Best Mutual Funds To Invest in 2023

A mutual fund is one of the popular investment options among individuals. There are thousands of mutual fund in India that an investor can invest in. But selecting the top 10 mutual funds or which mutual fund is the best is not easy. So, if you are looking for the best mutual fund, you need to look at your risk profile and the time horizon of your goals.

1. What are Best Mutual Funds?

There are various types of mutual funds. We can segregate mutual funds based on their underlying assets such as equity, debt or gold into different categories, such as equity mutual funds, debt mutual funds and hybrid funds. These funds have different risk profiles and investment objectives.

So, there is not one mutual fund that is best for everyone. The best mutual fund for you will be the mutual fund/s suitable for your investment objectives, risk tolerance, and investment horizon.

2. Top Performing Mutual Funds to Invest In India

Here’s the list of top 10 best mutual funds to invest now:

Best Performing Equity Mutual Funds

Fund Name	3-year Return (%)*	5-year Return (%)*
Quant Small Cap Fund Direct Plan-Growth	61.89%	26.69%
Quant Tax Plan Direct-Growth	43.83%	23.95%
Quant Infrastructure Fund Direct-Growth	51.46%	23.42%
Axis Small Cap Fund Direct-Growth	38.45%	22.39%
Quant Active Fund Direct-Growth	39.77%	21.86%
Quant Mid Cap Fund Direct-Growth	40.00%	21.36%
ICICI Prudential Technology Direct Plan-Growth	36.40%	20.82%
Aditya Birla Sun Life Digital India Fund Direct-Growth	33.73%	20.78%
Quant Flexi Cap Fund Direct-Growth	40.18%	20.56%
Nippon India Small Cap Fund Direct- Growth	48.31%	20.48%

Best Performing Debt Mutual Funds

Fund Name	3-year Return (%)*	5-year Return (%)*
DSP Government Securities Direct Plan-Growth	5.09%	9.06%
Bandhan Government Securities Investment Plan Direct-Growth	4.64%	9.06%
Bandhan Government Securities Fund Constant Maturity Direct-Growth	3.86%	9.03%
ICICI Prudential Constant Maturity Gilt Fund Direct-Growth	4.57%	8.99%
Aditya Birla Sun Life Medium Term Direct Plan-Growth	16.35%	8.96%
SBI Magnum Gilt Fund Direct-Growth	5.48%	8.95%
Edelweiss Government Securities Fund Direct-Growth	5.92%	8.78%
Nippon India Gilt Securities Fund Direct-Growth	4.71%	8.77%
Kotak Gilt Investment Direct-Growth	5.20%	8.74%
ICICI Prudential Gilt Fund Direct Plan-Growth	5.56%	8.69%

Best Performing Hybrid Mutual Funds

Fund Name	3-year Return (%)*	5-year Return (%)*
Quant Multi Asset Fund Direct-Growth	38.80%	21.97%
Quant Absolute Fund Direct-Growth	34.37%	20.07%
Kotak Multi Asset Allocator FoF – Dynamic Direct-Growth	23.90%	16.93%
ICICI Prudential Equity & Debt Fund Direct-Growth	28.08%	15.61%
ICICI Prudential Multi Asset Fund Direct-Growth	26.97%	15.38%
Baroda BNP Paribas Aggressive Hybrid Fund Direct – Growth	19.90%	14.23%
HDFC Balanced Advantage Fund Direct Plan-Growth	27.33%	14.12%
Kotak Equity Hybrid Fund Direct-Growth	24.99%	13.93%
Edelweiss Aggressive Hybrid Fund Direct – Growth	24.02%	13.83%
HDFC Retirement Savings Fund – Hybrid Equity Plan Direct-Growth	24.04%	13.75%

3. How to Select the Top Performing Mutual funds in India

We all want to know the best mutual funds to invest now. This section will highlight some of the factors that can help you identify the top 10 best mutual funds to invest in today.

Investment Objectives
You should undertake any investment only after a thorough examination of your life goals. Once you’ve determined your needs, you’ll need to compare them to the objectives of a mutual fund scheme to see if investing in them would help you to achieve your financial goals. Mutual funds, like individuals, have specific investment objectives, and it is up to the investors to determine whether their goals align with the mutual fund scheme in which they will invest.
Fund’s History
The fund’s history provides a record of the fund’s performance over time, including times of rising and corrections in markets. This shows the fund’s resilience during volatile market conditions.
Expense Ratio
The fund house charges fund management fees along with other charges for managing the assets of a fund, which is the expense ratio and is represented as a percentage of the fund’s asset. The mutual fund returns generated minus the expense ratio will be the net return earned by the investor.

4. Conclusion

Are you looking for good mutual funds to invest in? The top ten mutual funds or the best mutual fund to invest now will depend on your financial goals, risk tolerance and the investment duration.