Safest Mutual Funds With Good Returns in India (2026)
Live · updated 2026-09-16 Ranked by data, refreshed from daily NAVs
'Safe' is relative in market-linked funds - these are schemes whose worst-ever fall stayed shallower than 30% while still compounding above 10% a year over three years. This page is recomputed from NAV data every day, so it cannot go stale, and every fund on it links to a full research page with returns, risk, SIP outcomes, holdings and manager track record.
'Safe mutual fund' is technically a contradiction - anything market-linked can fall. But safety in practice is a spectrum, and it is measured by drawdown: how deep the fund's worst falls get. This list takes that definition seriously - every fund on it has kept its worst-ever fall shallower than 30% while still compounding above 10% a year over the last three years.
That filter quietly does something interesting: it surfaces mostly hybrid and disciplined equity funds - the vehicles built to cushion falls - and excludes the racy category leaders whose headline returns come with 50% drawdowns attached. The trade is explicit: you give up some upside for a ride you can actually sit through. For many investors, that trade is the difference between staying invested and selling at the bottom, which matters more than any ranking.
Tap any column heading to sort. Every fund name links to its full review.
| # | Fund | RS | King | 3M | 6M | 1Y | 3Y CAGR | 5Y CAGR | 10Y CAGR | Sharpe | Roll 3Y | Worst fall |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Mahindra Manulife Balanced Advantage Fund | 99 | 100 | 1.7% | 6.9% | 3.2% | 10.5% | n/a | n/a | 0.38 | 14.3% | -9.8% |
| 2 | WhiteOak Capital Large Cap Fund | 88 | 97 | 0.6% | 4.2% | -1.4% | 12.2% | n/a | n/a | 0.4 | 17.7% | -15.2% |
| 3 | WhiteOak Capital ELSS Tax Saver Fund | 80 | 96 | 3.2% | 11.7% | 2.1% | 15.3% | n/a | n/a | 0.58 | 21.7% | -16.4% |
| 4 | WhiteOak Capital Mid Cap Fund | 96 | 96 | 4.1% | 18.5% | 12.2% | 21.0% | n/a | n/a | 0.87 | 27.1% | -19.3% |
| 5 | Axis Value Fund | 92 | 95 | 3.6% | 10.3% | 7.0% | 17.1% | n/a | n/a | 0.72 | 23.2% | -20.2% |
| 6 | HSBC Aggressive Hybrid Fund | 90 | 95 | 3.0% | 10.8% | 4.9% | 12.6% | n/a | n/a | 0.43 | 15.7% | -19.6% |
| 7 | ITI Focused Fund | 69 | 95 | -1.0% | 9.8% | 7.7% | 16.8% | n/a | n/a | 0.61 | n/a | -18.4% |
| 8 | WhiteOak Capital Balanced Advantage Fund | 97 | 94 | 2.9% | 7.1% | 3.0% | 11.3% | n/a | n/a | 0.55 | 13.1% | -9.5% |
| 9 | Bajaj Finserv Flexi Cap Fund | 74 | 94 | 1.8% | 11.9% | 4.3% | 16.3% | n/a | n/a | 0.7 | n/a | -17.5% |
| 10 | DSP Value Fund | 71 | 93 | -1.6% | 5.1% | 5.8% | 15.1% | 12.1% | n/a | 0.71 | 18.7% | -16.4% |
| 11 | Invesco India Flexi Cap Fund | 72 | 92 | 3.2% | 13.3% | -0.3% | 16.7% | n/a | n/a | 0.62 | 22.6% | -19.4% |
| 12 | BARODA BNP PARIBAS ELSS Tax Saver Fund | 72 | 92 | 1.1% | 7.5% | 3.4% | 14.2% | n/a | n/a | 0.5 | 19.8% | -17.3% |
| 13 | Edelweiss Aggressive Hybrid Fund | 69 | 90 | 0.8% | 4.8% | 1.5% | 12.4% | 12.9% | 13.4% | 0.52 | 15.8% | -28.6% |
| 14 | Axis Multicap Fund | 90 | 90 | 5.9% | 16.4% | 8.0% | 18.3% | n/a | n/a | 0.77 | 22.8% | -18.1% |
| 15 | BARODA BNP PARIBAS LARGE CAP Fund | 84 | 90 | -0.1% | 3.8% | -0.8% | 10.5% | n/a | n/a | 0.29 | 16.7% | -18.2% |
This list returns: 1 month to 10 years𝕏 Share this statWhatsApp
Over the last 1 year, the funds on this list averaged 5.6% - the best, quant ESG Integration Strategy Fund, returned 18.7% while the weakest managed -8.9%. That spread is why picking within the funds on this list matters. Over 10 years the average compounding rate is 13.0% a year, which turned ₹1 lakh into about ₹339,500.
| Period | Average | Median | Best fund | Weakest |
|---|---|---|---|---|
| 1 month | -3.0% | -3.0% | quant Healthcare Fund (1.9%) | -6.0% |
| 3 months | 2.2% | 1.7% | Axis Innovation Fund (12.4%) | -4.1% |
| 6 months | 10.6% | 10.1% | LIC MF Small Cap Fund (29.4%) | 0.0% |
| 1 year | 5.6% | 5.0% | quant ESG Integration Strategy Fund (18.7%) | -8.9% |
| 3 years (CAGR) | 14.7% | 14.3% | HDFC Transportation and Logistics Fund (24.1%) | 10.1% |
| 5 years (CAGR) | 12.4% | 12.3% | Bandhan Small Cap Fund (19.1%) | 8.3% |
| 10 years (CAGR) | 13.0% | 12.1% | Axis Midcap Fund (17.6%) | 9.4% |
Averages across every qualifying fund, refreshed daily. Best-fund links open that fund's full review.
What ₹1 lakh became
The same returns, translated into money - at the average pace and at the best fund's pace:
| Held for | Average pace | ₹1 lakh → (average) | ₹1 lakh → (best fund) |
|---|---|---|---|
| 1 year | 5.6% a year | ₹105,600 | ₹118,700 |
| 3 years | 14.7% a year | ₹150,900 | ₹191,100 |
| 5 years | 12.4% a year | ₹179,400 | ₹239,600 |
| 10 years | 13.0% a year | ₹339,500 | ₹505,900 |
Pre-tax, from historical returns. The averages smooth over a very bumpy ride - see the worst-fall column in the ranking above for what the journey involved.
This list by the numbers
| Funds that qualify | 142 |
| Combined assets | ₹753,624 Cr |
| Average 3-year return | 14.7% a year (best 24.1%, weakest 10.1%) |
| Average 5-year return | 12.4% a year |
| Average worst-ever fall | -20.7% (deepest: -29.9%) |
| Average expense ratio (Direct) | 0.74% |
| Largest fund by assets | SBI Equity Hybrid Fund (₹84,010 Cr) |
Put the risk number in rupees: at the average worst fall of -20.7%, ₹1 lakh temporarily becomes about ₹79,300. That is the stretch every ranked fund's investors had to sit through at some point - the ranking rewards the funds that made that wait worthwhile.
Momentum check: what is hot right now
As of 2026-09-16, 29 of the 142 funds here rate RS 90 or above (top-decile recent momentum versus peers). The strongest momentum belongs to Mahindra Manulife Balanced Advantage Fund (RS 99/99). Average return over the last 3 months: 2.2%; over 6 months: 10.6%. Momentum is a snapshot, not a ranking criterion here - but it tells you whether this corner of the market is currently in favour.
Before you pick a lower-risk fund: four checks
- Read the worst-fall figure in rupees on each fund's page - 'shallow' still means temporary five-figure losses on a ₹1 lakh holding.
- Check the bear-market return: how the fund behaved when the Nifty was below its 200-day average is its real stress test.
- Understand what generates the cushion - debt allocation, hedging or style - so you know when it might not work.
- If you need zero drawdowns, this is the wrong asset class entirely; that is what deposits are for.
Every fund page prints the deepest peak-to-bottom fall in rupees, not just percent - plus the best and worst 12-month stretch it ever handed an investor.
How to read the table
RS (1-99) is recent momentum versus category peers - 99 is the hottest right now. King (0-100) is the long-term quality composite this list is ranked by. 3M/6M are recent returns; 3Y and 5Y CAGR are annualised longer records. Sharpe is return earned per unit of volatility - higher means smoother compounding. Roll 3Y is the median of every 3-year holding period in the fund's history, the fairest single return number a fund has. Worst fall is the deepest peak-to-bottom loss ever - the number that tests whether you would have stayed invested. Missing values show as n/a, usually because the fund is too young for that measurement.
The top 10, decoded𝕏 Share this statWhatsApp
- Mahindra Manulife Balanced Advantage Fund (Balanced Advantage Fund/ Dynamic Asset Allocation) - King Score 100/100, RS 99/99 right now. 3-year return 10.5% a year, against a worst-ever fall of 9.8% (₹1 lakh briefly ₹90,200). Median 3-year rolling return 14.3%, sharpe 0.38.
- WhiteOak Capital Large Cap Fund (Large Cap Fund) - King Score 97/100, RS 88/99 right now. 3-year return 12.2% a year, against a worst-ever fall of 15.2% (₹1 lakh briefly ₹84,800). Median 3-year rolling return 17.7%, sharpe 0.4.
- WhiteOak Capital ELSS Tax Saver Fund (ELSS) - King Score 96/100, RS 80/99 right now. 3-year return 15.3% a year, against a worst-ever fall of 16.4% (₹1 lakh briefly ₹83,600). Median 3-year rolling return 21.7%, sharpe 0.58.
- WhiteOak Capital Mid Cap Fund (Mid Cap Fund) - King Score 96/100, RS 96/99 right now. 3-year return 21.0% a year, against a worst-ever fall of 19.3% (₹1 lakh briefly ₹80,700). Median 3-year rolling return 27.1%, sharpe 0.87.
- Axis Value Fund (Value Fund) - King Score 95/100, RS 92/99 right now. 3-year return 17.1% a year, against a worst-ever fall of 20.2% (₹1 lakh briefly ₹79,800). Median 3-year rolling return 23.2%, sharpe 0.72.
- HSBC Aggressive Hybrid Fund (Aggressive Hybrid Fund) - King Score 95/100, RS 90/99 right now. 3-year return 12.6% a year, against a worst-ever fall of 19.6% (₹1 lakh briefly ₹80,400). Median 3-year rolling return 15.7%, sharpe 0.43.
- ITI Focused Fund (Focused Fund) - King Score 95/100, RS 69/99 right now. 3-year return 16.8% a year, against a worst-ever fall of 18.4% (₹1 lakh briefly ₹81,600). Sharpe 0.61.
- WhiteOak Capital Balanced Advantage Fund (Dynamic Asset Allocation or Balanced Advantage) - King Score 94/100, RS 97/99 right now. 3-year return 11.3% a year, against a worst-ever fall of 9.5% (₹1 lakh briefly ₹90,500). Median 3-year rolling return 13.1%, sharpe 0.55.
- Bajaj Finserv Flexi Cap Fund (Flexi Cap Fund) - King Score 94/100, RS 74/99 right now. 3-year return 16.3% a year, against a worst-ever fall of 17.5% (₹1 lakh briefly ₹82,500). Sharpe 0.7.
- DSP Value Fund (Value Fund) - King Score 93/100, RS 71/99 right now. 3-year return 15.1% a year, against a worst-ever fall of 16.4% (₹1 lakh briefly ₹83,600). 5-year pace 12.1% a year, median 3-year rolling return 18.7%, sharpe 0.71.
Frequently asked questions
Which is the best lower-risk fund right now?
On our data-driven ranking as of 2026-09-16, Mahindra Manulife Balanced Advantage Fund scores highest (King Score 100/100). That is a description of its record versus peers, not a recommendation - rankings move as NAVs update, and the right fund depends on your goals and risk tolerance.
Can these funds still lose money?
Yes. Every fund on this list has fallen before - just less deeply than -29.9%, the cutoff this list enforces. The average worst-fall here is -20.7%. 'Safest' means the falls have historically been survivable without panic, not that falls do not happen. Fixed deposits are the product without falls; they also compound far slower.
Why are so many hybrid funds on this list?
Because cushioning is their design. Hybrid and balanced-advantage funds hold debt precisely to absorb equity crashes, so they naturally dominate any screen built on shallow drawdowns plus decent returns. A pure equity fund appearing on this list is the rarer, more interesting signal.
What is the average 1-year return of lower-risk funds right now?
As of 2026-09-16, the 142 qualifying funds averaged 5.6% over the last year (median 5.0%). The best, quant ESG Integration Strategy Fund, returned 18.7%; the weakest returned -8.9%. One year is weather, not climate - check the 5 and 10 year columns before drawing conclusions.
Which lower-risk fund gave the highest return in the last 10 years?
Axis Midcap Fund leads with 17.6% a year over 10 years - ₹1 lakh became about ₹505,900 pre-tax. The average across funds with a 10-year record is 13.0% a year. A decade-long record says a lot about the past and nothing certain about the next decade.
How is this list ranked?
Equity and hybrid schemes with lifetime max drawdown shallower than -30% and 3-year CAGR above 10%, ordered by King Score. The full formulas are public - see our methodology page. No fund pays to be here and rankings cannot be bought.
Should I invest in the #1 fund on this list?
We cannot tell you that - MF Terminal is descriptive research, not investment advice. A top rank says the past record was strong versus peers. Read the fund's full page, check the drawdowns you would have to sit through, and decide against your own horizon.
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All figures pre-tax, from AMFI NAV history. Rankings are descriptive and change with the data. Nothing here is investment advice or a recommendation to buy, sell or hold any fund. Past performance does not guarantee future returns.