Mutual funds have gained immense popularity among Indian investors as a means to grow wealth. With numerous mutual fund schemes available, each with distinct investment objectives and strategies, it can take time to identify the best options. This article will discuss some of the top-performing Best Mutual Funds To Invest In 2023, considering factors such as historical performance, risk management, fund management expertise, and investor satisfaction.
Parameters for Selecting the Best Mutual Funds To Invest In 2023:
The first parameter for finalising this List of Best Mutual Funds to invest in 2023 is,
The management analysis:
The factors we are considering are the longevity of the fund manager, where the longer the fund manager’s tenure is better for the fund.
Lesser changes in the fund management are again positive for the mutual fund.
The following parameter is the Portfolio Analysis:
We are looking for a funds portfolio with the least stock concentration risk, Sector concentration risk, and more diversification to hedge the risk in the investment portfolio.
Moreover, we are also looking for fair portfolio valuations and good-quality stocks in these Mutual Funds.
And after the portfolio analysis, the following parameter is,
The consistency in the returns:
In these Best Mutual Funds To Invest In 2023, based on trailing year Returns, Annual Returns, and Rolling Returns in the previous five years, we select the best with the most consistent performance.
We also keep in focus that these funds do better in a lump sum and SIP investments.
Next, we have also considered,
The risk-adjusted returns:
Fund’s capabilities to provide continuous risk-adjusted returns based on lower Standard Deviation, Beta And Maximum Drawdown of the past three years.
And higher Mean Returns, Sharpe ratio, and Alpha generation in the past three years.
And last but not least,
The expense ratios:
We have considered a lower expense ratio value in these Best Mutual Funds To Invest In 2023, which is better for mutual fund investors.
And by combining all these parameters, such as
- Management Analysis,
- Portfolio Analysis,
- Risk Analysis,
- Returns analysis and the
- Expense Ratio,
We arrived at the final two best mutual funds to invest in 2023 in each category of Indian mutual funds.
Index funds tracking error, tracking difference and expense ratio have been used to choose the best index funds.