Moderate risk mutual funds are investment vehicles designed to offer a balance between risk and return, catering to investors who seek a middle ground between aggressive growth and capital preservation. These funds typically invest in a mix of equities (stocks) and fixed-income securities (bonds), striving to achieve a diversified portfolio that can provide both capital appreciation and income. The allocation between stocks and bonds in these funds can vary, but it usually aims to maintain a moderate level of risk and volatility.
Sort by
AUM ₹77 Cr •
Expense 0.45%
AUM ₹7804 Cr •
Expense 0.66%
AUM ₹990 Cr •
Expense 0.61%
AUM ₹271 Cr •
Expense 1.09%
AUM ₹642 Cr •
Expense 0.8%
AUM ₹2162 Cr •
Expense 0.43%
AUM ₹539 Cr •
Expense 0.59%
AUM ₹580 Cr •
Expense 0.69%
AUM ₹216 Cr •
Expense 0.49%
Daily SIP | Weekly SIP | Monthly SIP
Calculate your Mutual Funds Lumpsum & SIP Returns for free with INDmoney Calculators
SIP Calculator
Estimates the final amount you could get from making regular SIP investments
Regular vs. Direct Plan Calculator
Shows you how much you can save on fees by choosing a direct plan over a regular one
Mutual Fund Returns Calculator
Calculates how much your investment could grow over a specified period
Balanced Growth and Income
Investing in moderate risk mutual funds offers a balanced approach to achieving both growth and income. These funds typically combine equities, which provide capital appreciation, and fixed-income securities, which offer steady income. This dual focus allows investors to benefit from potential market gains while receiving regular income, making it an attractive option for those seeking a well-rounded investment strategy.
Diversification
Moderate risk mutual funds inherently provide diversification by investing across multiple asset classes, sectors, and geographies. This spread of investments helps to mitigate risk, as poor performance in one area can be offset by better performance in another. Diversification reduces the overall volatility of the portfolio and protects investors from significant losses in any single investment.
Lower Volatility Compared to Equities
While moderate risk mutual funds do invest in stocks, their inclusion of bonds and other fixed-income securities helps to dampen the volatility typically associated with pure equity investments. This results in a smoother investment experience, reducing the potential for drastic fluctuations in portfolio value. Investors who are wary of the high volatility of stock markets can find moderate risk funds to be a more stable alternative.
Potential for Higher Returns than Low-Risk Funds
Moderate risk mutual funds offer the potential for higher returns compared to low-risk funds, which primarily invest in bonds or money market instruments. By including equities in their portfolio, moderate risk funds can achieve better growth over time. This makes them suitable for investors who are willing to accept a moderate level of risk in exchange for higher long-term returns.
Professional Management
These funds are managed by professional fund managers who have the expertise to make informed investment decisions. They continuously monitor market conditions and adjust the fund's holdings to optimize performance. This professional management provides investors with the confidence that their money is being handled by experienced professionals, which can be particularly beneficial for those who lack the time or knowledge to manage their investments actively.
Flexibility
Moderate risk mutual funds offer a degree of flexibility that can be advantageous for investors. Fund managers have the ability to adjust the asset allocation in response to changing market conditions, which helps to manage risk and capitalize on opportunities. This dynamic approach allows the fund to remain aligned with its investment objectives, providing a balanced and adaptive strategy that can respond to both market upturns and downturns.
Potential for Losses
Moderate risk mutual funds, while designed to balance risk and return, still carry the potential for losses. The inclusion of equities exposes investors to market volatility, which can result in negative returns, especially during market downturns. Unlike low-risk funds, moderate risk funds are not entirely shielded from market fluctuations, which can impact the value of the investment.
Less Stable Income
Compared to low-risk funds that primarily invest in fixed-income securities, moderate risk funds may provide less stable income. The dividends from equities can be less predictable and may fluctuate based on company performance and broader economic conditions. Investors relying on a steady income stream might find the variability of returns from moderate risk funds less reliable.
Less Stable Income
Compared to low-risk funds that primarily invest in fixed-income securities, moderate risk funds may provide less stable income. The dividends from equities can be less predictable and may fluctuate based on company performance and broader economic conditions. Investors relying on a steady income stream might find the variability of returns from moderate risk funds less reliable.
Higher Fees
Moderate risk mutual funds often come with higher management fees and expenses compared to low-risk funds. This is due to the active management required to balance the portfolio between different asset classes. These higher fees can reduce overall returns, especially in periods when the fund's performance is moderate or below expectations.
Inflation Risk
While moderate risk mutual funds aim for higher returns than low-risk funds, they may still not always keep pace with inflation. If the fund's returns are lower than the inflation rate, the real value of the investment can decrease over time. This is a particular concern for investors looking to preserve or grow their purchasing power.
Interest Rate Sensitivity
The bond component of moderate risk mutual funds is sensitive to changes in interest rates. When interest rates rise, the value of existing bonds typically falls, which can negatively impact the fund's performance. This interest rate risk can offset some of the gains made from the equity portion of the portfolio, leading to lower overall returns.
Complexity
Moderate risk mutual funds can be more complex than low-risk funds due to their diversified investment strategy. Understanding the fund's asset allocation, risk profile, and performance drivers can be challenging for some investors. This complexity requires a higher level of due diligence and ongoing monitoring, which might not be suitable for all investors, particularly those with limited investment knowledge or time to manage their portfolios actively.
Investment Objectives
Before investing in moderate risk mutual funds, it's essential to clearly define your investment objectives. Consider whether your goal is to achieve a balance between capital growth and income, or if you are looking to diversify your portfolio with a moderate level of risk. Ensure that these funds align with your long-term financial goals and that you are comfortable with the potential for both gains and losses.
Risk Tolerance
Assessing your risk tolerance is crucial when considering moderate risk mutual funds. These funds involve a mix of equities and fixed-income securities, resulting in moderate volatility. Determine whether you can handle fluctuations in the value of your investment and the possibility of temporary losses. Your risk tolerance will help you decide if moderate risk funds match your comfort level and investment strategy.
Time Horizon
Consider your investment time horizon before committing to moderate risk mutual funds. These funds are generally suitable for investors with a medium to long-term perspective, typically ranging from three to ten years. A longer time horizon allows for recovery from short-term market volatility and maximizes the potential benefits of compounding returns. Ensure that your investment timeframe aligns with the fund's strategy to meet your financial goals.
Asset Allocation
Understanding the asset allocation within a moderate risk mutual fund is vital. Review the proportion of equities to fixed-income securities and ensure it aligns with your investment preferences and risk tolerance. A well-balanced allocation should provide a mix of growth potential and income stability. Evaluate whether the fund's allocation strategy meets your expectations for risk and return.
Fees and Expenses
Examine the fees and expenses associated with moderate risk mutual funds. These funds often have higher management fees due to active portfolio management. Compare the expense ratios of different funds and consider how these costs will impact your overall returns. Understanding the fee structure helps you make informed decisions and select funds that provide value for your investment.
Historical Performance
Review the historical performance of moderate risk mutual funds to gauge their track record. While past performance is not indicative of future results, it can provide insights into how the fund has managed market fluctuations and delivered returns over time. Compare the fund's performance to relevant benchmarks and peers to ensure it has consistently met its investment objectives and aligns with your expectations.
Now that you have understood what Moderate 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 a Moderate Risk Mutual Fund or go to the mutual fund section and tap on Fund of Funds from Discover All Categories.
Step 3
Choose a Moderate 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 a Moderate Risk Mutual Fund or even invest as a lump sum. Once you are on the individual Moderate 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 a Moderate 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.
Mid Cap Mutual Fund | Small Cap Mutual Funds | Flexi Cap Mutual Funds | Large and Mid Cap Funds | Multi Cap Mutual Funds | Focused Funds | Liquid Mutual Funds | Low Duration Mutual Funds | Short Duration Mutual Funds | Corporate Mutual Funds | Money Market Mutual Funds | Bank & PSU Mutual Funds | Conservative Mutual Fund | Aggressive Mutual Funds | Arbitrage Mutual Funds | Equity Savings Mutual Funds | Balanced Mutual Funds | Multi-Asset Funds | Nifty 50 Index Funds | Nifty Next 50 Index Funds | Nifty Midcap | Nifty SmallCap | Global Index Funds | Trending Funds | Index Funds | High Returns Funds | Tax Savers Mutual Funds | Gold Funds | Best Mutual Funds | Best SIP Mutual Funds | Best 5 year SIP plans
INDmoney is 100% Safe and Secure!
Your security and privacy are our top priority!
27001:2022
ISO Certified
Audited by
cert-in empanelled auditors
AES 256-BIT
SSL Secured
Your personal information is protected.
With AES 256-bit encryption and TLS 1.3 secure data in transit.
Open your account in a minute. Invest in Indian Stocks, US Stocks, Mutual Funds, ETFs, Fixed Deposit and NPS.