Mutual funds have become an increasingly popular way to grow wealth. They offer diversified portfolios, less time requirement and high returns. However, not all mutual funds are created equal, and investors must choose funds that align with their investment goals and risk appetite. In this article, we will discuss some of the top 5-star rated mutual funds to invest in 2023.
List of Top 5-star Rated Mutual Fund to invest in 2023
|Name||AUM (in crores)||Minimim lumpsum||CAGR 3Y (%)||CAGR 5Y (%)|
|SBI Small Cap Fund||₹1,32,145.79 Cr||Not allowed||42.96%||15.90%|
|Invesco Infrastructure Fund||₹ 45,691.16 Cr.||₹ 1,000||39.38%||14.95%|
|SBI Banking & Financial Services Fund||₹ 4,63,447.11 Cr.||₹ 5,000||29.66%||12.66%|
|HDFC Index Fund-S&P BSE Sensex||₹ 4,33,467.62 Cr.||₹ 100||31.92%||13.17%|
|IIFL Focused Equity Fund||₹ 4,537.55 Cr.||₹ 1,000||35.38%||18.57%|
SBI Small Cap Fund
SBI Small Cap Fund invests the money in small cap companies i.e. the companies with market capitalization of less than 5000 Crore rupees. This fund is managed by SBI Funds Management Private Limited and has been in existence since September 2009. Since this fund invests in small cap companies, the deal comes with high risk and high reward and is suitable for the people who have high risk appetite and who are looking for long term growth. Over the past 5 years, the SBI Small Cap Fund has delivered an average annual return of around 24%. This return is significantly higher than the average return of the small-cap index, which has delivered an average annual return of around 16% during the same period.
Get a list of best SBI Mutual Fund schemes with latest NAV
Invesco Infrastructure Fund
This fund is managed by Invesco Asset Management (India) Private Limited and has been in existence since June 2007. It is a high-risk, high-reward investment option suitable for investors who have a high-risk appetite and are looking for exposure to the infrastructure sector. The fund’s top holdings include companies such as Larsen & Toubro, Reliance Industries, and NTPC. Over the past 5 years, the Invesco India Infrastructure Fund has delivered an average annual return of around 13%. This return is significantly higher than the average return of the infrastructure index, which has delivered an average annual return of around 10% during the same period.
Get a list of best Invesco Mutual Fund schemes with latest NAV
SBI Banking & Financial Services Fund
SBI Banking & Financial Services Fund is a mutual fund that invests its money in the Banking and Financial Services sector of the economy. This fund is managed by SBI Funds Management Private Limited and has been in existence since March 2015. Over the past 5 years, the SBI Banking & Financial Services Fund has delivered an average annual return of around 28% in SIP. This return is significantly higher than the average return of the financial services index, which has delivered an average annual return of around 16% during the same period.
HDFC Index Fund-S&P BSE Sensex
The HDFC Index Fund-S&P BSE Sensex is a mutual fund that tracks the S&P BSE Sensex, an index of the top 30 companies listed on the Bombay Stock Exchange (BSE). It is a passive investment option managed by HDFC Asset Management Company Limited that aims to replicate the performance of the Sensex. As a passive investment option, the HDFC Index Fund-S&P BSE Sensex invests in the same stocks that are included in the S&P BSE Sensex. The fund’s portfolio is a replica of the index, with the same weightage assigned to each stock as in the Sensex. The top holdings of the fund include companies such as Reliance Industries, HDFC Bank, and Infosys. Over the past 5 years, the HDFC Index Fund-S&P BSE Sensex has delivered an absolute return of 12.87%.
Also read: Highest Return Mutual Fund In Last 10 Years
IIFL Focused Equity Fund
The IIFL Focused Equity Fund is an actively managed mutual fund that invests in a concentrated portfolio of high-quality equity stocks in order to provide long-term capital appreciation. The fund is managed by IIFL Asset Management, a subsidiary of India Infoline Group, and is appropriate for investors with a high risk tolerance and a long investment horizon. The fund’s portfolio is constructed based on the bottom-up analysis of individual stocks and seeks to identify high-quality businesses with a sustainable competitive advantage and a strong management team. The fund’s top holdings include stocks such as HDFC Bank, Reliance Industries, and ICICI Bank. Over the past 5 years, the IIFL Focused Equity Fund has delivered an average annual return of around 17%.
In conclusion, investing in mutual funds can be an excellent way to grow your wealth over time. However, it is important to do your research and choose the right funds for your investment goals. Now that you have learned about 5 five-star rated mutual funds, open Demat account with Angel One and start building your wealth.