It is natural for people to be interested in investing in a mutual fund because it is an effective way to make money in the market. That’s why more and more people are heading toward the capital market and investing their money in stocks, mutual funds (MFs), bonds, and other securities.
But before we dive deep into the best mutual fund to invest in 2023, I think we must talk a little bit more about mutual funds to understand them better.
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What is Mutual Fund?
It is an investment vehicle that pools together the money of multiple investors and uses it to buy a diversified portfolio of stocks, bonds, and other securities. Such portfolios are managed by professional fund managers, who use their expertise and knowledge of the market to select securities and allocate the fund’s assets in a way that aims to achieve the fund’s investment objectives.
It offers investors several benefits, including professional management, diversification, and convenience. They also provide investors with an opportunity to participate in a wide range of investment options, such as equities, fixed income, and money market instruments, that may be difficult or costly for an individual to access on their own.
There are various types of mutual funds available in India, including equity funds, debt funds, and hybrid funds, which combine both equity and debt securities in their portfolio. Investors can carefully choose a mutual fund that aligns with their investment goals and they must also know about the charges and risks involved in this.
Who Should Invest in Mutual Funds?
Many professional investors and traders with stock market knowledge and expertise, do not prefer to invest in MFs because they believe they can make more money themselves rather than investing in MFs.
This could be true for them but certainly not for all. People with limited knowledge or no knowledge about the stock market can cause losses. Hence, it is advised that people who don’t have sufficient knowledge about the securities market should invest in MFs.
Here is why people should invest in MFs:
- Professional Management: The company hires well-educated and professional fund managers to manage their funds. They do all the math and try to achieve a higher return on their investment for the company and its investors.
- Convenience: MFs are convenient and affordable. Investors can choose the plan that is in their budget. They get a chance to choose how long they want to invest.
- Low Risks: Because of the diverse portfolio and range of companies and industries, MFs are considered low-risk instruments compared to investing in the stock market directly.
10 Mutual Funds to Invest in 2023
There are many options available in the market to choose from. But choosing the right mutual fund out of them can be challenging. Luckily, we are here to simplify that for you. We are going to talk about 10 MFs which are good enough to look forward to in 2023.
1. HDFC Index S&P BSE Sensex
We selected it because it has a low expense ratio. Also, this particular mutual fund provides exposure to the broader markets.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 8.0% | 14.3% | 13.3% |
| Others in the same category | 6.2% | 14.4% | 11.1% |
| Fund Size | ₹4214.10 Cr. |
| Overall Returns | 13.2% |
| Expense Ration | 0.20% |
| Minimum Investment | ₹100 |
| Risk Involved | High |
2. Kotak Equity Opportunities Fund
Kotak Equity Opportunities Fund has shown lower volatility compared to its peers in the same category. People who are looking for a low-risk mutual fund should consider it.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 10.5% | 19.0% | 13.0% |
| Others in the same category | 3.8% | 17.3% | 9.8% |
| Fund Size | ₹11,662.47 Cr. |
| Overall Returns | 16.3% |
| Expense Ration | 0.59% |
| Minimum Investment | ₹1,000 |
| Risk Involved | Medium |
3. SBI Small Cap Fund
SBI Small Cap Fund has managed the downside better than the average small-cap category. And the fund’s portfolio turnover ratio has been very low, which indicates its stock picks, conviction, analysis, and strategy has played out very well.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 11% | 29.7% | 13.7% |
| Others in the same category | 2.3% | 30.0% | 10.7% |
| Fund Size | ₹15,335.11 Cr. |
| Overall Returns | 25.7% |
| Expense Ration | 0.71% |
| Minimum Investment | ₹500 |
| Risk Involved | High |
4. Axis Small Cap Fund
The fund manager prefers companies with strong promoter pedigree and a great balance sheet during stock selection. They look for stability before they leap.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 7.2% | 28.2% | 18.3% |
| Others in the same category | 2.3% | 30.0% | 10.7% |
| Fund Size | ₹11,358.11 Cr. |
| Overall Returns | 24.1% |
| Expense Ration | 0.51% |
| Minimum Investment | ₹100 |
| Risk Involved | High |
5. Parag Parikh Tax Saver Fund
Parag Parikh Tax Saver Fund has almost the same set of domestic stocks in its tax saver fund and Flexi cap fund which indicates that the fund manager is pretty confident about his bets and provides you with not only tax-saving benefits but also growth in ELSS.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 9.5% | 24.3% | – |
| Others in the same category | 4.3% | 15.9% | – |
| Fund Size | ₹900.86 Cr. |
| Overall Returns | 23.9% |
| Expense Ration | 0.88% |
| Minimum Investment | ₹1,000 |
| Risk Involved | High |
6. SBI Contra Fund
SBI Contra Fund provide the investor with the opportunity of long-term capital appreciation by investing a diverse portfolio.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 15.4% | 31.0% | 14.0% |
| Others in the same category | 7.5% | 19.0% | 10.6% |
| Fund Size | ₹7,204.54 Cr. |
| Overall Returns | 15.1% |
| Expense Ration | 1.04% |
| Minimum Investment | ₹500 |
| Risk Involved | High |
7. HDFC Flexi Cap Fund
HDFC Flexi Cap Fund seeks to generate capital appreciation and income from portfolio.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 20.6% | 20.1% | 15.3% |
| Others in the same category | 2.9% | 14.8% | 9.8% |
| Fund Size | ₹32,893.71 Cr. |
| Overall Returns | 15.3% |
| Expense Ration | 1.04% |
| Minimum Investment | ₹100 |
| Risk Involved | High |
8. ICICI Prudential Large & Mid Cap Fund
ICICI Prudential Large and Mid Cap Fund is a good option for the investors who are looking to gain high returns in 3-5 years.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 15.2% | 22.1% | 12.9% |
| Others in the same category | 3.8% | 17.3% | 9.8% |
| Fund Size | ₹6,183.32 Cr. |
| Overall Returns | 15.3% |
| Expense Ration | 1.11% |
| Minimum Investment | ₹100 |
| Risk Involved | High |
9. Nippon India Large Cap Fund
Nippon India Large Cap is one of the most popular mutual funds in India. The data shows how good the company is doing. However, the expense ratio is a little bit high.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 14.0% | 16.4% | 11.6% |
| Others in the same category | 6.2% | 14.4% | 11.1% |
| Fund Size | ₹12,921.93 Cr. |
| Overall Returns | 15.1% |
| Expense Ration | 1.01% |
| Minimum Investment | ₹100 |
| Risk Involved | High |
10. Quant Mid Cap Fund
Quant Mid Cap Fund is one of those mutual funds which has the potential to earn good returns in the future.
| Remark | 1 Year | 3 Years | 5 Years |
| Returns | 19.1% | 37.7% | 20.8% |
| Others in the same category | 4.8% | 22.7% | 10.3% |
| Fund Size | ₹1,272.71 Cr. |
| Overall Returns | 17.0% |
| Expense Ration | 0.63% |
| Minimum Investment | ₹1,000 |
| Risk Involved | High |
Disclaimer
Investment contains risks, and so does mutual funds. This blog post is only for educational purposes. We are not advising or recommending anyone to invest in any of these mutual funds. Please consult your financial adviser before making any investment decision. Thank you!