Best Mutual Funds for 2023 in India

Best Mutual Funds for 2023 in India
Best Mutual Funds

What is a Mutual Fund?

Best mutual funds are a type of investment vehicle that pools resources from numerous investors to put these resources into an arrangement of stocks, bonds, or other assets. The mutual fund’s total holdings are referred to as its portfolio, and each mutual fund investor owns a proportional share of the portfolio based on the amount of money they have invested in the fund. Professional portfolio managers oversee mutual funds and make investment decisions on behalf of fund investors. 

Moreover, mutual funds are overall seen as a decently negligible investment decision, as they allow professional managers to achieve profits without purchasing individual stocks or securities.

Benefits of investing in Mutual Funds:

Putting money into mutual funds has numerous advantages. First and foremost, mutual funds offer diversification, which assists in distributing investment risk across a variety of securities. Moreover, mutual funds also offer proficient administration, permitting investors to profit from the experience of professional managers. best Mutual funds additionally give liquidity, permitting investors to trade their portions at the ongoing net asset value (NAV). Besides,best mutual funds offer openness, making it more straightforward for investors to enter the market with lower investment sums contrasted with direct investments.

Factors to consider when investing in Mutual Funds:

There are several important considerations to make when selecting the best mutual funds for your investment portfolio. These incorporate your financial objectives, risk appetite, cost proportions, fund manager’s expertise, tax implication, reserve execution, track performance records, and asset charges. By evaluating these aspects, you can select funds that are in line with your financial goals and make well-informed choices for your investment.



Here are some best Mutual Funds to invest in India in 2023:-

1. HDFC Mid-cap Opportunities Fund:

HDFC mid-cap fund was launched on June 25, 2007, and it is benchmarked against the NIFTY mid-cap 150 index. The main objective was to build a portfolio of mid-cap companies that have reasonable growth prospects, sound financial strength, sustainable business models, and an acceptable valuation that offers potential for capital appreciation.

2. TATA Dividend Yield Fund:

Tata Dividend Yield Fund – Regular Plan is an Open-ended Thematic-Dividend Yield Equity scheme that belongs to Tata Mutual Fund House. The fund was launched on May 20, 2021. The investment objective of the fund is to provide capital appreciation or dividend distribution by investing predominantly in a well-diversified portfolio of equity and equity-related instruments of dividend-yielding companies and It is benchmarked against the NIFTY 500 Total Return Index.

3. UTI Flexi-cap Fund:

It is a mutual fund that invests in equity and securities that are related to equity and can invest in any Indian economic sector and has a flexible investment strategy. The UTI Flexi Cap Fund is an equity scheme with no expiration date and can invest in stocks, bonds, money market instruments, and other assets. While the fund focuses primarily on equity investments, it is also exposed to fixed-income securities and money market instruments.

4. AXIS Mid-cap Fund:

It is an open-ended mid-cap equity fund that focuses on long-term capital appreciation and invests in equity and its related instruments of mid-cap companies. It is benchmarked to the S&P BSE 150 Mid-Cap Total Return Index. Since 2011, the fund has been managed by the Axis Mutual Fund.

5. KOTAK Emerging Equity Fund:

The equity mutual fund scheme known as Kotak Emerging Equity Fund Direct-Growth was launched by Kotak Mahindra Mutual Fund. This mutual fund primarily invests in mid-cap companies, the plan aims to generate long-term capital appreciation from the portfolio of equity and equity-related securities. The fund was launched on January 1, 2013, and since its inception, its average annual returns have been 6.26 percent.

6. ICICI Prudential Nifty PSU Bank ETF:

It is an exchange-traded fund that aims to provide returns similar to those provided by the nifty PSU bank index, subject to market error. This index represents 12 PSU banks based on floating market capitalization. Also, this index is re-balanced on a semi-annual basis i.e. March and September.

7. BANDHAN Tax advantage ( ELSS ) Fund:

Bandhan tax advantage (ELSS) funds were incepted on 26 December 2008 and are benchmarked against S&P BSE 500 TRI (w.e.f. 1st Dec 2021 ). An Equity Linked Savings Scheme (ELSS), with a 3-year lock-in, enables investors to avail of a deduction on total income, as permitted under the Income Tax Act, of 1961.

8. SBI Equity Hybrid Fund:

It is a hybrid mutual fund scheme that SBI Mutual Fund has introduced. By investing in a combination of debt and equity, the plan aims to provide investors with long-term capital appreciation and the liquidity of an open-ended plan.

9. PARAG PARIKH Long Term Equity Asset:

Parag Parikh Long-term Equity Asset is an Unconditional Flexi Cap Value plot that puts resources into stocks and value-related instruments. It puts resources into organizations with a drawn-out point of view and has been under the asset house PPFAS Common Asset since its commencement in 2013. It is also benchmarked against the NIFTY 500 Total Return Index.

10. MIRAE Asset Hybrid Equity Fund:

It is a hybrid mutual fund scheme offered by Mirae Asset Mutual Fund. The Plan focuses to create capital appreciation and current income from a consolidated arrangement of value and value-related instruments, debt, and money market instruments.

Best Performing Equity Mutual Funds 

Best Performing Equity Mutual Funds 

Mutual funds have always been the go-to investment destination for fixed-income people. There are a plethora of mutual funds with different holdings. However, the majority of funds that attract investors with rewarding ROI are equity mutual funds. There are a number of equity mutual funds that have good holdings and are managed by experts, here are some funds for you to ease your investment journey: 

Fund Name1 Year ReturnRatingFund Size (in Cr)
Quant Infrastructure Fund 83.2*%5⭐Rs 2,498

Motilal Oswal Mid Cap Fund 
64.8*%5⭐Rs 8,986
Kotak Small Cap Fund42.6*%5⭐Rs 13,882
Quant MidCap Fund71.3*%5⭐Rs 5,873
SBI Contra Fund50.2*%5⭐Rs 26,776
Quant ELSS Tax Saving Fund63.1*%5⭐Rs 8,341
Tata Small Cap Fund48.1*%5⭐Rs 6,236

Best Performing Debt Mutual Funds 

Best Performing Debt Mutual Funds 

Debt funds invest in fixed-income bonds and securities issued by governments and corporations. These fixed-income securities may include corporate bonds, treasury bills, government securities, money market instruments, and so on.

Debt funds are the lowest-risk mutual funds, particularly when compared to stocks. These funds can provide an investor with the opportunity to earn higher returns than standard savings products. 

Fund Name1 Year ReturnRatingFund Size (in CR)
Aditya Birla Sun Life Medium Term Fund7.3*%5⭐Rs 1,891

Nippon India Strategic Debt Fund
7.2*%5⭐Rs 1,863
Sundaram Low Duration Fund7.3*%5⭐Rs 392
UTI Short Duration Fund7.7*%5⭐Rs 2,689
Aditya Birla Sunlife Dynamic Bond Retail Fund6.9*%5⭐Rs 1,732
Nippon India Ultra Short Duration Fund7.7*%5⭐Rs 4,332

Best Performing Hybrid Mutual Funds

Best Performing Hybrid Mutual Funds

Hybrid mutual funds invest in a variety of securities, including equities, debt, and gold instruments. The combination of investments is determined by the fund’s investment goal. Additionally, the returns and risk strategies will be determined by the type of allocation for each asset class.

It might be a fund that is ideal for all types of investors, offering a wide range of combinations as well as various types of benefits and hazards. 

Fund Name1 Year ReturnRatingFund Size (in CR)
Baroda BNP Paribas Balanced Advantage Fund29.1*%3⭐Rs 3,783

ICICI Prudential Equity and Debt Fund
41.8*%5⭐Rs 33,502
Quant Multi Asset Fund50.1*%5⭐Rs 1,829
Edelweiss Aggressive Hybrid Fund36.1*%5⭐Rs 1,440
SBI Conservative Hybrid Fund14.9*%5⭐Rs 9,642
HDFC Balanced Advantage Fund40.1*%5⭐Rs 79,875

Tax Calculation on Mutual Funds in India 

Tax Calculation on Mutual Funds in India 

The profits gained over the capital invested in mutual funds are called capital gains, these capital gains are subjected to tax after a certain value. Tax rules differ based on different funds. The policies vary for equity, debt, hybrid, and tax-saving funds. 

Further, the dividends earned by investors from any mutual funds are subjected to income tax in the usual way. The dividend is counted under the income and subjected to an income tax slab. Previously dividends on mutual funds were tax-free, but from the union budget 2020, they are taxable for all. 

The gains on mutual funds are categorized into 2 parts: 

  1. Short-term Gains: Gains within 12 months
  2. Long-term gains: gains exceeding 12 months period 
Fund Type Short-Term Capital Gains TAX (STGC)Long-Term Capital Gains Tax (LTGC)Holding period
Equity funds Arbitrage fundsOther funds15%10% (without indexation)12 months
Debt Mutual Funds Floater FundsSlab RateSlab Rate36 months
Conservative Hybrid FundsSlab rate20% with indexation36 months
Other Funds (invest more than35% but less than 65% in equity)Slab rate20% with indexation36 months
Balanced Hybrid Funds(Equity: 40%-60% Debt: 60%-40%) Slab rate20% with indexation36 months
Aggressive Hybrid Funds(Equity: 65%-80% Debt: 35%-20%) 15%10% without indexation12 months


Putting resources into common assets can be a reasonable system to accomplish long-haul monetary objectives. You can choose the best mutual funds to invest in, in 2023. by taking your investment goals, risk tolerance, and other essential factors into consideration. Whether you favor capital appreciation, tax saving, or regular income there are choices available to suit your inclinations. Make sure that your investment portfolio stays in line with your financial objectives by reviewing and reevaluating it regularly.


What is a mutual fund?

A mutual fund is a type of investment instrument that pools funds from several investors and invests them in stocks, bonds, or other securities. Mutual funds, which are managed by professional fund managers, offer diversified portfolios and are subject to government regulation to ensure transparency and investor protection. 

How do I determine what the best mutual fund is for me?

Determine your investment objectives, risk tolerance, and timeframe. Investigate several mutual funds based on characteristics such as investment strategy, performance history, fees, and risk level. Choose funds that are consistent with your financial aims and interests.

What are the different types of mutual funds available?

Mutual funds are classified into several types, including equity funds, bond funds, money market funds, index funds, sector funds, and balanced funds. Each type has a unique investment objective, asset allocation, and risk profile that caters to varied investor requirements. 

What factors should I consider when choosing a mutual fund?

Consider your investing goals, risk tolerance, performance history, fund expenses, management expertise, investment strategy, fund size, and past results. Before making a decision, consider how well the fund aligns with your financial objectives, time horizon, and risk tolerance.

How important are a fund manager’s history and track record?

Fund management history and track record reveal information about their investment approach, skill, and ability to generate returns. While previous performance is no guarantee of future results, a manager’s experience and consistency in providing returns might influence fund selection selections.

What role do fees and expenses play in mutual fund selection?

Fees and expenses have a direct impact on long-term investment returns. When analyzing mutual funds, take into account cost ratios, sales loads, and other fees. Lower-cost funds may improve long-term returns, making fee transparency and cost-effectiveness critical considerations in fund selection.




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