Introduction
Investing in mutual funds often involves balancing risk with reward. For 2025, high-risk mutual funds are gaining traction among investors willing to accept volatility for the potential of superior returns. These funds cater to investors with a higher risk appetite, seeking aggressive growth and long-term wealth creation.
Here’s a curated list of some of the best high-risk mutual funds that you can consider to supercharge your investment portfolio in 2025.
1. Parag Parikh Flexi Cap Direct Growth
Parag Parikh Flexi Cap is a standout performer in the mutual fund space, offering diversification across various market caps and geographies. With a robust fund size of ₹87,539.41 crore and a stellar five-year return of 24.8%, this fund has consistently delivered exceptional results. In the past year alone, it has generated a return of 20.1%, reflecting its ability to navigate market challenges effectively.
As of January 16, 2025, the Net Asset Value (NAV) stands at ₹86.04. The fund requires a minimum SIP of ₹1,000, making it accessible for those ready to embrace higher risks for higher rewards. This fund is ideal for investors who seek exposure to a diversified portfolio with a global perspective.
2. Kotak Small Cap Fund (G)
Small-cap stocks often hold the promise of substantial growth, and the Kotak Small Cap Fund is designed to capitalise on this potential. The fund’s primary objective is to generate capital appreciation by investing in small-cap companies across various sectors. With a total asset base of ₹17,780 crore as of December 31, 2024, and an expense ratio of 1.64%, this fund is well-equipped to spot emerging companies poised for growth.
The fund’s philosophy, “spot them young and watch them grow,” highlights its focus on identifying businesses in their early stages of development. A minimum initial investment of ₹100 makes it an attractive option for first-time investors looking to explore small-cap opportunities.
3. Kotak Equity Hybrid Fund (G)
For investors seeking a blend of equity and debt, the Kotak Equity Hybrid Fund offers a balanced yet aggressive approach. As of January 15, 2025, this fund boasts an NAV of ₹58.788 and a total fund size of ₹6,913.47 crore. The fund invests 75.07% in domestic equities, strategically spread across large-cap, mid-cap, and small-cap stocks.
Additionally, 20.93% of its portfolio is allocated to debt instruments, including government securities and low-risk options. With an expense ratio of 1.76%, this hybrid fund caters to investors who aim to balance high-risk equity investments with the stability of debt.
4. Quant Small Cap Fund (G)
Known for its high-growth potential, the Quant Small Cap Fund is another excellent choice for high-risk investors. With an impressive Asset Under Management (AUM) of ₹26,670.21 crore as of January 16, 2025, this fund has been a consistent performer. It offers a three-year CAGR of 20.67% and a one-year return of 12.53%, demonstrating its resilience in volatile markets. The NAV currently stands at ₹251.03, with a minimum investment requirement of ₹5,000. The expense ratio of 1.60% is competitive, making this fund a preferred option for those willing to invest in small-cap stocks with significant growth potential.
5. Old Bridge Focused Equity Fund - Direct Plan
For investors looking to focus on a concentrated portfolio of high-quality stocks, the Old Bridge Focused Equity Fund is a compelling choice. As of January 16, 2025, the fund’s NAV is ₹11.32, with a fund size of ₹1,075.64 crore. Its focused investment approach allows the fund to allocate resources to a select few stocks, ensuring higher potential returns.
The minimum SIP requirement is ₹2,500, and the expense ratio is a low 1.19%, offering cost efficiency. This fund is suitable for seasoned investors who understand the dynamics of focused investing and are comfortable with a concentrated portfolio’s risks and rewards.
Conclusion
High-risk mutual funds come with the potential for outsized returns, making them attractive to investors with long-term horizons. These funds often invest in small-cap stocks, hybrid strategies, or focused portfolios, aiming to outperform broader market indices. While they carry a higher level of volatility, the rewards can be substantial for those willing to stay invested through market fluctuations.
While high-risk mutual funds are an excellent option for aggressive growth, it is essential to assess one’s risk tolerance, investment goals, and time horizon. Diversification is critical to mitigate risks associated with market volatility. Always consult a financial advisor like Motilal Oswal to align your investments with your financial objectives. These funds are not for the faint-hearted, but with the right strategy and a disciplined approach, investing in these funds can set you on the path to financial success in 2025.
Embrace the challenge, and let your investments grow!
Financial Calculators: SWP Calculator | EMI Calculator | SIP Calculator | Compound Interest Calculator | CAGR Calculator | Sukanya Samriddhi Yojana Calculator | Retirement Calculator | Mutual Fund Returns Calculator | EPF Calculator | Inflation Calculator
Popular Stocks: ICICI Bank Share Price | HDFC Bank Share Price | CDSL Share Price | UPL Share Price | TCS Share Price | BHEL Share Price | Trident Share Price | IRFC Share Price | Adani Power Share Price