | 3 Year Returns | 5 Year Returns |
| HDFC Balanced Advantage Fund Regular Plan Growth | 20.8% | 20.1% |
| Union Balanced Advantage Fund Regular Plan Growth | 8.8% | 11.8% |
| Tata Balanced Advantage Fund Regular Plan Growth | 11% | 13.3% |
| Quant Multi Asset Fund Regular Plan Growth | 21.4% | 27.7% |
| HDFC Multi Asset Fund Regular Plan Growth | 12.8% | 15.5% |
Features of High-Risk Funds
Following are the features of High-Risk Mutual Funds:
- Risk-Reward Ratio: Higher the risk, higher the reward. Investing in high-risk mutual funds has a good potential to earn significant returns. Investing in high volatile securities individually can be costly and also risky. On the other hand, investing in high-risk mutual funds can be rewarding in the long term. The scheme’s volatility is likely to average out in the long term and help in generating significant returns.
- Asset Allocation: High-risk schemes invest across high volatile securities – emerging companies or low rated schemes. The asset allocation strategy plays a major role while choosing a mutual fund. For example, a hybrid mutual fund invests across equity and debt securities. Asset allocation plays a significant role in the performance of the scheme. High-risk funds have different schemes with diverse asset allocation strategies.
- Types of Funds: There are multiple schemes for investors to choose from under the high-risk category. Some of which are hybrid equity funds, hybrid debt funds, funds of funds, balanced funds, etc.
- Investment Duration: High-risk funds are a long-term investment option. The volatile nature of the scheme requires a long-term investment duration to average out the volatility and generate significant returns.
- Investment Objective: High-risk funds focus on capital appreciation. Therefore, they are suitable for long term goals such as buying a house or saving for retirement.
Who Should Invest in High-Risk Funds?
- High-risk mutual funds are highly volatile investment options. Therefore, they are suitable for investors who have high-risk tolerance levels.
- Investors who have a long-term investment horizon (5 years or more) and who understand the risk associated can invest in high-risk schemes.
- High-risk funds are suitable for investors who wish to invest towards long term goals like retirement, a child’s education, buying a house, etc.
- Furthermore, investors who understand the market dynamics and the functioning of the stock markets can invest in high-risk funds.
- Therefore, it is important to align the fund’s investment objective with your investment goals before investing in high-risk funds. Choosing the right scheme for your goal will greatly impact the corpus you wish to build.