Looking for safe mutual funds with higher return potential? Here is our list

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Looking for safe mutual funds with higher return potential? Here is our list

Many mutual fund investors are increasingly becoming mindful of the risk associated with their schemes given the current market volatility.

Many mutual fund investors are increasingly becoming mindful of the risk associated with their schemes thanks to the current volatility in the stock market. Suddenly, everyone is looking for a `safe or `consistent performing mutual fund scheme. Asked to define thesafeschemes, the investors would say they want a scheme that wouldnt suffer much in a falling market and offers good returns in a bull market. Is it possible?

We looked at Up capture ratio and Down capture ratio of equity mutual fund schemes, including largecap, midcap, smallcap, large and midcap, multicap, focused and value funds. We looked at the data category wise. Next, we took out all those schemes which had an up-capture ratio of more than 100 and down-capture ratio of less than 100.

What do these ratios capture?An up-capture ratio shows how a scheme has performed vs its benchmark when the benchmark had a positive return. And, a down-capture ratio shows the performance of a scheme vs its benchmark when the benchmark had a negative return.

A ratio of 100 for a scheme means, the schemes performance was in line with its benchmark. Moving back to our selection of schemes, we have taken out those schemes which have outperformed their respective benchmarks in both the bull and the bear phases of a market.

In a bearish market, if a scheme falls less than its benchmark, it is considered an outperformance. In other words, we can say that these schemes have given higher returns than their benchmark in all the bull runs and have fallen less than their benchmark in bear markets during a certain period. For our study, we have taken a period of five years.

Out of a total universe of 157 schemes, we found six mutual fund schemes which fulfilled our selection criteria. Among them, two were large and midcap schemes, three were multicap schemes and one is a focused scheme.

We do not advise investors to outrightly invest in these schemes. While it is important to look for schemes which gives you a downside protection, there are several other factors to consider while choosing mutual fund schemes. For example, your goals, time in your hand and your risk appetite, among others.

Planning to invest in mutual funds to build a retirement corpus? Here is what you should know.

Canara Robeco Emerging Equities Fund Regular Plan

Mirae Asset Emerging Bluechip Fund Regular Plan

(%)Mirae Asset Tax Saver Direct-G3.026.8212.2012.8021.06Invest NowMirae Asset Tax Saver Reg-G2.846.3011.1811.1019.41Invest NowMotilal Oswal Long Term Equity Fund Direct-Growth

ELSS3.664.937.27-1.9916.30Invest NowFeatured

ELSS2.276.8912.599.4414.74Start SIPMotilal Oswal Focused 25 Fund Direct-Growth

Large Cap3.909.0710.195.6214.21Invest NowDHFL Pramerica Gilt Direct Plan – Growth

Gilt3.925.676.9612.628.53Invest NowDSP Midcap Direct Plan-Growth

Mid Cap2.183.068.450.8813.60Start SIPDHFL Pramerica Hybrid Debt Fund Direct Plan-Growth

Conservative Hybrid1.113.736.119.959.06Invest NowDSP Focus Direct Plan-Growth

Multi Cap3.007.9111.476.2811.64Start SIPMotilal Oswal Multicap 35 Fund Direct-Growth

Multi Cap4.316.938.542.1315.13Invest NowMotilal Oswal Midcap 30 Fund Direct-Growth

Mid Cap1.813.448.520.388.50Invest NowDHFL Pramerica Large Cap Fund Direct Plan-Growth

Large Cap2.998.4512.939.6412.24Invest NowDSP Small Cap Direct Plan-Growth

Small Cap3.734.118.61-5.858.06Start SIPDSP Equity Opportunities Direct Plan-Growth

Large & MidCap1.935.119.794.9514.35Start SIPDSP Credit Risk Direct Plan-Growth

Credit Risk-0.321.18-1.21-1.034.75Start SIPMotilal Oswal Long Term Equity Fund Direct-Growth

ELSS3.664.937.27-1.9916.30Invest NowDSP Tax Saver Direct Plan-Growth

ELSS2.276.8912.599.4414.74Start SIPDSP Liquidity Direct-Growth

Liquid0.611.853.677.607.20Start SIPICICI Prudential Savings Fund Direct Plan -Growth

Low Duration1.092.524.538.807.99Invest NowDSP Savings Direct Plan-Growth

Money Market1.122.414.338.627.09Start SIPDSP Strategic Bond Direct Plan-Growth

Dynamic Bond-2.31-0.770.806.625.99Start SIPDSP 10Y G-Sec Fund Direct-Growth

Gilt with 10 year Constant Duration3.625.005.9313.378.13Start SIPDSP Bond Direct-Growth

Medium Duration-3.36-1.82-1.281.905.99Start SIPDSP Short Term Direct Plan-Growth

Short Duration1.702.915.019.737.83Start SIPDSP Ultra Short Fund Direct Plan-Growth

Ultra Short Duration0.892.193.146.467.02Start SIPDSP Equity Savings Fund Direct-Growth

Equity Savings1.533.926.575.559.14Start SIPDSP Dynamic Asset Allocation Fund Direct-Growth

Dynamic Asset Allocation1.032.735.048.479.12Start SIPDSP Regular Savings Direct Plan-Growth

Conservative Hybrid1.723.773.591.667.01Start SIPDSP Equity & Bond Direct-Growth

Aggressive Hybrid2.956.2210.537.8912.44Start SIP

– Returns less then 1 year are absolute and above 1 year are annualised.

– Returns of 1 year are absolute and above 1 year are annualised..

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