Mutual funds are popular investment options among retail investors looking to enter the stock market. Investors looking to invest their money in mutual funds get immense exposure to a wide range of instruments. Although they do not become the purchased stocks’ direct owners, the returns are high with minimal risk involved.
Considering the extensive jargon of different types of mutual funds, ranging from debt instruments to multi-asset and hybrid mutual funds, finding the best mutual fund to invest now becomes challenging for first-time or novice investors.
Here’s a look at the best mutual funds in India in 2023.
Axis Small Cap Fund
Delivering annualised returns of 23.45% in the last five years and 35.96% over the previous three years, the Axis Small Cap Fund is an equity fund of Axis Mutual Funds. The minimum investment amount through lump sum is ₹ 500, and through SIP is ₹ 100. With an AUM of ₹ 15,025 Cr., this is one of the most lucrative mutual funds to invest in 2023.
Canara Robeco Bluechip Equity Fund
Launched in 2010, this large-cap equity fund has been performing extraordinarily to generate superior returns for investors. The major advantage of investing in a large-cap company is its brand equity, economic moat, and strong balance sheet. Apart from high returns over the last three, five, and seven years, the fund has also generated alpha over the benchmark index. Therefore, it has a high potential to generate risk-adjusted returns even under stressful market conditions.
Parag Parikh Flexi Cap Fund
It is the best mutual fund to invest now in the flexi-cap fund category. Investing at least 65% of its assets in equity and related instruments, it has a dynamic asset allocation across small, mid, and large-cap stocks. Launched in 2013, the orientation of this fund is towards value-style investing aiming at quality stocks delivering attractive valuations. The fund is also exposed to foreign company stocks like Microsoft, Meta, and Amazon.
Kotak Equity Opportunities Fund
It is a large and mid-cap, equity-oriented fund with a minimum investment of 35% in equity and related instruments of large and mid-cap companies. This combination delivers high growth potential and financial stability to investors looking for performance and growth opportunities. The fund has a diverse portfolio with stocks spread across the market caps. Over the past few years, it has performed well across diverse market situations, rewarding investors over the market cycle.
Quant Mid Cap Fund
Being a mid-cap fund, it invests at least 65% of its assets in equity and related instruments of mid-cap companies. Since these stocks come from smaller companies, they have high resilience to market downturns. At the same time, they have a high potential to generate good returns during bull market phases when the stocks of underlying companies have yet to start growing. Therefore, investors with a decent risk appetite with a horizon of 5-7 years may consider investing in these funds in 2023.
SBI Small Cap Fund
Compared to other fund types, small-cap funds like this are risky but have the potential to generate high returns. Investing at least 65% of their assets in equity and related instruments of small-cap companies, these are the best mutual fund to invest in now for investors with a decent risk appetite and a horizon of 7-10 years. Launched in 2009, it is the second-largest small-cap fund scheme due to its long-term track record of superior performance. Over the last seven years, it has crossed its benchmark with more than 8% points.
ICICI Pru Value Discovery Fund
Investing in value funds is a time-tested strategy where investors must identify stocks trading below their essential value. These funds invest at least 65% of their assets in value stocks that perform well even during falling market conditions. Launched in 2004, they are the best value-oriented mutual fund schemes to invest in 2023.Those looking for the best mutual funds to invest in now must identify the most appropriate option suitable to their investment goals, risk appetites, and time horizons. Checking the fund’s history and performance is also crucial. Ensure fund consistency and the fund manager’s performance before making the final decision. Invest in a SIP investment plan to invest in mutual funds in instalments and build wealth steadily.