Best Low Risk-High Return Mutual Funds as per ValueResearch to Invest- Finding mutual funds that give good returns without too much risk is like finding a hidden treasure. Most funds either give high returns with lots of ups and downs, or they stay safe but grow slowly. ValueResearch, India’s most trusted website for checking mutual funds, has a special way to find funds that give you both safety and good growth.
They rate funds on two things: how risky they are and how much money they make for you. We found 7 special mutual funds that scored “Low Risk” and “High Return” in ValueResearch’s ratings. These funds are perfect if you want your money to grow safely in 2025.
What Does Low Risk and High Return Mean?
Low Risk means the fund doesn’t go up and down wildly. When the stock market falls, these funds fall less. When everyone is panicking, these funds stay relatively calm. ValueResearch checks how often a fund loses money compared to safe bank deposits. Funds that lose money less usually get a “Low Risk” grade.
High Return means the fund has made more money than most other similar funds over many years. ValueResearch compares each fund with others in the same group and gives grades based on performance. When a fund gets “High Return,” it means it beat most of its competitors.
When a fund has both low risk and high return, it’s very special. It’s like a student who studies smart (not just hard) and gets top marks without much stress.
7 Best Low Risk-High Return Mutual Funds as per ValueResearch
Based on ValueResearch ratings and analysis, here are 7 funds that combine safety with excellent returns:
| Fund Name | 3-Year Return (%) | 5-Year Return (%) | Risk Level | Return Grade | Overall Rating |
|---|---|---|---|---|---|
| HDFC Flexi Cap Fund | 25.0 | 30.3 | Low | High | ★★★★★ |
| HDFC Focused 30 Fund | 25.1 | 30.9 | Low | High | ★★★★★ |
| ICICI Prudential Infrastructure Fund | 30.1 | 38.8 | Low | High | ★★★★★ |
| ICICI Prudential Bluechip Fund | 20.2 | 22.6 | Low | High | ★★★★★ |
| ICICI Prudential Large & Mid Cap Fund | 23.9 | 29.1 | Low | High | ★★★★★ |
| Nippon India Large Cap Fund | 21.7 | 26.2 | Low | High | ★★★★★ |
| SBI Contra Fund | 21.8 | 30.6 | Low | High | ★★★★★ |
Note: Returns are annualised as of October 2025. All funds have 5-star ratings from ValueResearch.
7 Best Low Risk-High Return Mutual Funds as per ValueResearch to Invest in 2025
1. HDFC Flexi Cap Fund
This fund can invest in any size company – small shops to big factories. The manager picks the best companies without any limits. In the last 5 years, it has grown money by 30.3% every year. That means ₹10,000 becomes about ₹40,000 in 5 years! The fund falls less than the market when times are bad, making it safer than most funds.
Best for: People who want one fund that can do everything
2. HDFC Focused 30 Fund
Most funds buy 50-80 different company shares. This fund only buys 25-30 best companies. It’s like having a cricket team with only star players. The manager watches these companies very carefully. This careful selection has given 30.9% growth per year for 5 years – one of the best performances.
Best for: People who trust focused, quality investing
3. ICICI Prudential Infrastructure Fund
India is building new roads, airports, metro trains, and smart cities everywhere. This fund invests in companies that build these things or supply materials like cement and steel. It has given the highest returns – 38.8% per year for 5 years! Despite this high return, ValueResearch says it has low risk.
Best for: People who believe India’s growth story will continue
4. ICICI Prudential Bluechip Fund
“Bluechip” means the biggest, most famous companies – like Reliance, TCS, HDFC Bank, Infosys. These companies have been successful for 20-30 years. This fund only buys such safe companies. Returns are steady at 22.6% per year for 5 years. You won’t get super-high returns, but you’ll sleep peacefully knowing your money is with India’s best companies.
Best for: Conservative investors who want maximum safety
5. ICICI Prudential Large & Mid Cap Fund
This fund is smart – it puts 65% money in big safe companies and 35% in medium-sized growing companies. Big companies give safety, medium companies give faster growth. This balance has delivered 29.1% returns per year for 5 years while keeping risk low.
Best for: People who want both safety and growth
6. Nippon India Large Cap Fund
Run by Nippon India Mutual Fund (earlier called Reliance Mutual Fund), this fund has been around for more than 10 years. It buys only large, trusted companies. The fund manager is very experienced and has beaten the market consistently. It gave 26.2% returns per year for 5 years and 15.7% per year for 10 years.
Best for: Long-term investors who value experience and track record
7. SBI Contra Fund
This fund follows a unique “contrarian” approach. When everyone is selling a good company because it’s unpopular, this fund buys it cheap. When everyone realizes the company is actually good, the price goes up. This smart strategy has given 30.6% returns per year for 5 years. However, this needs patience – sometimes you wait 1-2 years before seeing results.
Best for: Patient investors who understand value investing
Why These 7 Funds Stand Out
All these funds share special qualities:
- Proven Track Record: They’ve performed well for at least 5 years, through good and bad markets
- Low Risk Grade: ValueResearch confirmed they fall less than other funds when markets drop
- High Return Grade: They’ve beaten most competitors in their category
- 5-Star Rating: All have the highest rating from ValueResearch
- Experienced Management: Run by India’s top fund houses (HDFC, ICICI, Nippon, SBI)
- Good Fund Size: Large enough to be stable but not too big to be slow
How to Choose Among These 7 Funds
- If you’re a beginner: Start with ICICI Bluechip Fund or Nippon India Large Cap Fund. They’re the safest.
- If you want high growth: Choose ICICI Infrastructure Fund or HDFC Focused Fund. They give better returns.
- If you want one balanced fund: Go with HDFC Flexi Cap or ICICI Large & Mid Cap Fund. They adjust to market conditions.
- If you’re patient and smart: Try SBI Contra Fund. It rewards patience with excellent returns.
- Best approach: Instead of picking just one, invest in 2-3 different funds from this list. This spreads your risk even more.
How Much Should You Invest?
Start small and increase gradually:
- Beginners: ₹500-1,000 per month in one fund
- Regular investors: ₹2,000-5,000 per month split across 2 funds
- Serious investors: ₹10,000+ per month across 3-4 funds
Use SIP (Systematic Investment Plan) to invest the same amount every month. This is better than investing a big amount at once.
Important Things to Remember
- Give it time: These funds need at least 5 years to show their true power. Don’t expect magic in 6 months.
- Don’t panic in bad times: If the market falls and your fund value drops, don’t sell. These funds have “low risk” but they’re not “no risk.”
- Review once a year: Check your funds once every year, not every day. Too much checking creates unnecessary worry.
- Keep investing in SIP: Continue your SIP even when markets fall. This is when you buy cheap and make better profits later.
- Diversify properly: Don’t put all money in one fund. Spread across 2-3 funds from this list.
Conclusion
These 7 mutual funds – HDFC Flexi Cap Fund, HDFC Focused 30 Fund, ICICI Prudential Infrastructure Fund, ICICI Prudential Bluechip Fund, ICICI Prudential Large & Mid Cap Fund, Nippon India Large Cap Fund, and SBI Contra Fund – represent the best combination of safety and returns according to ValueResearch’s trusted rating system.
Each fund has earned both a “Low Risk” grade and a “High Return” grade, which is rare and valuable. They’ve proven themselves over 5-10 years by growing investors’ money while protecting them during market crashes. These funds are managed by India’s most respected fund houses and experienced fund managers who have seen many market cycles.
The beauty of these funds is that they suit different types of investors. Whether you’re a nervous beginner who wants maximum safety or an experienced investor looking for balanced growth, there’s a fund here for you. The key is to pick 2-3 funds that match your comfort level and goals, then stick with them for many years.
Remember, successful investing is not about finding the “perfect” fund or timing the market perfectly. It’s about choosing good funds (like these 7), investing regularly through SIP, and having patience to let your money grow over 5-10 years. These funds have already proven they can deliver – now it’s your turn to start investing and stay the course.
ValueResearch has done the hard work of analysing hundreds of funds and finding these gems. All you need to do is pick the ones that suit you, start your SIP, and let time and compounding work their magic on your wealth.
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Disclaimer: This information is for educational purposes only and not investment advice. Mutual fund investments are subject to market risks. Past performance doesn’t guarantee future results. Please read all scheme documents carefully. Consult a financial advisor before investing, especially if you’re new to mutual funds.
