This is an in-depth analysis of the best SEBI registered mutual funds to invest in 2023 in India. By considering key factors such as time, risk-taking capacity, expense ratio, exit load, redemption of tax, portfolio diversification, and portfolio management, investors can make informed decisions to preserve and maximize their wealth.
Investing in mutual funds is a popular choice for individuals looking to invest and grow their wealth over time. In India, investing in mutual funds is one of the best options to save tax – few funds like ELSS, etc. provide options to save tax in India. With the help of professional money managers, mutual funds offer a diversified investment portfolio and the potential for attractive returns.
In this article, we will explore the best SEBI registered mutual funds to invest in 2023 in India, taking into consideration various factors that can influence investment decisions. We will also share the list of mutual funds that are registered with SEBI. Consider a few factors that affect mutual fund investment as below.
Table of Contents
How to choose a Mutual funds to invest in?
Identifying the best mutual funds to invest in that suits your requirements along with safety is a cumbersome job. We have identified few criteria below to think before you finalize any fund to invest in. Below are few criteria that may help you in identifying the top performing mutual funds that suits your requirements as well.
Mutual Funds Investment for Long Term
The most important factor is to decide the time frame of the investment in case you are planning to invest in mutual funds. The time frame is the period in which the money has to be invested. Different mutual funds are suitable for different investment horizons. Some mutual funds are ideal for long-term investments, while others can be considered for quick returns. It is important to align your investment goals with the time frame of the mutual fund to ensure optimal returns.
Risk-taking Capacity of the Investor
For an individual investor, one of the key factors to consider is risk risk-taking capacity. Mutual funds come with varying levels of risk, depending on the companies they invest in and their performance expectations. There are different types of mutual funds but broadly categorized into equity-linked, debt-linked, and balanced funds.
For equity-linked mutual funds, some mutual funds invest in well-established large-cap companies with a track record of success, while others invest in mid or small-cap companies that may perform well in the future but carry a higher level of risk at the time of investment. Hence, it is crucial to evaluate your risk appetite and choose a mutual fund that aligns with your risk tolerance. We will not go deep into this analysis. This may be a part of a separate article. We will focus on the best SEBI Registered Mutual Funds to invest in 2023 in India in this article.
Mind for the Expense Ratio
The expense ratio of a mutual fund is an important feature to consider before investing in any mutual fund. The expense ratio refers to the fee charged by the mutual fund company to maintain and operate the fund. A lower expense ratio means that a smaller portion of your investment returns will be deducted as fees, leaving you with higher gains. It is advisable to opt for mutual funds with lower expense ratios to maximize your returns.
Look at the Exit Load
Similar to the expense ratio, the exit load is another cost associated with mutual funds. Some funds charge a fee if you exit the fund prematurely, reducing your overall gains. It is essential to carefully review the exit load of a mutual fund before making investing in the mutual fund. Opting for funds with lower or no exit load can help you preserve more of your investment returns.
Redemption of Tax under 80C
Redemption under Section 80C of the Income Tax Act is an important factor to consider for equity mutual funds. Under this provision, investors can avail of a rebate of up to INR 1.5 lakh annually based on their tax slabs. It is advisable to choose equity mutual funds that offer tax benefits to optimize your tax planning and investment strategy.
Do you want Portfolio Diversification?
Portfolio diversification is a crucial aspect of any investment strategy. By portfolio diversification, you can mitigate the risk associated with individual stocks or sectors. Mutual funds help in diversifying your portfolio by investing in different companies including large-cap, mid-cap, and small-cap companies. If some stocks in your mutual fund portfolio under perform, others that are performing well can balance the overall returns. It is important to choose mutual funds that offer a diversified portfolio to minimize risk and maximize returns.
Professional Portfolio Management
If you are a professional investor, you may manage your portfolio, but if you are just an investor or a beginner it is important to invest in mutual funds. Your investment will be managed by an experienced portfolio manager. The portfolio manager conducts research, makes investment decisions, and manages the overall portfolio. Again, it is essential to evaluate the experience and performance of the portfolio manager before investing in a mutual fund. Good management of the portfolio is crucial to the success of a mutual fund.
Best SEBI Registered Mutual Funds to Invest in 2023
Coming to the point where we have discussed the key factors to consider before investing in mutual funds, we now can explore some of the best SEBI registered mutual funds to invest in 2023 in India. These funds have been selected based on their historical performance, consistency, and suitability for different investment objectives. One of the most important criteria is its average return, we considered 3 years average direct returns as a benchmark to get the final list.
My focus is on large-cap funds that offer good returns in the long term with the safety of your investment. Higher returns come with higher risk. However, if you invest in large-cap funds the risk is lower and there will be a decent return over a long period along with tax benefits. Retail investors who want a passive income or invest for their retirement can choose the best large-cap funds with good 3 years’ average returns. Below are a few funds that returned over 20% during the last 3 years.
In my next article, I will discuss the SIP investment and will do an in-depth analysis of debt funds, equity funds, and balanced funds. What are the best funds for SIP and how to maximize your profits?. Here I am sharing 5 top performing mutual funds in India. We considered these SEBI Registered Mutual Funds based on 3 years average direct returns. As per my understanding and 3 years average direct returns Nippon India Large Cap Fund is one of the best in the market currently.
A Few Top Performing Mutual Funds
- Nippon India Large Cap Fund
- Category: Equity – Large Cap Fund
- Daily AUM (Cr.): 14,769.25
- Returns Since Inception: 15.64%
- 3 Years Average Direct Returns: 31.42%
- Performance: Very Good
- HDFC Top 100 Fund
- Category: Equity – Large Cap Fund
- Daily AUM (Cr.): 24,819.04
- Returns Since Inception: 13.65%
- 3 Years Average Direct Returns: 27.49%
- Performance: Very Good
- SBI Bluechip Fund
- Category: Equity – Large Cap Fund
- Daily AUM (Cr.): 38,338.04
- Returns Since Inception: 11.83%
- 3 Years Average Direct Returns: 26.24%
- Performance: Very Good
- ICICI Prudential Bluechip Fund
- Category: Equity – Large Cap Fund
- Daily AUM (Cr.): 38,734.11
- Returns Since Inception: 15.04%
- 3 Years Average Direct Returns: 26.02%
- Performance: Very Good
- Tata Large Cap Fund
- Category: Equity – Large Cap Fund
- AUM (Cr.): 1557.13
- Returns Since Inception: 13.48%
- 3 Years Average Direct Returns: 25.61%
- Performance: Very Good
Complete List of SEBI Registered Mutual Funds
There are 47 SEBI Registered mutual funds in India as on Jul 12, 2023. Here is the complete list to choose from. Only invest me SEBI registered mutual funds or advisors to keep your investment safe and maximize returns.
SEBI Registered Mutual Funds as on Aug 21, 2024
| Name | Registration No. | City |
|---|---|---|
| ADITYA BIRLA SUN LIFE MF | MF/020/94/8 | MUMBAI |
| AXIS MF | MF/061/09/02 | MUMBAI |
| Baroda BNP Paribas Mutual Fund | MF/018/94/2 | MUMBAI |
| BOI AXA MF | MF/056/08/01 | MUMBAI |
| CANARA ROBECO MF | MF/004/93/4 | MUMBAI |
| CRB MF | MF/008/93/5 | MUMBAI |
| PGIM INDIA MUTUAL FUND | MF/065/10/02 | MUMBAI |
| DSP MF | MF/036/97/7 | MUMBAI |
| EDELWEISS MF | MF/057/08/02 | MUMBAI |
| NAVI MUTUAL FUND | MF/062/09/03 | BANGALORE |
| FRANKLIN TEMPLETON MF | MF/026/96/8 | MUMBAI |
| HDFC MF | MF/044/00/6 | MUMBAI |
| ICICI PRUDENTIAL MF | MF/003/93/6 | DELHI |
| IDBI MUTUAL FUND | MF/064/10/01 | MUMBAI |
| IIFCL MF (IDF) | MF/071/13/01 | NEW DELHI |
| 360 ONE Mutual Fund | MF/067/11/02 | |
| IL&FS IDF MF | MF/072/13/02 | MUMBAI |
| Groww Mutual Fund | MF/068/11/03 | MUMBAI |
| Invesco Mutual Fund | MF/052/06/01 | MUMBAI |
| ITI Mutual Fund | MF/073/18/01 | MUMBAI |
| JM FINANCIAL MF | MF/015/94/8 | MUMBAI |
| Kotak Mutual Fund | MF/038/98/1 | MUMBAI |
| LIC MF | MF/012/94/5 | MUMBAI |
| MIRAE ASSET MF | MF/055/07/03 | MUMBAI |
| MOTILAL OSWAL MF | MF/063/09/04 | MUMBAI |
| PPFAS MF | MF/069/12/01 | MUMBAI |
| Quant Mutual Fund | MF/028/96/4 | DELHI |
| QUANTUM MF | MF/051/05/02 | MUMBAI |
| Nippon India Mutual Fund | MF/022/95/1 | MUMBAI |
| SBI MF | MF/009/93/3 | MUMBAI |
| SHRIRAM MF | MF/017/94/4 | MUMBAI |
| SUNDARAM MF | MF/034/97/2 | CHENNAI |
| TAURUS MF | MF/002/93/ | MUMBAI |
| Union Mutual Fund | MF/066/11/01 | MUMBAI |
| UTI MF | MF/048/03/01 | MUMBAI |
| WhiteOak Capital Mutual Fund | MF/074/18/02 | MUMBAI |
| TRUST MUTUAL FUND | MF/075/19/01 | MUMBAI |
| HSBC MF | MF/046/02/5 | MUMBAI |
| TATA MF | MF/023/95/9 | MUMBAI |
| Mahindra Manulife Mutual Fund | MF/069/16/01 | MUMBAI |
| N J Mutual Fund | MF/076/21/02 | MUMBAI |
| SAMCO MUTUAL FUND | MF/077/21/03 | MUMBAI |
| Bajaj Finserv Limited | MF/078/23/04 | PUNE |
| HELIOS CAPITAL MANAGEMENT PTE. LTD. | MF/079/23/05 | MUMBAI |
| ZERODHA BROKING LIMITED | MF/080/23/06 | BANGALORE |
| Old Bridge Asset Management Private Limited | MF/081/23/07 | MUMBAI |
| Bandhan Mutual Fund | MF/042/00/3 | MUMBAI |
Final Words
In conclusion, investing in mutual funds can be a lucrative investment strategy when approached. However, one needs to be choosy or evaluate the funds carefully considering the above factors. By evaluating the time frame, risk-taking capacity, expense ratio, exit load, redemption of tax, portfolio diversification, and portfolio management, investors can make informed decisions and maximize their investment returns. The list of best SEBI registered mutual funds to invest in 2023 provides a starting point for investors to explore potential investment opportunities. However, it is important to conduct thorough research and consult with financial advisors before making any investment decisions.
All the Best for your Investment Journey. Happy investing!
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