If you have been reading up on the importance of Systematic Investment Plans (SIPs), you may
have also been looking for important resources to help you invest. For many individuals,
investing in SIPs becomes a game of chance because of the contrasting sources found online.
However, we’ve done our research across many expert portfolio managers and have come up
with this year’s top ten names. In this article, we will give you the 10 best Mutual Funds (MFs)
for SIP investment in 2023.
List of Top 10 Mutual Funds for SIPs
Before we delve into more details regarding analysis and factors leading to the comparison,
here is our list of the ten best Mutual Funds for SIP investment for the year. Read the
categories carefully before creating a diverse portfolio based on your preference!
1.Quant Tax Plan Direct-Growth: started by Quant Mutual Fund, this plan helps create
capital appreciation by directing funds mainly in equity shares with potential for success.
Their ancillary goal is to provide dividends and other incomes.
2.Quant Infrastructure Fund Direct-Growth: This fund invests in equity and related
instruments belonging to the infrastructure sector. In 2023, this is the best choice to
make in the equity fund model.
3.BOI AXA Small Cap Fund Direct-Growth: This equity MF scheme was launched by
BOI AXA and is one of the most promising picks. As their focus is on long-term asset
growth, they have invested in equity and equity-related assets in small-cap
4.PGIM India Flexi Cap Fund Direct-Growth: Formerly known as PGIM India Diversified
Equity Direct-G, it aims to improve the value of your capital growth by mainly investing in
a diversified portfolio of equity and equity-related instruments, including derivatives.
1.ICICI Prudential All Seasons Bond Fund Direct-Plan-Growth: This investment
scheme holds several debt and money market instruments. Additionally, the scheme
aims to establish optimum yield, ensure safety, and create a liquidity balance.
2.Edelweiss Government Securities Fund Direct-Growth: Their objective goal is to
maximise earnings by delving into the money market as well as short-term debt
3.HDFC Credit Debt Risk Debt Fund Direct-Growth: This plan works to help investors’
capital appreciation and growth by directing funds to AA and lower-rated corporate
1.Quant Multi Asset Fund Direct-Growth: This SIP can help investors create more
income and promote capital appreciation by diversifying into instruments across the
three classes of assets – equity, debt, and commodity markets.
2.Quant Absolute Fund Direct-Growth: Owned by Quant Mutual Fund, this plan also
considers long-term capital growth and improving the current income. It also dabbles
with a blend of fixed-income assets and equity.
3.Baroda BNP Paribas Aggressive Hybrid Fund Direct-Growth: This scheme creates a
diversified portfolio of equity and equity-related investments as well as fixed-income
securities to boost the value of your capital.
Comparison and Analysis of the Top 10 Mutual Funds
1.Overall performance and returns: Investors should review the historical performance
of funds over various time periods, such as a year, three years, or five years. By
examining the returns generated by these funds, investors can assess their consistency
and alignment with the fund’s investment objectives. It’s important to note that past
performance does not guarantee future results, but it can provide valuable insights into
the fund’s track record.
2.Investment styles and strategies: Investors should evaluate whether the funds focus
on investing in large-cap, mid-cap, or small-cap stocks. Additionally, it is important to
determine whether the funds follow a growth-oriented or value-oriented investment
approach. By considering these factors, investors can assess whether an MF’s
investment style and strategy align with their investment preferences and goals.
3.Risk profile and volatility: Different funds may carry varying levels of risk, depending
on factors such as asset allocation, sector exposure, and investment strategy. Investors
should evaluate the risk measures associated with the funds, such as standard deviation
and beta, to gauge their volatility and potential downside. It’s important to choose funds
that align with an investor’s risk tolerance and investment objectives.
4.Expense ratios and charges: Investors should carefully evaluate the expense ratios of
the top MFs, as these fees are deducted from the fund’s assets and can reduce overall
returns. Additionally, investors should consider any additional charges, such as entry
load, exit load, or transaction fees. Comparing the expense ratios and charges of
different funds can help investors choose funds that offer cost-effective investment
5.Fund size and liquidity: Larger funds may have the advantage of economies of scale
and a more extensive research team, which can potentially lead to better investment
decisions. Liquidity is also crucial, as it ensures ease of buying and selling fund units.
Investors should assess the fund size and liquidity to determine whether the fund can
effectively accommodate their investment needs.
6.Track record and consistency: Investors should analyse how the fund has performed
compared to its benchmark and peers over various market cycles. Consistent
performance over time indicates that the fund has navigated different market conditions
effectively. A fund with a strong track record and consistency may provide investors with
confidence in its ability to deliver sustainable returns.
Factors to Consider Before Investing in MFs
1.Risk tolerance and investment goals: Different MFs carry varying levels of risk, and
it’s important to choose funds that align with your risk tolerance. Additionally, consider
your investment goals, such as long-term wealth creation, retirement planning, or saving
for a specific financial milestone. Aligning your investment goals with the appropriate MF
can help you achieve desired outcomes.
2.Investment time horizon: MFs are generally recommended for long-term investments
due to the potential for compounding returns. Assessing your investment time horizon,
whether short-term, medium-term, or long-term, will help you select funds that align with
your desired investment duration.
3.Asset allocation and diversification: A well-diversified portfolio can help mitigate risk
by spreading investments across asset classes such as equities, bonds, and cash.
Assess whether the MFs have a balanced asset allocation approach that aligns with
your risk profile and investment objectives.
4.Past performance and future outlook: Consider the fund’s performance over different
market cycles and evaluate its consistency. Additionally, research the fund’s investment
philosophy and outlook to gauge whether it aligns with your investment expectations.
5.Fund manager’s track record and experience: Assess the experience, qualifications,
and investment approach of the fund manager. Look for consistency in their decision-
making process and evaluate their ability to generate returns in various market
conditions. A skilled and experienced fund manager can play a significant role in the
success of an MF.
Investing wisely is crucial, and MFs are a reliable choice. In 2023, these 10 funds for SIP
investment stand out for their exceptional performance, diversification, and strong track
records. With a blend of growth, income, and stability, they offer investors an opportunity to
achieve long-term financial goals while minimising risk.