Currently we are using jira version 5.2. We are planning to upgrade to version 6.1. is it a recommended version? Is there any chances of data/functionality loss ? kindly suggest a version which I could upgrade to.
I'd recommend 6.3 over 6.1 - more functions, more improvements, more bug fixes, etc.
Data loss - no, you won't lose data if you do upgrade as per the upgrade guides in the docs.
Functionality loss - not really, but you should read the release notes for 6.0, 6.1 and other major revisions to see what changes and what gets added
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