Investing in mutual funds is a smart way to grow your wealth and potentially beat the rising costs of college education.
With a variety of top mutual funds available, it’s important to choose the ones that align with your financial goals and risk tolerance. In this guide, we’ll explore the top mutual funds for different investment needs, from long-term growth and SIP to high returns and dividends.
We’ll also answer common questions about the safety of mutual funds and how they compare to fixed deposits (FD).
Top Mutual Funds to Invest
Here are some of the best mutual funds to invest in 2023 for your kid’s future.
| Top Mutual Funds to invest in 2023 | ||
| Sr. No. | Category | Scheme Name |
| 1 | Large Cap | Canara Robeco Bluechip Equity Fund |
| 2 | Mid Cap | Axis Mid Cap Fund |
| 3 | Small Cap | SBI Small Cap Fund |
| 4 | Small Cap | Tata Small Cap Fund |
| 5 | Large and Mid-Cap | Kotak Equity Opportunities Fund |
| 6 | Flexi Cap | HDFC Focused 30 Fund |
| 7 | Multi Cap | HDFC Multi Cap Fund |
| 8 | Aggressive Hybrid | SBI Equity Hybrid Fund |
| 9 | Conservative Hybrid | ICICI Prudential Regular Savings Fund |
| 10 | Dynamic Asset Allocation | HDFC Balanced Advantage Fund |
Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Top Mutual Funds for SIP (Systematic Investment Plan)
These are some of the top mutual funds for SIP in 2023 to consider for your kid’s future college fund:
1. HDFC Equity Fund
Category: Equity Large Cap
SIP Returns: This fund has a strong track record of delivering consistent returns over the long term.
2. Mirae Asset Emerging Bluechip Fund
Category: Equity Mid Cap
SIP Returns: Known for its potential to generate high returns over time, ideal for those with a longer investment horizon.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.
| Top Mutual Funds High Returns | ||
| Sr. No. | Category | Scheme Name |
| 1 | Small Cap | Nippon India Small Cap Fund |
| 2 | Small Cap | Axis Small Cap Fund |
| 3 | Small Cap | Tata Small Cap Fund |
| 4 | Mid Cap | PGIM India Mid Cap Opportunities Fund |
| 5 | Mid Cap | Kotak Emerging Equity Fund |
| 6 | Mid Cap | SBI Magnum Midcap Fund |
| 7 | Flexi Cap | Parag Parikh Flexi Cap Fund |
| 8 | Flexi Cap | Canara Robeco Flexi Cap Fund |
| 9 | Contra | SBI Contra Fund |
| 10 | Value | ICICI Prudential Value Discovery Fund |
Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Top Mutual Funds for High Returns
These are some top mutual funds for higher returns that parents can use to pay for their child’s future college plans. Remember staying invested for a long time can help you yield higher returns.
1. Aditya Birla Sun Life Small & Midcap Fund
Category: Equity Small Cap
High Returns: This fund has historically provided high returns, but it comes with higher volatility.
2. Axis Long-Term Equity Fund
Category: Equity ELSS (Tax-saving)
High Returns: Offers the dual benefit of potentially high returns and tax savings under Section 80C.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.
| Top Mutual Funds with Dividends | ||
| Sr. No. | Category | Scheme Name |
| 1 | Dividend Yield Fund | Aditya Birla Sun Life Dividend Yield Fund |
| 2 | Dividend Yield Fund | HDFC Dividend Yield Fund |
| 3 | Dividend Yield Fund | ICICI Prudential Dividend Yield Equity Fund |
| 4 | Dividend Yield Fund | LIC MF Dividend Yield Fund |
| 5 | Dividend Yield Fund | SBI Dividend Yield Fund |
| 6 | Dividend Yield Fund | Sundaram Dividend Yield Fund |
| 7 | Dividend Yield Fund | Tata Dividend Yield Fund |
| 8 | Dividend Yield Fund | Templeton India Equity Income Fund |
| 9 | Dividend Yield Fund | UTI Dividend Yield Fund |
Important Note: This is not investment advice. Please do not invest in these mutual funds without proper financial consultation and review. Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Top Mutual Funds with Dividends
Consider these top mutual funds that offer dividends to their investors
1. ICICI Prudential Dividend Yield Equity Fund
Category: Equity Dividend Yield
Dividend Focus: Seeks to provide regular dividends while aiming for capital appreciation.
2. Franklin India Equity Hybrid Fund
Category: Hybrid Equity-oriented
Dividend Focus: Balances equity and debt investments, making it suitable for regular income.Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.
Top Mutual Funds for Long-Term Investment
1. SBI Bluechip Fund
Category: Equity Large Cap
Long-Term Potential: Known for its stability and potential for wealth creation over the long haul.
2. Kotak Standard Multicap Fund
Category: Equity Multicap
Long-Term Potential: Offers flexibility to invest across market caps for sustained growth.
Note: This is not an investment advisor. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.
| Top Mutual Funds to invest in short term | ||
| Sr. No. | Category | Scheme Name |
| 1 | Short Duration | Top Mutual Funds to Invest in short term |
| 2 | Dynamic Bond | ICICI Prudential All Seasons Bond Fund |
| 3 | Dynamic Bond | Aditya Birla Sun Life Dynamic Bond Fund |
| 4 | Dynamic Bond | SBI Dynamic Bond Fund |
| 5 | Dynamic Bond | UTI Dynamic Bond Fund |
| 6 | Corporate Bond Fund | ICICI Prudential Corporate Bond Fund |
| 7 | Corporate Bond Fund | Nippon India Corporate Bond Fund |
| 8 | Money Market | Tata Money Market Fund |
| 9 | Liquid Fund | Aditya Birla Sun Life Liquid Fund |
| 10 | Liquid Fund | UTI Liquid Cash Fund |
Note: This is not investment advice. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.
Top Mutual Funds for Short-Term Investment
These are some of the best mutual funds for short-term investment that parents can consider for your kid’s future college plans.
1. UTI Banking & PSU Debt Fund
Category: Debt Banking & PSU
Short-Term Stability: Suitable for conservative investors seeking stable returns in the short term.
2. IDFC Banking & PSU Debt Fund
Category: Debt Banking & PSU
Short-Term Stability: Focuses on safety and liquidity, making it ideal for short-term parking of funds.Note: This is not investment advice. Please consult your financial advisor before investing in mutual funds. Mutual funds are subject to market risks. Read all scheme-related documents carefully.
FAQs
Are Mutual Funds 100% Safe?
Mutual funds are not risk-free. They are subject to market fluctuations, and the returns are not guaranteed. However, investing in diversified funds with a long-term horizon can mitigate risks.
Are Mutual Funds Safer than FDs?
Mutual funds and fixed deposits serve different purposes. FDs are considered safer but offer lower returns, while mutual funds have the potential for higher returns but come with market-related risks.
What Are the Top Mutual Funds to Invest in 2023?
The top mutual funds for 2023 depend on your financial goals and risk tolerance. Consider consulting a financial advisor to choose the right funds for your specific needs.
Thus, to beat the rising costs of college education, investing in mutual funds can be a viable strategy. Provide your child with a better future by choosing the right mutual fund.
Choose funds that align with your investment horizon and risk tolerance, and consider a diversified portfolio for better risk management. Keep in mind that mutual funds carry some level of risk, so it’s essential to invest wisely and for the long term.
