Table of Contents
ICICI Prudential Technology Fund
Aditya Birla Sun Life Digital India Fund
Principal Emerging Bluechip Fund
SBI Technology Opportunities Fund
Looking for the best mutual funds for SIP 2023? Investing in mutual funds through systematic investment plans (SIPs) can be an effective way to build wealth over the long term. SIPs allow investors to invest a fixed amount regularly, regardless of market conditions, thereby benefiting from rupee cost averaging. As we enter 2023, it is crucial to identify the best mutual funds for SIPs to maximize returns and achieve financial goals.
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1. ICICI Prudential Technology Fund
It is among the best mutual funds for SIPs. ICICI Prudential Technology Fund is an equity-sectoral fund that aims to generate long-term capital appreciation by investing primarily in equity and equity-related securities of technology-intensive companies. It has a high-risk profile, which makes it suitable for investors with a higher risk appetite. The fund has a track record since its launch on 3rd March 2000 and has delivered a CAGR/Annualized return of 11.8% since inception.
Historically, the fund has exhibited volatility in its returns, with negative returns of -23.2% in 2022, followed by impressive gains of 75.7% in 2021 and 70.6% in 2020. As of 31st May 2023, the fund’s net asset value (NAV) stood at ₹134.02, and its net assets were around ₹9,940 Cr. The expense ratio is 2.07%, and the minimum investment amount is ₹5,000.
The fund’s top holdings include Infosys Ltd, Tata Consultancy Services Ltd, Bharti Airtel Ltd, HCL Technologies Ltd, and Tech Mahindra Ltd, among others. These holdings highlight the fund’s focus on technology-intensive companies. The fund is managed by Vaibhav Dusad and Sharmila D’mello.
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2. Aditya Birla Sun Life Digital India Fund
Aditya Birla Sun Life Digital India Fund, previously known as Aditya Birla Sun Life New Millennium Fund, is another equity-sectoral fund that primarily invests in technology and technology-dependent companies. The fund aims for long-term capital growth and income generation through a diversified portfolio focused on the technology sector. Like ICICI Prudential Technology Fund, it carries a high-risk profile.
Since its inception on 15th January 2000, the fund has delivered a CAGR/Annualized return of 11.3%. The fund’s returns have shown some volatility, with a negative return of -21.6% in 2022, followed by gains of 70.5% in 2021 and 59% in 2020. As of 31st May 2023, the NAV of the fund was ₹121.66, and its net assets were around ₹3,250 Cr. The expense ratio is 2.19%, and the minimum investment amount is ₹1,000.
The top holdings of Aditya Birla Sun Life Digital India Fund include Infosys Ltd, Tata Consultancy Services Ltd, HCL Technologies Ltd, Tech Mahindra Ltd, and LTIMindtree Ltd. These holdings align with the fund’s objective of investing in technology-related companies. The fund is managed by Kunal Sangoi and Dhaval Joshi.
3. Principal Emerging Bluechip Fund
The Principal Emerging Bluechip Fund is one of the best mutual funds for SIPs. It is a large and mid-cap equity fund that aims to achieve long-term capital appreciation by investing in mid-cap and small-cap companies. Launched in November 2008, the fund has provided a CAGR/Annualized return of 24.8% since its inception, making it one of the best-performing funds in its category.
With an expense ratio of 2.08%, the Principal Emerging Bluechip Fund is managed by Principal Pnb Asset Management Company Private Limited. The fund has a moderately high risk profile, making it suitable for investors with a higher risk appetite. The fund has consistently outperformed its benchmark and peers, making it one of the best mutual funds for SIPs in 2023.
4. SBI Technology Opportunities Fund
The SBI Technology Opportunities Fund has consistently delivered impressive returns over the years. Thus, it should be considered among the best mutual funds for SIPs. In 2013, the fund generated a return of 29.2%, followed by a modest return of 2.4% in 2014. However, in the subsequent years, the fund displayed strong performance, with returns of 13% in 2017, 17.1% in 2018, and a remarkable 47.3% in 2020. The fund manager’s astute investment decisions led to an exceptional return of 66.4% in 2021. Although the fund experienced a slight setback in 2022 with a negative return of 15.5%, it quickly bounced back in 2023, delivering a return of 18.8% over a five-year period.
The fund primarily focuses on the technology sector, which constitutes the majority of its portfolio. As of April 2023, the fund allocated 67.88% of its assets to technology stocks, reflecting its commitment to investing in companies at the forefront of technological innovation. This strategic allocation has proven beneficial for the fund, as the technology sector has experienced exponential growth in recent years.
The top holdings of the SBI Technology Opportunities Fund include prominent technology companies such as Infosys Ltd, Tata Consultancy Services Ltd, and Tech Mahindra Ltd. These companies have consistently performed well, and their inclusion in the fund’s portfolio contributes to its strong returns. The fund also has a significant allocation to communication services and consumer cyclical sectors, further diversifying its holdings.
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5. TATA Digital India Fund
TATA Digital India Fund is an equity-sectoral fund that was launched on December 28, 2015, with the aim of seeking long-term capital appreciation by investing at least 80% of its net assets in equity/equity-related instruments of companies in the Information Technology (IT) sector in India. Managed by Tata Asset Management Limited, the fund carries a high-risk profile and has delivered a CAGR (Compound Annual Growth Rate) of 17% since its inception.
As of June 9, 2023, the net asset value (NAV) of TATA Digital India Fund stood at ₹32.1472, with net assets worth ₹6,765 crore as of April 30, 2023. The fund falls under the equity-sectoral category, which focuses on a specific sector of the market, in this case, the IT sector. Investors should be aware that sectoral funds carry a higher level of risk compared to diversified equity funds, as they are exposed to the performance of a single sector.
Investors interested in investing in TATA Digital India Fund can start with a minimum investment of ₹5,000. The fund also offers a systematic investment plan (SIP) option, with a minimum SIP investment of ₹150. The exit load for the fund is 0.25% for redemption within 3 months, and no exit load applies for redemption after 3 months. This is another of the best mutual funds for SIPs.
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Conclusion
In 2023, it is important to identify the best mutual funds for SIPs to maximize returns and achieve financial goals. Among the top mutual funds for SIP in 2023, we have discussed several options. When considering investing in mutual funds through SIPs, it is essential to evaluate your risk appetite, investment goals, and time horizon. Consulting with a financial advisor can provide personalized guidance and help you make informed investment decisions. By choosing the best mutual funds for SIPs in 2023, you can set yourself on the path to achieving your financial objectives and building wealth over the long term.
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