High Risk Mutual Funds

High-risk mutual funds are investment vehicles designed for investors who are willing to accept a higher level of risk in exchange for the potential for substantial returns. These funds typically invest in assets that exhibit significant price volatility, such as equities in emerging markets, small-cap stocks, sector-specific funds, and high-yield bonds. The primary objective of high-risk mutual funds is to achieve capital appreciation rather than preserving capital or generating steady income.

Read more

Best High Risk Mutual Funds to Invest in India 2024

Fund Categories
Collections
AMC/Fund Houses
ICICI Prudential Asset Management Company LimitedHDFC Asset Management Co LtdSBI Funds Management LtdKotak Mahindra Asset Management Co LtdNippon Life India Asset Management LtdAditya Birla Sun Life AMC LtdAxis Asset Management Company LimitedUTI Asset Management Co LtdMirae Asset Investment Managers (India) Private LimitedDSP Asset Managers Private LimitedTata Asset Management LimitedBandhan Asset Management Company LimitedDSP Investment Managers Private LimitedHSBC Asset Management(India)Private LtdIDFC Asset Management Company LimitedCanara Robeco Asset Management Co. Ltd.Franklin Templeton Asst Mgmt(IND)Pvt LtdEdelweiss Asset Management LimitedQuant Money Managers LimitedInvesco Asset Management (India) Private LtdPPFAS Asset Management Pvt. LtdMirae Asset Mutual FundSundaram Asset Management Company LtdMotilal Oswal Asset Management Co. LtdMirae Asset Global Inv (India) Pvt. LtdBaroda BNP Paribas Asset Management India Pvt. Ltd.LIC Mutual Fund Asset Management LimitedPGIM India Asset Management Private LimitedDaiwa Asset Mgmt. (India) Pvt. Ltd.Mahindra Manulife Investment Management Pvt. Ltd.Fund PineBridge Mutual FundJM Financial Asset Management LimitedUnion Asset Management Co. Pvt. Ltd.Baroda Asset Management India LimitedPrincipal Asset Management Private LimitedWhiteOak Capital Asset Management LimitedBajaj Finserv Asset Management LimitedJPMorgan Asset Management India Pvt. Ltd360 ONE Asset Management LimitedEdelweiss Mutual FundBank of India Investment Managers Private LimitedITI Asset Management LimitedNavi AMC LimitedNJ Asset Management Private LimitedICICI Prudential Asset Mgmt.Company LimitedFranklin Templeton Asset ManagementIDBI Asset Management LimitedQuantum Asset Management Co Pvt. Ltd.Samco Asset Management Pvt LtdHelios Capital Asset Management (India) Private LimitedGroww Asset Management Ltd.Trust Asset Management Private LimitedTaurus Asset Management Company LimitedShriram Asset Management Co LtdZerodha Asset Management Private LimitedOld Bridge Asset Management Private LimitedING Investment Mgnt (India) Private Ltd.Baroda BNP Paribas Mutual Fund
Risk
High Risk Mutual Funds SIP Calculator
Calculate SIP returns based on past data
  • SIP

  • One-Time

Select Frequency

Investment Amount

Disclaimer : Projections/estimations is backtested using historical data

Start SIP in High Risk Mutual Funds as low as Rs. 50

Daily SIP | Weekly SIP | Monthly SIP

Read more

Advantages of Investing in High Risk Mutual Funds

  • Potential for High Returns

    One of the primary advantages of investing in high-risk mutual funds is the potential for high returns. These funds invest in volatile but high-growth assets such as small-cap stocks, emerging markets, and technology sectors, which can deliver substantial capital appreciation. For investors with a long-term horizon, the possibility of significantly outperforming the market makes these funds an attractive option.

  • Diversification Opportunities

    High-risk mutual funds provide diversification opportunities by investing across various high-growth sectors and geographies. This diversified approach spreads the risk across multiple investments, reducing the impact of poor performance in any single asset. Diversification within high-risk assets can enhance overall portfolio stability and potentially improve returns by capturing growth from different market segments.

  • Consistent Returns

    Investing in FMCG mutual funds can yield consistent returns over time. The companies in this sector often have strong brand recognition, loyal customer bases, and efficient distribution networks. These factors contribute to regular income through dividends and the potential for long-term capital appreciation.

  • Active Management

    High-risk mutual funds are often actively managed by experienced fund managers who continuously monitor the market and make strategic investment decisions. This active management can capitalize on market opportunities and mitigate risks through timely buying and selling of assets. Investors benefit from the expertise of professional managers who aim to maximize returns while navigating the complexities of volatile markets.

  • Access to Emerging Markets

    High-risk mutual funds often invest in emerging markets, offering investors access to economies with high growth potential. Emerging markets can deliver exceptional returns due to their expanding economies, increasing consumer bases, and improving infrastructure. By including emerging market equities in their portfolios, high-risk mutual funds provide exposure to opportunities that might be difficult to access individually, enhancing potential returns for investors.

  • Capital Appreciation

    High-risk mutual funds focus on capital appreciation, aiming to grow the principal investment significantly. Unlike low-risk funds that prioritize income and capital preservation, high-risk funds seek substantial growth in value. This emphasis on capital appreciation aligns with the goals of aggressive investors looking to build wealth rapidly and achieve long-term financial objectives.

Limitations of Investing in High Risk mutual funds

  • High Volatility

    One of the primary limitations of investing in high-risk mutual funds is their high volatility. These funds invest in assets that can experience significant price swings due to market fluctuations, economic changes, and geopolitical events. This volatility can lead to substantial short-term losses, making these investments unsuitable for those who cannot tolerate sharp declines in their portfolio value.

  • Potential for Significant Losses

    While high-risk mutual funds offer the potential for high returns, they also carry the potential for significant losses. The high-growth assets they invest in, such as small-cap stocks and emerging market equities, are more susceptible to market downturns and company-specific risks. Investors must be prepared for the possibility of losing a considerable portion of their investment, particularly during market corrections or economic downturns.

  • Unpredictable Income

    High-risk mutual funds generally do not provide predictable income streams. Unlike bond funds or dividend-focused funds, the primary goal of high-risk mutual funds is capital appreciation rather than income generation. This can be a disadvantage for investors who rely on their investments for regular income, as the returns from high-risk funds can be inconsistent and highly variable.

  • Higher Fees and Expenses

    These funds often come with higher management fees and expenses compared to lower-risk mutual funds. The active management required to navigate the complexities of volatile markets and the frequent trading of assets can result in higher costs. These fees can eat into the overall returns, reducing the net gains for investors, especially in periods of underperformance.

  • Market Timing Risk

    High-risk mutual funds require effective market timing to maximize returns, which can be challenging for both fund managers and investors. Poor timing in buying or selling high-risk assets can lead to suboptimal returns or even losses. This market timing risk adds an additional layer of complexity and uncertainty, making it difficult for investors to consistently achieve favorable outcomes.

  • Emotional Stress

    Investing in high-risk mutual funds can lead to emotional stress due to their inherent volatility and the potential for significant losses. The frequent price fluctuations and uncertainty can cause anxiety and lead to impulsive decision-making. Investors may find it challenging to stay committed to their investment strategy during periods of extreme market volatility, potentially resulting in poorly timed exits and realized losses.

Points to consider before investing in high risk mutual funds

  • High Volatility

    One of the primary limitations of investing in high-risk mutual funds is their high volatility. These funds invest in assets that can experience significant price swings due to market fluctuations, economic changes, and geopolitical events. This volatility can lead to substantial short-term losses, making these investments unsuitable for those who cannot tolerate sharp declines in their portfolio value.

  • Potential for Significant Losses

    While high-risk mutual funds offer the potential for high returns, they also carry the potential for significant losses. The high-growth assets they invest in, such as small-cap stocks and emerging market equities, are more susceptible to market downturns and company-specific risks. Investors must be prepared for the possibility of losing a considerable portion of their investment, particularly during market corrections or economic downturns.

  • Unpredictable Income

    High-risk mutual funds generally do not provide predictable income streams. Unlike bond funds or dividend-focused funds, the primary goal of high-risk mutual funds is capital appreciation rather than income generation. This can be a disadvantage for investors who rely on their investments for regular income, as the returns from high-risk funds can be inconsistent and highly variable.

  • Higher Fees and Expenses

    These funds often come with higher management fees and expenses compared to lower-risk mutual funds. The active management required to navigate the complexities of volatile markets and the frequent trading of assets can result in higher costs. These fees can eat into the overall returns, reducing the net gains for investors, especially in periods of underperformance.

  • Market Timing Risk

    High-risk mutual funds require effective market timing to maximize returns, which can be challenging for both fund managers and investors. Poor timing in buying or selling high-risk assets can lead to suboptimal returns or even losses. This market timing risk adds an additional layer of complexity and uncertainty, making it difficult for investors to consistently achieve favorable outcomes.

  • Professional Advice

    Consulting with a financial advisor can provide valuable insights and help you make informed decisions about investing in high-risk mutual funds. A professional can assess your individual situation, recommend appropriate funds, and assist in developing a diversified investment strategy that aligns with your risk tolerance and financial goals.

How to Start Investing in High Risk Mutual Funds with INDmoney

Now that you have understood what High Risk Mutual Funds are, you need to know how easily you can start your investment with INDmoney. Just follow these simple steps given below, to start your mutual fund investment journey with us.

  • Step 1

    Download the INDmoney app and create your free investment account by completing your KYC (Know Your Customer).

  • Step 2

    Once your free investment account is ready, you can either search for an High Risk Mutual Fund or go to the mutual fund section and tap on High Risk Mutual Fund from Discover All Categories.

  • Step 3

    Choose an High Risk Mutual Fund by looking at aspects like past returns, volatility, downside capture ratio, AUM, expense ratios, and underlying stocks and sectors.

  • Step 4

    You can choose to set up a SIP in an High Risk Mutual Fund or even invest as a lump sum. Once you are on the individual High Risk Mutual Fund page, click from the bottom “One-time” for lump sum investment or “SIP” for a systematic investment plan.

  • Step 5

    Choose the amount that you want to invest as SIP or Lump Sum.

  • Step 6

    Set up payments. If you choose to set up SIP in an High Risk Mutual Fund, you can do a free automatic pay set up via bank mandate or UPI. If you choose to invest in lump sum (one-time) then you can pay via UPI, net banking, NEFT, or RTGS.

INDmoney is 100% Safe and Secure!

Your security and privacy are our top priority!

  • ISO Certification Icon

    27001:2013

    ISO Certified

  • Audited By Icon

    Audited by

    cert-in empanelled auditors

  • Secured Icon

    AES 256-BIT

    SSL Secured

img

Your personal information is protected.

With AES 256-bit encryption and TLS 1.3 secure data in transit.

img

Trusted by 10 million+ happy investors

Open your account in a minute. Invest in Indian Stocks, US Stocks, Mutual Funds, ETFs, Fixed Deposit and NPS.