Best Performing Mutual Funds To Invest In 2023

If you are one of those who are seeking top mutual funds online, you probably would have come across sites that have compiled a long list of mutual funds schemes. Sometimes, it can prove daunting for the investors, which ends their pursuit right then and there. So, to tackle this problem, the Piramal group has released a ranking of the best mutual fund schemes.

One of the most common ways for people to put money to work is through mutual funds, which allows for diversified portfolios across a variety of asset classes without requiring the investor to take on the responsibility of managing their assets. Another benefit of mutual funds is the potential to gain exposure to a broader range of investments than a person would normally have access to. Investing via the best mutual funds in India has expanded over time. The top-performing funds in the market, as a result, are always shifting.

No matter how long or short your investment career has been, some mutual funds should be on your radar. In 2023, the following mutual funds are among the most promising ones you can invest in:

•   Axis Bluechip Fund

This fund is best suited to achieve long-term capital growth. It does that through a diversified portfolio made up of large-cap company share and equity-related securities, including derivatives. In domestic equities, the fund has an investment of 87.14%, of which 85.53% are large-cap stocks and 1.61% are mid-cap stocks. Government securities make up 0.82% of the fund’s investment in debt. It is suitable for those who want to make large gains and want to hold their investments for at least three to four years. Additionally, these investors need to be ready for the possibility of suffering slight asset losses at the same time.

•  Mirae Asset Large-Cap fund

It is an open ended equity scheme which predominantly invests across large-cap stocks. It can place up to 80% of its total assets in large cap stocks. It aims to combine consistency of large caps with few conviction midcap ideas, which is up to 20%. It has an investment of 99.61% in domestic equity, of which 83.93% is large-cap, 11.59% is mid-cap, and 4.09% are small-cap stocks. It is appropriate for investors seeking large profits and wishing to invest money for at least three to four years. Additionally, these investors need to be ready for the possibility of suffering slight asset losses at the same time.

•  Parag Parikh Long-Term Equity fund

This is a diversified equity scheme which is free from self-imposed restrictions ndustry, market capitalization, geography, etc. It invests 65% in Indian equities, out of which 53% is giant-cap, 21.33% is large-cap, 21.67 is mid-cap, 3.98% small cap, and 0.01% tiny-cap. Investors with a long-term horizon (three to four years) and a penchant for huge returns should consider this option. These traders also need to be ready to take the chance of experiencing moderate losses on their investments.

• UTI Flexi Cap Fund

UTI Flexi Cap Fund is a multi cap fund that invests across the market capitalisation spectrum. It is composed of high quality businesses that show strong growth for a long period of time, and are run by seasoned management. It has an equity of 85.6% in India, of which 45.23% are large-cap investments, 24.6% are mid-cap stocks, and 9.55% are small cap companies. Government securities make up 0.17% of the fund’s investment in debt. Those wishing to invest for at least three to four years and who want big returns should consider it. Additionally, these investors need to be ready for the possibility that they could simultaneously sustain slight losses on their holdings.

• Axis Midcap Fund

This fund primarily invests in equities and equity-related products of mid-cap companies. This is done to increase the capital over the long term. In domestic equities this fund has an investment of 86.91%, out of which 19.82% is large-cap, mid-cap investment is 66.08%, and 1.06% is small-cap investment. Government securities make up 0.61% of the fund’s investment in debt. 

• Kotak Emerging Equity Fund

The fund invests in domestic equities to the tune of 91.97%, of which 6.15% are large-cap stocks, 52.62% are mid-cap stocks, and 21.8% are small-cap stocks. Investors wishing to invest for at least three to four years and seeking substantial returns might consider it. These traders also need to be ready to take the chance of experiencing moderate losses on their investments.

Tips for Choosing The Best Mutual Fund to Invest in

• How much money do you hope to make? 

You should have a clear vision of your long-term financial objectives while considering a major investment. This will guide your choice between debt and equity financing to achieve your objectives. Depending on the various outcomes, you can use software like Google Sheets or Excel to find the optimal course of action, considering the risk tolerance, time horizon, liquidity needs,etc.  

• Perspective on Future Investments:

For what time frame do you see yourself keeping this investment? Short-term (less than five years) and long-term (five years or more) are the two main categories of best mutual fund investments (more than five years). If you are investing for the short-term, look for the stocks with a larger risk and higher potential returns. But, if you prefer playing safe and like consistent growth, go for the long-term.Always remember to invest in things that won’t ruin your life but will yield a tiny profit. 

•   Acceptance of Risk:

You must be aware of the risk that you are willing to take while investing in mutual funds. This will help you realize the potential financial gain that the stock offers.

• Expense Ratio:

The expenditure ratio covers the fund manager’s salary, advertising, and other fees. This amount should be below 1%, but if it’s higher and the fund has been earning good returns, it may be worth it to pay more for fees upfront rather than later when they would have eaten into your gains (or even worse-caused losses).

Conclusion

Over the past decade, Indian investors have found great success with mutual funds. They are a cheap and easy method to spread your investments around and increase your wealth while keeping your exposure to risk minimal. If you start your search with the word “best,” you probably won’t get the best results. Always consider your investment goals, time horizon, and risk tolerance before settling on a certain plan. As a company, we at Piramal Finance are familiar with the fundamentals of mutual funds and can help those who are new to both mutual funds and investing get started. You can also get easy and customised mutual fund investment and personal loan solutions with us.