The Indian stock market closed 2023 with a stellar rise, with BSE Sensex and NSE Nifty both witnessing nearly 20 per cent hike this fiscal year. This spike hugely factored in when it came to the returns of mutual fund investors.
Those who invested in mutual funds in the year bagged major returns, with the top 5 large cap firms delivering over 24 percent returns each, while mid cap and small cap firms delivered nearly over 40 percent each.
The average annual return for large cap mutual funds was 16.15 per cent in 2023, while that of mid cap and small cap firms stood at 30.77 per cent and 34.29 per cent on average, respectively. Large cap firms offered comparatively lower returns last year, while most small cap mutual funds had over 40 percent annual returns.
The highest delivering small cap mutual fund in 2023 was Mahindra Manulife Small Cap Fund, which offered over 53 per cent annual return last year, according to data available on Association of Mutual Funds in India (AMFI).
While large cap funds offered the lowest annual percentage of return in 2023, their total AUMs (assets under management) remained the highest of all, amounting to ₹2,76,639 crore. Mentioned below are the top five small cap, mid cap and large cap funds with the highest return in 2023.
Top 5 large cap mutual funds with highest returns
| Top large cap mutual funds | Annual Returns 2023 |
|---|---|
| Nippon India Large Cap Fund | 28.85% |
| Bank of India Bluechip Fund | 27.05% |
| HDFC Top 100 Fund | 26.61% |
| JM Large Cap Fund | 26.16% |
| Invesco India Large Cap Fund | 24.45% |
Top 5 mid cap mutual funds with highest returns
| Top mid cap mutual funds | Annual Returns 2023 |
|---|---|
| Nippon India Growth Fund | 42.93% |
| JM Midcap Fund | 42.88% |
| Mahindra Manulife Mid Cap Fund | 41.31% |
| HDFC Mid-Cap Opportunities Fund | 41.11% |
| WhiteOak Capital Mid Cap Fund | 38.53% |
Top 5 small cap mutual funds with highest returns
| Top small cap mutual funds | Annual Returns 2023 |
|---|---|
| Mahindra Manulife Small Cap Fund | 53.22% |
| Bandhan Small Cap Fund | 49.48% |
| Franklin India Smaller Companies Fund | 49.44% |
| ITI Small Cap Fund | 48.54% |
| Quant Small Cap Fund | 44.90% |
(Data by Mint, AMFI till December 2023)
Mutual funds are the go-to investment options for long-term investors. One can make a large lump sum investment or sign up for a monthly SIP when it comes to investing in mutual funds, depending on the financial assets of the investor.
While mutual funds don’t come without their own risks, investing in MFs is considered a less risky option since the investments are long term, increasing the possibility of a good return.