The Best Mutual Funds to Invest in Now: 12 of the Best (2023)


By Daria Uhlig on May 23, 2023
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  • Asset allocation method
  • bond fund
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  • what to consider first

The Best Mutual Funds to Invest in Now: 12 of the Best (2)

Vadim Pastukh /

investment fundHelps you build a diversified portfolio without researching stocks and other assets separately. While generally safer than investing in personal assets, choosing the right mutual funds can be a daunting process, with options ranging from extremely easy to extremely risky. GOBankingRates has rounded up some of the best mutual funds for 2023 to help you take the guesswork out of choosing the one that's right for you.

I understand:Why a Gold IRA Is Essential for a Diversified Retirement Portfolio

How We Picked the Best Mutual Funds for 2023

To determine the best mutual funds for 2023, GOBankingRates considered several factors, including:

  • Annual and long-term results
  • Number of years since fund inception
  • Fund Manager Order
  • morningstar rating
  • brokerage fee
  • cost ratio

Different comparative risks and incomes are also consideredTypes of Mutual Funds. Here are the 12 best picks for 2023.

Best Stock Mutual Funds With Low Fees

The expense ratio is the percentage of a fund's assets that is used for operating expenses. The lower the number, the better, because it means more money is invested.

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1. BlackRock Investor Mid-Cap Value Fund A股(MDRFX)

This high-yield fund invests in mid-cap stocks that the fund manager identifies as emerging dividend producers. Morningstar rates the fund as medium risk -- indicating moderate volatility in monthly returns -- and above-average returns.

  • Year-to-date performance:2,98%
  • Five-year performance:8,49%
  • 10 years performance:8,70%
  • Cost ratio:0.99%

2. Madison Class Y Dividend Income Fund (BHBFX)

The Madison Dividend Income Fund seeks to achieve income and growth by investing in securities of dividend-paying companies with market capitalizations in excess of $1 billion. Typically 80% of the fund's net assets consist ofdividend stock.

  • Year-to-date performance:-4,57%
  • pet-Annual results:9,14%
  • 10 years performance:9,70%
  • Cost ratio:0,91%

3. Putnam Large Cap Class A Fund (PEYAX)

This Putnam fund focuses on value stocks with the potential for capital growth, income, or both. The majority of the fund's investments are in U.S. common stocks. Larger timbers includeback,Exxon Mobil,MicrosoftIwalmart.

  • Year-to-date performance:1,84%
  • pet-Annual results:10,11%
  • 10 years performance:10,54%
  • Cost ratio:0.89%

Best Asset Allocation Fund

Asset allocation funds invest in a number of different types of assets for added diversity.

4. Janus Henderson Balance Fund Class T (JABAX)

The fund prioritizes long-term capital growth while preserving capital, balanced against current income. It typically invests 35% to 65% in equity securities, with the remainder in fixed income securities and cash. The fund has an above-average three-year risk rating and average return.

  • Year-to-date performance:6,31%
  • pet-Annual results:7,85%
  • 10 years performance:8,08%
  • Cost ratio:0.82%

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5. Dionice BlackRock Sustainable Balanced Fund Investor A (MDCPX)

The fund invests in a variety of assets, including equities, fixed income securities and derivatives. Although allocations vary, mutual fund advisors typically hold 25% equities and 25% senior equitiesFixed income securitiesExamples include U.S. government and corporate bonds. This fund has above-average returns and below-average risk.

  • Year-to-date performance:6,31%
  • pet-Annual results:7,21%
  • 10 years performance:7,84%
  • Cost ratio:0.82%

6. Fidelity Multi Asset Income Fund (FMSDX)

The Fidelity Multi-Asset Income Fund invests in stocks, investment-grade and non-investment-grade bonds, cash and other assets. also investeddebt instrument. The fund has a below-average risk profile and high returns.

  • Year-to-date performance:4,54%
  • pet-Annual results:9,24%
  • 10 years performance:not applicable
  • Cost ratio:0.75%

Best Bond Mutual Funds

Bond funds diversify your portfolio while providing you with a regular stream of income. While returns are typically lower than stock funds, many bond funds -- especially those that invest in investment-grade bonds -- are also less risky.

7. Calvert Core Bond Fund Klasa A (CLDAX)

The Fund typically invests at least 80% of its net assets in U.S. dollar investment grade debt securities. Up to 5% of assets can be invested in junk bonds. However, it is a low risk high return fund.

  • Year-to-date performance:2,15%
  • pet-Annual results:3,39%
  • 10 years performance:3,52%
  • Cost ratio:0.74%

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8. Payden Fund High Income Investor Category (PYHRX)

Payden High Income Fund invests in debt securities and income generating securities. Typically 80% of its portfolio consists of below-investment-grade corporate debt, making the fund riskier than other funds but with above-average returns.

  • Year-to-date performance:4,17%
  • pet-Annual results:4,36%
  • 10 years performance:3,96%
  • Cost ratio:0,60%

9. Guggenheim Class P Core Bond (SIUPX)

The Guggenheim Core Bond Fund invests primarily in investment grade fixed income securities, which may includeclosed fundItransferable funds.It is a lower risk fund with stable returns and low fees.

  • Year-to-date performance:2,90%
  • pet-Annual results:1,06%
  • 10 years performance:2,49%
  • Cost ratio:0.78%

The most famous fund with a long history and high returns

Every winning fund in this category has been around for at least 10 years and has delivered solid returns. Nobody's expense ratio exceeds 1%.

10. Fidelity OTC Portfolio (FOCPX)

This is a large-cap growth fund that invests at least 80% of its assets in growth and value securities traded on NASDAQ oron the bench, providing exposure to small and mid-cap stocks. More than 25% is typically invested in technology.

  • Year-to-date performance:21,75%
  • pet-Annual results:13,56%
  • 10 years performance:16,94%
  • Cost ratio:0.81%

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11. Fidelity Select Healthcare Portfolio (FSPHX)

This High Yield Fund Invests At Least 80% of Its Assetshealth care stocks— That is, companies that design, manufacture, or sell healthcare-related products or services. With equities making up the majority of investments, the fund has an above-average risk profile.

  • Year-to-date performance:4,13%
  • pet-Annual results:10,52%
  • 10 years performance:13,86%
  • Cost ratio:0.69%

12. T. Rowe Price All-Cap Opportunities Fund (PRWAX)

T. Rowe Price All-Cap Opportunities Fund invests at least 65% of its assets in stocks of U.S. companies operating in industries that T. Rowe Price determines have the fastest or greatest growth potential. also possibleInvest in foreign stocks. The fund is slightly riskier than average but offers high returns.

  • Year-to-date performance:10,86%
  • pet-Annual results:14,24%
  • 10 years performance:15,49%
  • Cost ratio:0.81%

What is the average performance of mutual funds?

average mutual fund returnVaries by fund type. The best mutual fund investments range from extremely high returns to fairly modest returns, all with associated risks.

  • stock mutual fund- high risk:12%
  • connectMutual Funds - Low Risk:5%-6%
  • money market mutual fund— Minimum risk:about 1%

When looking at returns, you should not only be looking at year-to-date returns, but also five-year, ten-year, and lifetime estimates.

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What to Consider When Choosing a Mutual Fund

There is no foolproof way to choose profitable mutual funds, but you can maximize your chances of striking the right balance between growth and risk. For example, if you're early in your career and many years away from retirement, you might choose a mutual fund that invests in riskier small-cap stocks with greater return potential. On the other hand, if you are nearing retirement, you can choose funds that are less risky, such as investing inGovernment BondsOr large-cap stocks, albeit with generally lower returns.

Some mutual funds, called target funds, select a portfolio of securities based on a target retirement date. As time progresses and this target date approaches, the fund manager rebalances the portfolio to reduce risk. That's great for a set, forget pension funds.


Basically, investors should consider whether they want an active or passive fund, whether the fees make sense for them, and whether their portfolio is overall balanced. While it is possible to rank the best mutual funds based on performance, volatility,Fees and risks also matter.

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Ivan Cesar contributedUsed to report this article.

Information correct as of May 23, 2023 and subject to change.

This article has been updated with additional references since its original publication.

Our in-house research team and on-site financial experts work together to create accurate, unbiased and up-to-date content. We check every statistic, quote and fact using reliable primary sources to ensure the information we present is accurate. You can learn more about the GOBankingRates process and criteria on our pageeditorial policy.


Which mutual fund is performing best now? ›

Best Performing Equity Mutual Funds
Fund Name3-year Return (%)*5-year Return (%)*
Quant Mid Cap Fund Direct-Growth40.25%22.81%
Nippon India Small Cap Fund Direct- Growth47.30%22.57%
Quant Flexi Cap Fund Direct-Growth39.61%22.55%
Aditya Birla Sun Life Digital India Fund Direct-Growth33.73%21.94%
6 more rows

What mutual funds will do well in 2023? ›

Best-performing U.S. equity mutual funds
TickerName5-year return
SSAQXState Street US Core Equity Fund13.29
PRBLXParnassus Core Equity Investor13.11
YCGEXYCG Enhanced12.94
FITLXFidelity® U.S. Sustainability Index12.84
3 more rows
5 days ago

What are the top 3 mutual funds? ›

Large Value
  • #1. Fidelity® New Millennium Fund® FMILX.
  • #2. Applied Finance Select Fund AFVLX.
  • #3. Dodge & Cox Stock Fund DODGX.

What mutual fund has the highest 10 year return? ›

Best Mutual Fund for 10 Years Which Have Provided Great Returns
  • Reliance Large Cap.
  • ICICI Prudential Bluechip Equity Fund.
  • ICICI Prudential Bluechip Equity Fund.
  • Tata Equity P/E Fund.
  • HDFC Small Cap Fund.
  • Aditya Birla Sun Life Tax Relief 96.
  • ICICI Prudential Equity & Debt Fund.
  • Mirae Asset India Equity Fund.
May 25, 2023

Which mutual fund pays highest? ›

Scheme NameNo of Dividends during PeriodReturns from Dividends during Period
ICICI Prudential Equity-Arbitrage Fund(IDCW-Payout)4620.99
Aditya Birla Sun Life Arbitrage Fund(IDCW)4520.12
IDFC Arbitrage Fund-(M-IDCW)5919.85
IDFC Equity Savings Fund-(M-IDCW)4712.76
20 more rows
Feb 17, 2023

Will mutual funds go up in 2023? ›

Debt mutual funds are likely to offer better returns in 2023. They will offer even higher returns when the RBI starts cutting interest rates. Want to find out what's happening?

What is the safest investment in 2023? ›

Here are the best low-risk investments in July 2023:
  • High-yield savings accounts.
  • Series I savings bonds.
  • Short-term certificates of deposit.
  • Money market funds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
Jul 1, 2023

Which 5 star mutual fund has 10 year performance? ›

Top 5 Multi Cap Equity Mutual Funds in 10 Years

Quant Active Fund: It has given a return of 22.02% in 10 years. The fund tracks Nifty 500 Multicap 50:25:25 Total Return Index. Invesco India Multicap Fund: It has given a return of 18.11% in 10 years. The fund tracks Nifty 500 Multicap 50:25:25 Total Return Index.

Should I invest in mutual funds when market is down? ›

Keep investing—especially when the market is down.

But it's important to keep investing money even if the market is dropping. Seems backwards, doesn't it? Think of it this way: When the market drops, your mutual fund shares are on sale—you're getting them for a lower price because the market is down.

Which is the rank 1 mutual fund? ›

Large Cap FundCrisil RankNAV (Rs./Unit)
Axis Bluechip Fund (G) Scheme: Axis Bluechip Fund (G) Performance Charts Investment Info Holdings Peer ComparisonRank 146.26
CR Bluechip Equity Fund - D (G) Scheme: CR Bluechip Equity Fund - D (G) Performance Charts Investment Info Holdings Peer ComparisonRank 151.40
4 more rows

What are the safest mutual funds to invest in? ›

The 3 Safest Mutual Funds to Buy Now
STSEXBlackrock Exchange Portfolio$1,836.46
PRDGXT. Rowe Price Dividend Growth Fund$66.00
VWESXVanguard Long-Term Investment-Grade Fund$7.93
Jun 5, 2023

What investments are better than mutual funds? ›

Considering most mutual funds give you an average return of about 9-12% per year, you could consider investing in bonds, stocks of blue-chip companies (Indian and American), ETFs of foreign stock indices, or even government schemes like the PPF and the NPS.

Where should you invest your money right now? ›

Overview: Best investments in 2023
  • High-yield savings accounts. Overview: A high-yield online savings account pays you interest on your cash balance. ...
  • Short-term certificates of deposit. ...
  • Series I bonds. ...
  • Short-term corporate bond funds. ...
  • Dividend stock funds. ...
  • Value stock funds. ...
  • REIT index funds. ...
  • S&P 500 index funds.
4 days ago

Where to invest for 10% annual return? ›

Where can I get 10 percent return on investment?
  • Invest in stocks for the short term. ...
  • Real estate. ...
  • Investing in fine art. ...
  • Starting your own business. ...
  • Investing in wine. ...
  • Peer-to-peer lending. ...
  • Invest in REITs. ...
  • Invest in gold, silver, and other precious metals.

How many years is best for mutual funds? ›

If you are actually looking at equity funds to help you achieve your long term goals then you at least need to give yourself a holding period of 8-10 years. For debt funds, the outlook on rates should be your key driver for holding period.. Unlike equity funds, the debt funds do not really depend on long term holding.

What mutual funds are the best at the market crashes? ›

  1. Federal Bond Funds. Several types of bond funds are particularly popular with risk-averse investors. ...
  2. Municipal Bond Funds. Next on the list are municipal bond funds. ...
  3. Taxable Corporate Funds. ...
  4. Money Market Funds. ...
  5. Dividend Funds. ...
  6. Utilities Mutual Funds. ...
  7. Large-Cap Funds. ...
  8. Hedge and Other Funds.

What are 5 star mutual funds? ›

The 5-star rated mutual funds are the ones that have delivered consistently good returns in a span of 3, 5 and 10 years. Also, such kind of rating is assigned to funds that have not only grossed more than their benchmark but also exceeded the average return of the fund category.

What are the best performing mutual funds year to date? ›

The Best Mutual Funds of July 2023
  • The Hartford Core Equity Fund (HGIYX) ...
  • Schwab S&P 500 Index Fund (SWPPX) ...
  • Dodge & Cox Income Fund (DODIX) ...
  • Schwab U.S. Large-Cap Growth Index Fund (SWLGX) ...
  • Vanguard Mid-Cap Value Index Fund (VMVAX) ...
  • The Hartford Short Duration Fund (HSDIX) ...
  • Vanguard International Growth Fund (VWIGX)
5 days ago

Are mutual funds good to have now? ›

Mutual funds are largely a safe investment, seen as being a good way for investors to diversify with minimal risk. But there are circumstances in which a mutual fund is not a good choice for a market participant, especially when it comes to fees.


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