Top 5 funds with low volatility

The rising bond yields as well as trade war fears have made markets much more volatile than they were in the past couple of years. Markets had witnessed a bull run in the past two years, but now with the uncertainties in the global markets, the benchmark indices Sensex and Nifty have been fallen almost by 7 per cent since January.

The sharp downfall has affected mutual fund industry and also the returns have turned red for many of the schemes which has created a worry for many investors. Investors are looking at various option for investment but are unable to filter out the exact schemes which will be able to survive in the current market situation.

To find a solution, we analysed all the schemes from Large-cap, Mid-cap, Small-cap and Multi-cap categories to determine which schemes have the lowest volatility with respect to the current market situation. Beta is one of the widely used statistical tool to gauge volatility, beta reveals how much a fund's performance would swing as compared to the benchmark. Therefore, a lower beta always suggests a lower volatility with respect to the market.

With the rising volatility, investors are expected to be more concerned about returns and are advised to check the volatility of the funds with the help of beta. However, the sole aspect can’t be a decisive factor, but still investor should check beta before investing into any particular scheme.

According to our data analysis, below mentioned schemes are the schemes with the lowest volatility.

The above-mentioned funds seem to be safer with their lower beta with respect to the current market volatility. However, investors are advised to research other aspects besides beta, as beta can't be a sole factor to develop an investment decision, but it can be a guiding factor in the current volatile market.