Best Mutual Funds to Invest in 2023 India

Let us discuss what mutual funds are and why they are necessary for you. Then we will discuss the best mutual funds to invest in 2023 India.

What are Mutual Funds?

Mutual Funds are the best instruments available to invest your money to create a healthy corpus for the future, irrespective of what your goal is: your children’s education, their marriage, your self-independence, and many more. If you do not have any pension or rental income, then the only good option left for you after retirement is Mutual Funds

A mutual fund is a company that will pool all your money with that of other investors to invest in securities such as bonds, equity, and other instruments. The combined holding is called a portfolio.

Types of Mutual Funds

There are different types of mutual funds available on the market, which can confuse you. Let us discuss all the different mutual funds available, and you can choose the one that best suits your needs out of them. Broadly, there are four types of mutual funds, and then you have further subcategories. Let’s discuss them one by one.

Mutual Funds Based on Structure: A type of fund known as a “structured fund” combines equities and fixed-income securities to offer investors some degree of capital protection and capital growth.

  • Open-ended Funds
  • Close-ended Funds
  • Interval Funds

Asset Class: An asset class is a collection of investments that share similar traits and are governed by the same rules and laws.

  • Equity Funds
  • Debt Funds
  • Hybrid Funds
  • Target-set Funds
  • Other Funds

Investment Goal-based Mutual Funds: Every person has financial objectives that must be met in the short, medium, or long term. Goal-based investing refers to consistently making investments in order to achieve the desired financial goal.

  • Aggressive Growth Funds
  • Liquidity-based Funds
  • ELSS
  • Capital Protection Funds
  • FMF
  • Pension Funds
  • Fixed Maturity Funds

Financial Budget Allows: As your financial budget allows and as your risk appetite allows, you can invest in low-risk, medium-risk, or high-risk.

  • Low-risk Funds
  • Medium-risk Funds
  • High-risk Funds

Why do you need Mutual Funds?

If you are uncertain about your future or your retirement income, then these mutual funds are for you. They will not disturb the budget of your home or be heavy on your pocket. You can invest slowly over the years until your retirement. You also have the option to stop or pause the investment. You can also partially withdraw the amount in case of an emergency.

Benefits and Risks of Mutual Funds

Liquidity: One of the most important benefit of mutual funds is that an investor can redeem the the units at any point
Diversification: It can never happen that all your funds are not working at the same time. If one fund is not working, then one will be giving you a good profit. So, you can always redeem from the funds that are in green light at that moment.
Flexibility of Instalments: You can start from as low as Rs 500 per month. You can even invest monthly or quarterly as per your budget.
Freedom of Buying & Selling: Mutual Funds are easily accessible and you can buy them from anywhere in the world with ease. AMCs offer the funds and provide you throughout channels like:

  • AMCs themselves
  • Brokerage Firms
  • Registrars like CAMS
  • Agents and Banks

Online Mutual Fund Investment Platforms

Choose the best AMC for the best results.
Scheme for Every Financial Goal: Irrespective of your goal, there are mutual funds available for all types of schemes. Choose the best that suits your needs.
Freedom of Low Investment: As the funds are collected from many investors and the same is used to purchase the securities, individually you can even start from Rs 500. Some funds even allow you to invest Rs. 100. Check thoroughly for such mutual fund or hire a wealthcare management company like WC Securities Pvt. Ltd. who has two decades of experience in mutual funds and other wealthcare management strategies.

Tax Saving Option: Mutual Funds provide the best Tax-saving option. ELSS Mutual Fund have a tax exemption of Rs. 1.5 lakhs a year under section 80C. They also deliver higher returns than PPF, NPS, etc. other than saving tax for you.

The risks compared to the benefits are very few: Only in very rare cases will a mutual fund will not perform, but if you have patience it will be bound to give you profit. Sometimes diversification can decrease your profit too.

Best Mutual Funds to Invest in 2023 India

We have shortlisted the three best mutual funds from all the categories for you that can perform well in 2023, which you can consider investing in.

  • From the Large Cap Equity Funds
  • Axis Bluechip Fund
  • IDBI India Top 100 Equity Fund
  • Canara Robeco Bluechip Equity Fund
  • From the Mid Cap Equity Funds
  • Axis Midcap Fund
  • Kotak Emerging Equity Scheme
  • Invesco India Mid Cap Fund
  • From the Small Cap Equity Funds
  • SBI Small Cap Fund
  • Nippon India Small Cap Fund
  • HDFC Small Cap Fund
  • From the Multi Cap Equity Funds
  • Parag Parikh Long Term Equity Fund
  • UTI Equity Fund
  • Mahindra Badhat Yojana
  • From the Equity Linked Saving Schemes
  • Canara Robeco Equity Tax Saver
  • Mirae Asset Tax Saver Fund
  • IDFC Tax Advantage Fund
  • From the Sector Equity Funds
  • ICICI Prudential Technology Fund
  • Aditya Birla Sun Life Digital India Fund
  • TATA Digital India Fund
  • From the Value Equity Funds
  • IDFC Sterling Value Fund
  • Nippon India Value Fund
  • ICICI Prudential Value Discovery Fund
  • From the Focussed Equity Funds
  • SBI Focussed Equity Fund
  • Axis Focussed 25 Fund
  • Franklin India Focussed Equity Fund

The Bottom Line

We are sure by now you understand how imperative it is to invest in Mutual Funds. They can beat inflation, they can help you create a desired corpus, they can help you live an independent life after retirement, they can help you save for your children’s higher education, and whatnot. Also, we gave you a list of some mutual funds that can perform well in 2023 and are the best according to our study (do your own study and compare it with ours to choose the best mutual fund for your specific needs).

In today’s uncertain times, there is no better instrument than mutual fund to build a healthy corpus, and who better to guide you than WC Securities Pvt. Ltd., which has two decades of experience helping clients achieve their goals? Research it yourself too, take advantage of this detailed study, and make an informed decision. Still have questions? Connect with WC Securities Pvt. Ltd.

CA Mukesh Gupta
CA Mukesh Gupta
Mukesh Gupta is the founder and director of Wealthcare. He is Fellow chartered accountant, Certified Financial Planner and Certified Public Financial advisor. He is in financial services industry since 1994. He conducts free money management sessions for corporates and associations on topics related to Personal finance. His previous engagement was with Birla Sunlife group. He regularly writes on topics related to Personal finance and occasionally appear on electronic media.

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