Best Mutual Funds for High-Risk Investors: Top Equity, Hybrid, and Small-Cap Funds

To wisely invest and grow Rs. 10 lakhs, you can consider investing in equity mutual funds. Most of these funds are highly diversified and invest across different sectors and companies.

However, before investing, you should ways assess your risk tolerance limit and determine whether you are a moderate or aggressive investor. Based on the findings, you can start investing in some of the best mutual funds. Let’s check out the top 7 options you can consider.

• To achieve capital appreciation, you can invest Rs. 10 lakhs in equity mutual funds.
• For moderate-risk investors, some best mutual funds are ICICI Prudential, Nippon India Retirement Fund, and Tata Retirement Savings Fund.
• Aggressive investors can consider small-cap funds like Quant Small Cap and Bank of India Small Cap Fund. They carry a higher risk and focus on high-growth sectors.

If you carry a moderate risk and want to invest Rs. 10 lakh for long-term financial growth, you can consider the following best mutual fund schemes:

1. ICICI Prudential Retirement Fund - Pure Equity - Growth Option

This mutual fund is focused on generating capital appreciation for long-term investors. Primarily, it invests in equity and equity-related securities. This scheme practices diversification and invests in several sectors:

• Metals and mining: 12.07%
• Financial: 11.33%
• Capital goods: 10.86%
• Materials: 9.93%
• Automobile: 9.49%

The expense ratio of this scheme is 2.19%, and assets under management are Rs. 119.53 crore. Some notable companies in which this fund invests are Bharti Airtel, Ambuja Cements, Ultratech Cement, DLF, and Interglobe Aviation.

2. ICICI Prudential Retirement Fund - Hybrid Aggressive - Growth Option

This is a diversified mutual fund scheme that invests in equities, debt instruments, gold, and even REITs. Its primary goal is to create wealth for long-term investors. The sector-wise allocation of this fund is:

• Metals and mining: 11.32%
• Capital goods: 10.14%
• Financial: 9.18%
• Services: 7.59%
• Materials: 6.98%

The expense ratio of this scheme is 2.32 %, and assets under management are Rs. 119.53 crore. Some notable investments are Interglobe Aviation, Ambuja Cements, Bharti Airtel, and Ultratech Cement

3. Nippon India Retirement Fund - Wealth Creation Scheme - Growth Plan

This scheme aims to achieve retirement goals and helps you build a sizeable corpus. It invests in a mix of securities comprising equity and fixed-income securities. The sector-wise allocation of this mutual fund is:

• Financial: 26.49%
• Capital goods: 11.74%
• Technology: 10.65%
• Energy: 10.11%
• Automobile: 6.19%

The expense ratio of this scheme is 1.91%, and assets under management are Rs. 163.15 crore. Some notable investments are ICICI Bank, HDFC Bank, Reliance Industries, Tata Consultancy, and Infosys.

4. Tata Retirement Savings Fund Progressive Plan - Regular Plan - Growth Option

This fund offers long-term financial security to investors by putting money across different sectors and companies. The sectoral allocation of this scheme is:

• Financial: 14.98%
• Services: 14.15%
• Consumer staples: 12.39%
• Capital goods: 11.06%
• Energy: 10.92%

The expense ratio of this scheme is 2%, and assets under management are Rs. 174.93 crore. Some notable companies in which the mutual fund has invested are HDFC Bank. Reliance, ITC, Solar Industries, and ICICI Bank.

If you are an aggressive investor and can tolerate the high risk of equities, the following best mutual fund schemes can be considered:

1. Quant Small Cap Fund- Growth - Regular Plan

This fund aims to outperform the market and generate high returns by investing in small-cap companies. The sector-wise allocation of this fund is:

• Financials: 25.14%
• Energy: 14.50%
• Services: 11.75%
• Healthcare: 8.06%
• Construction: 7.78%

The expense ratio of this scheme is 1.60 % and assets under management are Rs. 24,529.77 crore. Some notable investments are Reliance Industries, JIO Financial, Aegis Logistics, Aditya Birla Fashion and Retail.

2. Quant Infrastructure Fund - Growth Option

This fund focuses on infrastructure companies and invests in equity and equity-related securities. The sector-wise allocation of this fund is:

• Energy: 23.72%
• Metals and Mining: 14.98%
• Financial: 12.50%
• Construction: 11.17%
• Services: 9.48%

The expense ratio of this scheme is 1.87% and assets under management are Rs. 4,103.61 crore. Some notable companies in which the fund has invested are HDFC Bank, Reliance Insudtries, Samvardhana Motherson, Tota Power, and Life Insurance.

3. Bank of India Small Cap Fund Regular Plan - Growth

This fund also invests in small-cap companies and tries to generate long-term capital appreciation for investors. To generate more balanced returns, the mutual fund invests in multiple sectors. The allocation is split as follows:

• Capital goods: 19.27%
• Healthcare: 12.33
• Financial: 11.50%
• Services: 9.93%
• Consumer staples: 9.41%

The expense ratio of this scheme is 2.08% and assets under management are Rs. 1,341.05 crore. Some notable investments of this fund are Castrol India, Amara Raja Energy and Mobility, Ami Organics, and Vijaya Diagnostic Centres.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 7.75% p.a.