Best High Return Mutual Funds to invest in 2023 | Top Mutual Funds with High Returns to Invest in for 2023

 Investors are always searching for diverse investment opportunities with significant potential returns. Investors continue to seek for bigger returns even if mutual funds offer steady returns over the medium to long term. Why not attempt to get high returns from mutual funds while taking on a little high risk? What if we set our sights on 12% or 15% annualised returns as opposed to settling for 10% annualised returns? In this article, we'll outline the top 5 high-return mutual funds to invest in for 2023 and 2024 in order to get superior returns over the long to medium term.

What are High Return Mutual Funds?

Over the medium to long term, index or big cap funds offer steady returns of 10% to 12% (annualised). However, one might expect 12% to 15% annualised returns if they are willing to take on more risk and invest in the particular category of funds.

High returns can be produced by midcap funds, small size funds, sector funds, and theme mutual funds. Some of these funds, nevertheless, can only outperform in the short to medium term. Putting money into these funds can be riskier. Therefore, only invest in mutual fund schemes that have the potential to outperform over the long run.

How we filtered these High Return Mutual Fund Schemes?

Numerous equity mutual fund plans exist. Picking up merely 5 dollars, though, can be difficult. One shouldn't assume that all other investments are terrible. The filters are used to narrow down the list of funds to a more manageable number.

1. selected midcap and smallcap mutual fund strategies that excelled over several market cycles.

2. regarded as sector funds capable of reliably generating returns over the long term. These include banking funds and information technology. Since these industries are more cyclical and perform better in the short term, but are riskier in the medium to long term, we have avoided them.

3. selected funds produced consistent annualised returns over the previous three to five years.

4. Once more, only funds with reliable rolling returns were considered.

5. Consider investing in funds with the lowest expense ratio last.

Who can invest in these mutual funds?

The funds chosen have a high level of risk since they are midcap, smallcap, or sector-specific. For instance, in the past six months, the IT / Technology sector has corrected by more than 20%. Even though there is a chance for new investments, such a setback might occur in the near future.

You can invest in these funds if you are a high-risk investor who is seeking for mutual funds with high returns and is ready to invest for five to ten years.

Investors who prefer a low to moderate level of risk should steer clear of these ETFs.

Such funds should also not be used by investors who seek to make short-term investments.

Top 5 Best High Return Mutual Funds to invest in 2023-2024

The list of high return mutual fund programmes is provided below.

1. Emerging Equities Fund by Canara Robeco
2. Mid Cap Fund Quant
3. Either Kotak Smallcap Fund or SBI Small Cap Fund
4. Fund for Tata Digital India
5. Banking and financial services provided by SBI

Don't believe that other funds are awful because there are various other reliable funds in these areas.

View of the Top High Return Funds in Detailed

Now, let's learn more about these funds.

1. Emerging Equities Fund by Canara Robeco

This mutual fund programme makes large- and mid-cap equity investments.

This fund currently has a 60% largecap, 38% midcap, and 2% smallcap equity allocation.

Performance of the Fund - Annualized Returns

• Last 7 years – 17%
• Last 5 years – 15%
• Last 3 years – 25%
• Last 1 year – 1%

Performance of the Fund - Rolling Returns

In terms of a 3-year rolling return, this fund produced:

• Over 12% returns – 64% of the times
• 1% to 12% returns – 31% of the times
• Negative returns – 5% of the times

In terms of a 5-year rolling return, this fund produced:

• Over 12% returns – 86% of the times
• 1% to 12% returns – 14% of the times
• Negative returns – Zero times

Since its debut, this fund has produced a 21.3% annualised return. Over the past five to ten years, this fund has regularly outperformed the benchmark. This is one of the Best High Return Mutual Funds to Invest In in 2023 and has the lowest cost ratio of 0.59%.

I personally invest in this fund, which we discussed in our prior articles' List of Top Large and Midcap Mutual Funds.

2. Mid Cap Fund Quant

This fund primarily invests in Indian mid-cap firms.

Currently, 31% of this fund's holdings are large-cap companies, and 72% are mid-cap equities.

Performance of the Fund - Annualized Returns

• Last 7 years – 18%
• Last 5 years – 23%
• Last 3 years – 41%
• Last 1 year – 20%

Performance of the Fund - Rolling Returns

In terms of a 3-year rolling return, this fund produced:

• Over 12% returns – 59% of the times
• 1% to 12% returns – 39% of the times
• Negative returns – 2% of the times

In terms of a 5-year rolling return, this fund produced:

• Over 12% returns – 43% of the times
• 1% to 12% returns – 56% of the times
• Negative returns – 1% of the times

Since its inception, this fund has produced a 17.3% annualised return. This is one of the Top High Return Mutual Funds to Invest in in 2023 and has the lowest expense ratio of 0.63%.

3. Either Kotak Smallcap Fund or SBI Small Cap Fund

Although it may invest in other large size or mid cap companies as well, this programme mostly invests in small cap equities in India.

Currently, this portfolio has 45% of its holdings in small-cap companies and 55% in mid-cap equities.

Performance of the Fund - Annualized Returns

• Last 7 years – 22%
• Last 5 years – 20%
• Last 3 years – 33%
• Last 1 year – 16%

Performance of the Fund - Rolling Returns

In terms of a 3-year rolling return, this fund produced:

• Over 12% returns – 67% of the times
• 1% to 12% returns – 33% of the times
• Negative returns – zero times

In terms of a 5-year rolling return, this fund produced:

• Over 12% returns – 87% of the times
• 1% to 12% returns – 13% of the times
• Negative returns – zero times

Since its debut, this fund has produced a 27% annualised return. This is one of the Best High Return Mutual Funds to Invest in India Right Now with the Lowest Expense Ratio of 0.74%.

If you recall, SBI Small Cap Mutual Fund was one of the 10 mutual funds with the highest SIP returns over the past ten years that we covered.

4. Fund for Tata Digital India

This fund's goal is to invest at least 80% of its capital in Indian IT and technology businesses' stock.

The current allocation of this fund is 87% big cap, 8% mid cap, and 5% small cap.

Performance of the Fund - Annualized Returns

• Last 5 years – 27%
• Last 3 years – 27%
• Last 1 year – minus 18%

Performance of the Fund - Rolling Returns

In terms of a 3-year rolling return, this fund produced:

• Over 12% returns – 96% of the times
• 1% to 12% returns – 4% of the times
• Negative returns – zero times

In terms of a 5-year rolling return, this fund produced:

• Over 12% returns – 100% of the times
• 1% to 12% returns – zero times
• Negative returns – zero times

Since its debut, this fund has produced a 20% annualised return. In the previous six months, equities in the technology sector have suffered greatly. It's a fantastic chance for investors to make a lump sum investment or a 6-month SIP in this fund. This is one of the Best High Return Mutual Funds for 2023–2024 from the technology sector, with the lowest expense ratio of 0.34%.

5. Banking and financial services provided by SBI

The Fund makes a minimum of 80% of its equity investments in businesses that provide banking and financial services.

Currently, this portfolio holds a stake in 81% big cap, 15% mid size, and 4% small cap equities.

Performance of the Fund - Annualized Returns

• Last 7 years – 18%
• Last 5 years – 13%
• Last 3 years – 16%
• Last 1 year – 5%

Performance of the Fund - Rolling Returns

In terms of a 3-year rolling return, this fund produced:

• Over 12% returns – 61% of the times
• 1% to 12% returns – 37% of the times
• Negative returns – 2% of the times

In terms of a 5-year rolling return, this fund produced:

• Over 12% returns – 72% of the times
• 1% to 12% returns – 28% of the times
• Negative returns – zero times

Since its debut, this fund has produced a 15% annualised return. In India, the banking industry is an evergreen one that keeps expanding year after year. Despite having a slightly higher cost ratio than average (0.78%), this product is ranked among the best high return mutual funds in the banking and financial services sector. In previous years, we also discussed this fund as one of the Best Banking Funds to Invest in.

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