Top 10 Best Mutual Funds to invest in 2023

It was not that exciting year for stock market investors in 2022. While in 2021, Nifty 50 generated 24% returns, in 2023, Nifty 50 could generate only 3%. While mutual fund investors need not worry about such short term fluctuations, they should always invest based on their financial goals, risk appetite and tenure of investment. This way, they can expect maximum returns. If you are looking for some of the Best Mutual funds next 10 years, this article is for you. Which are the Best Mutual Funds to invest in 2023 in India? Which are the Top 10 Mutual Funds that are consistent performers in medium to long term?

What are SIP Mutual Funds?

Skip this if you are already familiar with mutual funds.

Mutual funds pool money from investors and invest in equity or debt or assets depending on the investment objective indicated in the scheme information document (SID).

Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds with equal amounts at regular intervals. This could be weekly SIP, fortnightly SIP, monthly SIP, quarterly SIP or yearly SIP. Among these monthly SIP is popular. Now don’t worry too much about thinking which date is better in SIP.

Top 10 Best SIP Mutual Funds to invest in 2023

How to filter Top Mutual Funds for 2023?

There are over 5,000 mutual fund schemes in India. Investors should pick  mutual fund schemes based on some of the key parameters indicated below:

1) Based on financial goals

2) How long you want to invest – short term, medium term or long term

3) Based on risk appetite

4) How well the fund performance in the past based on various market cycles?

5) Fund with low expense ratio

6) Index fund that has low tracking error

What changed from our last year recommendations?

There are 2 mutual funds i.e. Axis Blue Chip Fund and Axis Mid Cap Fund, which we have replaced with other funds now. If you have already invested in these funds, you can continue investing in them.

Top 10 Best Mutual Funds to invest in 2023

Here is the list of Best mutual funds for SIP to invest in 2023.

#1 – UTI Nifty Index Fund

#2 – UTI Nifty Next 50 Index Fund

#3 – Mirae Asset Large Cap Fund

#4 – Canara Robeco Bluechip Equity Fund

#5 – Quant Mid Cap Fund

#6 – SBI Small Cap Fund

#7 – Parag Parikh Flexi Cap fund

#8 – UTI Flexi Cap fund

#9 – Canara Robeco Equity Hybrid fund

#10 – Motilal Oswal Nasdaq 100 FoF

Top 10 Mutual Funds for 2023 – Detailed View

Let us get into more info about these funds.

#1 – UTI Nifty Index Fund

Investment objective:  The principal investment objective of the scheme is to invest in stocks of companies comprising Nifty 50 Index and endeavor to achieve a return equivalent to Nifty 50 Index by “passive” investment.

Fund Performance and Risk Statistics

Performance & Risk Metrics UTI Nifty 50 Index Fund
Value Research Rating 3 Star
3 Years – SIP Returns 16.8%
5 Years – SIP Returns 14.6%
10 Years – SIP Returns 13.1%
10 Years – Annualised Returns 12.5%
AUM –  Crores 9,503
Expense Ratio 0.20%
Beta 1.01
Alpha -0.93

Why to invest?

This fund replicates Nifty50 index stocks and would provide returns in line with the index. Nifty50 index has provided stable returns as stock markets would be always in positive trend in medium to long term. This index has delivered 12.5% returns in the last 10 years and 12.1% returns in the last 5 years.

If you are moderate to high risk investors and willing to create wealth in long term without having to worry about fund manager’s performance, this is one of the Best Mutual funds for next 10 years investment.

#2 – UTI Nifty Next 50 Index Fund

Investment objective:  The investment objective of the scheme is to invest in stocks in the Nifty Next 50 index.

Fund Performance and Risk Statistics

Performance & Risk Metrics UTI Nifty Next 50 Index Fund
Value Research Rating 3 Star
3 Years – SIP Returns 15%
5 Years – SIP Returns
10 Years – SIP Returns
10 Years – Annualised Returns
AUM –  Crores 2,112
Expense Ratio 0.33%
Beta 0.92
Alpha -0.28

Why to invest?

This fund replicates Nifty Next 50 index stocks. This index has been little volatile in the last couple of years owing to many high valuation and pathetic performing stocks that are part of the index including PayTm, Nykaa, Zomato etc.This index has delivered 15.3% returns in the last 10 years and 7.5% returns in the last 5 years.

If you are a high risk investor and willing to create wealth in long term without having to worry about fund manager’s performance, you can invest in this index fund.

#3 – Mirae Asset Large Cap Fund

Investment objective:  This is an open ended equity scheme predominantly investing across large cap stocks.

Fund Performance and Risk Statistics

Performance & Risk Metrics Mirae Asset Large Cap Fund
Value Research Rating 4 Star
3 Years – SIP Returns 16%
5 Years – SIP Returns 15%
10 Years – SIP Returns 16%
10 Years – Annualised Returns 16%
AUM –  Crores 35,406
Expense Ratio 0.50%
Beta 0.96
Alpha -0.51

Why to invest?

This fund invests majorly in large cap stocks that can provide stable returns in medium to long term. This fund has consistently delivered 15% to 16% SIP returns in the last 3 years, 5 years and 10 years time frame.

If you are moderate to high risk investor and willing to create wealth in long term, this is one of the Best Large Cap Mutual Funds to invest in 2023.

#4 – Canara Robeco Bluechip Equity Fund

Investment objective: The Investment Objective of the fund is to provide capital appreciation by predominantly investing in companies having a large market capitalization.

Fund Performance and Risk Statistics

Performance & Risk Metrics Canara Robeco Bluechip Equity Fund
Value Research Rating 5 Star
3 Years – SIP Returns 15%
5 Years – SIP Returns 16%
10 Years – SIP Returns 15%
10 Years – Annualised Returns 14%
AUM –  Crores 8,832
Expense Ratio 0.42%
Beta 0.86
Alpha 2.37

Why to invest?

This fund invests majorly in large cap stocks that can provide stable returns. This fund has consistently delivered 14% to 17% returns in the last 3 to 10 years time frame.

If you are moderate to high risk investor and willing to create wealth in long term, this is one of the Best Mutual Funds in India from the large cap segment.

#5 – Quant Mid Cap Fund

Investment objective: The primary investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio of Mid Cap companies.

Fund Performance and Risk Statistics

Performance & Risk Metrics Quant Mid Cap Fund
Value Research Rating 5 Star
3 Years – SIP Returns 38%
5 Years – SIP Returns 30%
10 Years – SIP Returns
10 Years – Annualised Returns 17%
AUM –  Crores 1,272
Expense Ratio 0.63%
Beta 0.82
Alpha 14.00

Why to invest?

This fund invests majorly in mid cap stocks that can provide high returns. However, investing in mid cap companies comes with risk. This fund generated 21% to 39% returns in the last 3 to 5 years time frame.

If you are a high risk investor and willing to create wealth in long term, this is one of the Best Midcap Funds to invest in 2023.

#6 – SBI Small Cap Fund

Investment objective: SBI Small Cap Fund aims to provide investors with opportunities for long-term growth in capital by investing predominantly in a well-diversified basket of equity stocks of small cap companies.

Performance & Risk Metrics SBI Small Cap Fund
Value Research Rating 4 Star
3 Years – SIP Returns 28%
5 Years – SIP Returns 24%
10 Years – SIP Returns 24%
10 Years – Annualised Returns 25%
AUM –  Crores 15,335
Expense Ratio 0.72%
Beta 0.77
Alpha 6.88

Fund Performance and Risk Statistics

Why to invest?

This fund invests majorly in small cap stocks that can provide very high returns. However, investing in small cap companies is at high risk. While this fund generated 30% returns in the last 3 years, which could be abnormal, its returns of 13% to 25% in the last 5-10 years could be a reasonable expectation of such funds considering the risk.

If you are a high risk investor and willing to create wealth in long term, this is one of the Best Small Cap Mutual Funds to invest in 2023 in India.

#7 – Parag Parikh Flexi Cap fund

Investment objective: To seek to generate long term capital growth from an actively managed portfolio of equity and equity related securities.

Fund Performance and Risk Statistics

Performance & Risk Metrics Parag Parikh Flexi Cap fund
Value Research Rating 5 Star
3 Years – SIP Returns 17%
5 Years – SIP Returns 18%
10 Years – SIP Returns
10 Years – Annualised Returns
AUM –  Crores 28,546
Expense Ratio 0.76%
Beta 0.78
Alpha 6.68

Why to invest?

This fund invests in stocks across market cap and in India and overseas markets. This fund generated 25% annualised returns since inception and has been a consistent performer.

If you are a high risk investor and willing to create wealth in medium to long term, this is one of the Best Flexi Cap Mutual Funds to invest in 2023.

#8 – UTI Flexi Cap fund

Investment objective: The primary objective of the scheme is to generate long term capital appreciation by investing predominantly in equity and equity related securities of companies across the market capitalization spectrum.

Fund Performance and Risk Statistics

Performance & Risk Metrics UTI Flexi Cap fund
Value Research Rating 4 Star
3 Years – SIP Returns 11%
5 Years – SIP Returns 13%
10 Years – SIP Returns 14%
10 Years – Annualised Returns 14%
AUM –  Crores 26,102
Expense Ratio 0.91%
Beta 0.96
Alpha -0.92

Why to invest?

This fund invests in stocks across market cap. This fund generated 14% annualised returns since inception and has been a consistent performer generating over 12% returns in 3 to 10 years time frame.

If you are a high risk investor and willing to create wealth in medium to long term, this is one of the Best Flexicap Mutual Funds for 2023.

#9 – Canara Robeco Equity Hybrid fund

Investment objective: Fund aims to seek to generate long term capital appreciation and/or income from a portfolio constituted of equity and equity related securities as well as fixed income securities (debt and money market securities).

Fund Performance and Risk Statistics

Performance & Risk Metrics Canara Robeco Equity Hybrid fund
Value Research Rating 4 Star
3 Years – SIP Returns 14%
5 Years – SIP Returns 14%
10 Years – SIP Returns 14%
10 Years – Annualised Returns 14%
AUM –  Crores 8,593
Expense Ratio 0.60%
Beta 0.77
Alpha 3.35

Why to invest?

This fund invests in equity + fixed income options, hence is called as hybrid mutual fund. This fund generated 14% annualised returns since inception and has been a consistent performer generating over 12% returns in 3 to 10 years time frame.

If you are moderate risk investor and willing to create wealth in medium or long term, this is one of the Best Hybrid Mutual Funds to invest in 2023.

#10 – Motilal Oswal Nasdaq 100 FoF

Investment objective: The investment objective of the Scheme is to seek returns by investing in units of Motilal Oswal Nasdaq 100 ETF.

Fund Performance and Risk Statistics

This fund was launched few years back which invests in Motilal Oswal Nasdaq100 ETF. Performance of Motilal Oswal NASDAQ 100 ETF is provided below for better clarity.

Performance & Risk Metrics Motilal Oswal Nasdaq 100 ETF
Value Research Rating
3 Years – SIP Returns -2%
5 Years – SIP Returns 11%
10 Years – SIP Returns 16%
10 Years – Annualised Returns 19%
AUM –  Crores 4,958
Expense Ratio 0.58%
Beta
Alpha

Why to invest?

This fund invests in an ETF that invests in the US Nasdaq 100 index. This index generated 19% annualised returns in last 10 years and 16% annualised returns in last 5 years. However, this index has underperformed in the last 1 year and generated negative 25% returns.

If you are a high risk investor and willing to create wealth in long term, this is one of the Best Mutual Funds in India from Global Funds category. Avoid this fund if you want to invest for short to medium term.

Top 10 Mutual Funds for 2023 – Annualized Returns

Category Mutual Fund Scheme 3yr 5yr 10yr
Index / Largecap UTI Nifty 50 Index Fund 15.0% 12.1% 12.5%
UTI Nifty Next 50 Index Fund 15.0%
Mirae Asset Large Cap Fund 15.0% 12.0% 16.0%
Canara Robeco Bluechip Equity Fund 17.0% 14.0% 14.0%
Mid-cap
Small-cap
Quant Mid Cap Fund 39.0% 21.0%
SBI Small Cap Fund 30.0% 13.0% 25.0%
Flexicap Parag Parikh Flexi Cap fund 22.0% 16.0%
UTI Flexi Cap fund 16.0% 12.0% 14.0%
Hybrid Canara Robeco Equity Hybrid fund 16.0% 12.0% 14.0%
Global Motilal Oswal Nasdaq 100 ETF 12.0% 16.0% 19.2%

FAQs on Mutual Funds

Which mutual fund is best for 2023?

Investors should invest in mutual funds based on their financial goals, risk appetite and how long they can invest. There is no ready made list of mutual funds which are best for 2023 for everyone.

Which mutual fund is best for 3 years?

Since 3 years is short term, one can invest in medium term mutual funds like ICICI Pru medium term fund or SBI Magnum medium duration fund .

Which mutual funds are best for next 5 years?

If you are looking for mutual funds that are best for next 5 years investment, you can go for hybrid or balanced mutual funds like ICICI Pru Equity and Debt Fund or Canara Robecco Hybrid equity fund.

Which are the Top 5 mutual funds in India?

If you are looking only for Top 5 Mutual Funds in India for investment, you can consider one fund each of the above listed category.

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Suresh KP

7 comments

  • Diana

    Sir I am just a beginner and I am planning to start investment in the market. Will you please give some suggestions on what to do n what not to do and how should I start my investment and in which stock is best for a biginner like me.

  • RAJ PAL SINGH

    please tell me should I stay with SBI Magnum mid cap fund or not ?

  • Saurabh

    Hello Sir

    I’ve been investing 19,500 per month through following SIPs in respective MFs. They have been selected from your recommendations throughout 2022.

    (1) PARAG PARIKH FLEXI CAP FUND – GROWTH (5000 per month)

    (2) PGIM INDIA MIDCAP OPPORTUNITIES FUND – REGULAR – GROWTH (4500 per month)

    (3) QUANT ABSOLUTE FUND-GROWTH (3500 per month)

    (4) UTI NIFTY NEXT 50 INDEX FUND REGULAR GROWTH PLAN (2000 per month)

    (5) SBI SMALL CAP FUND REGULAR GROWTH (2500 per month)

    (6) UTI-NIFTY INDEX FUND – GROWTH PLAN (2000 per month)

    Considering the present market scenario and your recommendations in this article, Do you suggest any changes in my SIP portfolio ? And addition or deletion ?

    I can see “Motilal Oswal Nasdaq 100 ETF” as having a good start as one more MF SIP as US Markets are down in 2022 and I can invest upto 5000 more per month.

    Please suggest sir. Your knowledge and recommendations mean a lot to me.
    Thank you very much.

    • Your portfolio looks good. If you would like to get international exposure, you can invest in NASDAQ 100 Index or S&P index fund from any of the AMCs that has low expense ratio.

  • Arpan Thukral

    Hello Suresh sir,

    My portfolio seems a bit cluttered and I want to de-clutter the same for future:
    1. Canara Robeco Hybrid Equity Fund
    2. HDFC Hybrid Equity Fund
    3. HDFC Index Fund – Nifty 50
    4. ICICI Prudential Bluechip fund
    5. Mirae Asset Large Cap Fund
    6. SBI Magnum Equity Fund
    7. Tata Digital India Fund
    8. UTI Flexi Cap Fund
    9. UTI Long term equity fund (Tax saving)
    10. UTI mid Cap Fund
    11. ICICI Pru FMCG Fund
    12. HDFC NIFTY Next50 Index Fund

    All the above investments are Direct – Growth plans. I am 34 years old and my investment objective is wealth maximization.

    Could you please guide me where I can switch/merge/stop/continue in the above funds?

    • Good portfolio of funds. If possible review and exit (after tax implications) – SBI Magnum Equity ESG fund as you do not need such funds for long term wealth creation. There are 2 funds FMCG and Digital funds which are riskier, but you can continue if you are high risk taker. All others you can continue

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