Which fund has lowest risk?
Here are the best low-risk investments in March 2024:
Money market funds. Short-term certificates of deposit. Series I savings bonds. Treasury bills, notes, bonds and TIPS.
Here are the best low-risk investments in March 2024:
Money market funds. Short-term certificates of deposit. Series I savings bonds. Treasury bills, notes, bonds and TIPS.
Fund Name | Category | Risk |
---|---|---|
Invesco India Arbitrage Fund | Hybrid | Low |
Edelweiss Arbitrage Fund | Hybrid | Low |
Tata Arbitrage Fund | Hybrid | Low |
Bank of India Overnight Fund | Debt | Low |
The Bottom Line
Safe assets such as U.S. Treasury securities, high-yield savings accounts, money market funds, and certain types of bonds and annuities offer a lower risk investment option for those prioritizing capital preservation and steady, albeit generally lower, returns.
- High-yield savings accounts.
- Certificates of deposit (CDs) and share certificates.
- Money market accounts.
- Treasury securities.
- Series I bonds.
- Municipal bonds.
- Corporate bonds.
- Money market funds.
Large cap funds that invest in large cap company stocks i.e stocks of well-established companies with sound financials are considered to be the least risky because these stocks are considered to be safer than stocks of mid cap and smaller companies.
- 9 Safest Index Funds and ETFs to buy in 2024. ...
- Vanguard S&P 500 ETF (VOO -1.0%) ...
- Vanguard High Dividend Yield ETF (VYM -0.09%) ...
- Vanguard Real Estate ETF (VNQ -1.21%) ...
- iShares Core S&P Total U.S. Stock Market ETF (ITOT -1.01%) ...
- Consumer Staples Select Sector SPDR Fund (XLP 0.24%)
Generally, equity funds are known to inherently carry the highest risk, followed by hybrid funds and, finally, debt funds. There can be variations in risk levels within the category of equity funds, too.
- Bond funds.
- Dividend stocks.
- Value stocks.
- Target-date funds.
- Real estate.
- Small-cap stocks.
- Robo-advisor portfolio.
- Roth IRA.
Stability & safety
While not insured by the FDIC, the funds are required by federal regulations to invest in short-maturity, low-risk investments, making them less prone to market fluctuations than many other types of investments.
Are Fidelity mutual funds safe?
By contrast, some other firms' funds might force you to hold positions in riskier technology stocks or commodity-based outfits as well. In short, your money is fairly safe in a Fidelity Investments mutual fund.
Bond funds, money market funds, index funds, stable value funds, and target-date funds are lower-risk options for your 401(k).
Treasury Bills, Notes and Bonds
U.S. Treasury securities are considered to be about the safest investments on earth. That's because they are backed by the full faith and credit of the U.S. government. Government bonds offer fixed terms and fixed interest rates.
Money market funds and other securities held in the Vanguard Brokerage Account are eligible for SIPC coverage. Securities in your brokerage account are protected up to $500,000. To learn more, visit the SIPC's website. Up to $250,000 by FDIC insurance.
- Invest in your 401(k) and get the matching dollars. ...
- Use a robo-advisor. ...
- Open or contribute to an IRA. ...
- Buy commission-free ETFs. ...
- Trade stocks.
Conventional wisdom holds that when you hit your 70s, you should adjust your investment portfolio so it leans heavily toward low-risk bonds and cash accounts and away from higher-risk stocks and mutual funds. That strategy still has merit, according to many financial advisors.
- Money market accounts.
- Online high-yield savings accounts.
- Cash management accounts.
- Certificates of deposit (CDs)
- Treasury notes, bills and bonds.
- Private credit.
- Individual stocks.
- Real estate.
- Fine art.
- Debt.
- A business.
- Private startups.
- Cryptocurrencies.
- Quant Flexi Cap Fund Growth Option Direct Plan. ...
- JM Flexicap Fund (Direct) Growth Option. ...
- Bank of India Flexi Cap Fund Direct Growth. ...
- ITI Flexi Cap Fund Direct Growth. ...
- Motilal Oswal Flexicap Fund Direct Plan Growth. ...
- Invesco India Flexi Cap Fund Direct Growth. ...
- Franklin India Flexi Cap Fund Direct Growth.
- Axis Bluechip Fund.
- Canara Robeco Bluechip Equity Fund.
- Mirae Asset Large Cap Fund.
- Baroda BNP Paribas Large Cap Fund.
- Edelweiss Large Cap Fund.
Which mutual fund is safe and highest return?
- Quant Flexi Cap Fund Growth Option Direct Plan. ...
- HSBC Small Cap Fund Fund Direct Growth. ...
- Motilal Oswal Midcap Direct Growth. ...
- SBI Magnum Children's Benefit Fund- Investment Plan Direct Growth. ...
- Quant Multi Asset Fund Growth Option Direct Plan. ...
- Tata Small Cap Fund Direct Growth.
Market risk
The single biggest risk in ETFs is market risk. Like a mutual fund or a closed-end fund, ETFs are only an investment vehicle—a wrapper for their underlying investment. So if you buy an S&P 500 ETF and the S&P 500 goes down 50%, nothing about how cheap, tax efficient, or transparent an ETF is will help you.
Summary. Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.
Fund (ticker) | YTD performance | 5-year performance |
---|---|---|
Vanguard S&P 500 ETF (VOO) | 6.5 percent | 14.6 percent |
SPDR S&P 500 ETF Trust (SPY) | 6.5 percent | 14.6 percent |
iShares Core S&P 500 ETF (IVV) | 6.5 percent | 14.6 percent |
Invesco QQQ Trust (QQQ) | 6.3 percent | 21.1 percent |
Multi Cap funds | 5-year-return (%) | AUM ( ₹crore) |
---|---|---|
Quant Active Fund | 29.56 | 8,536.79 |
Mahindra Manulife Multi Cap Fund | 24.38 | 3,018.70 |
Baroda BNP Paribas Multi Cap Fund | 20.82 | 2,240.27 |
Nippon India Multi Cap Fund | 21.22 | 26,660.45 |