Best Mutual Funds to Invest in 2022

Best Mutual Funds to Invest
Best Mutual Funds to Invest in 2022

by 5paisa Research Team Last Updated: Dec 12, 2022 - 09:25 pm 18.1k Views
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Here are Best Mutual Funds you can invest in today:

Fund Name

3Y annualised returns

(As on September 19, 2022)

Nippon India Small Cap Fund

36.99% p.a.

Quant Small Cap Fund

52.72% p.a.

Canara Robeco Small Cap Fund

43.00% p.a.

Quant Mid Cap Fund

41.37% p.a.

Tata Small Cap Fund

34.89% p.a.


We have selected these Mutual Funds based on the performance, but you should consider investing in this Mutual fund based on your risk capacity & time horizon of your goals.

Before we move forward, consider taking a quick look at these funds:

1. Nippon India Small Cap Fund

Nippon India Small Cap Fund was launched by Nippon Mutual Fund on 30th June 1995. This Fund's primary goal is to produce long-term capital appreciation by investing mainly in equity and equity-related securities of small cap companies. With a consistent past record, this fund has performed well in its category. 

2. Quant Small Cap Fund

Quant Small Cap Fund is an Equity Mutual Fund, launched by Quant Mutual Fund on 15th April 1996. By investing in a well diversified portfolio of small-cap companies, this fund aims to achieve capital appreciation for the investors. It also has a higher consistency of return & a strong capacity to limit losses in a declining market phase. 

3. Canara Robeco Small Cap Fund 

Canara Robeco Small Cap Fund is an Equity Mutual Fund, launched by Canara Robeco Mutual Fund on 19th December 1987. The main objective of this fund is to generate capital appreciation by investing mainly in Small Cap Companies. Being the oldest fund in the market, it has performed well over the years. 

4. Quant Mid Cap Fund

Quant Mid Cap Fund, an Equity Mutual Fund was launched by Quant Mutual Fund on 15th April 1996. This scheme aims at providing long term capital appreciation by investing in a well diversified portfolio of Mid Cap Companies. 

5. Tata Small Cap Fund

Tata Small Cap Fund, an Equity Mutual Fund was launched by Tata Mutual Fund on 30th June 1995. This fund seeks to generate capital appreciation by predominantly investing in Small Cap Companies. You can start investment in this fund starting from just ₹100.

Moving Further, let us now discuss some industry level data with you, so as of August 31, 2022, there were above 13.65 Crore Mutual Fund Accounts, or "Folios." Surprising, right? Low – Investment, compounding interest & Hassle-Free process are among the factors that make a Mutual Fund investment attractive. In this article, we will understand how one Mutual Fund differs from another & what a Best Mutual Fund is!

Generally, there are many types of Mutual Funds available in India. They come with numerous categories, such as Equity Mutual Funds, Debt Mutual Funds, & Hybrid Funds, depending on their underlying assets, such as Equities, Debt, or Gold. All these funds have different Risk Profiles & Investment Objectives. If you're looking for the Best Mutual Fund, you must consider your Risk Capacity & Time horizon of your goals. Herein, your capacity to take risks builds up your Risk Profile & Time horizon is the period for which you’re planning to invest for your goals!

So, is there any Mutual Fund that is best for all of us? Not, really!! Basically, No single fund is ideal for everyone. The Mutual Fund(s) that are suitable for you will depend on your investment goals, Risk profile, and Time horizon.


Now who should invest in Mutual Funds?

Technically, Investments in Mutual Funds can be made by Individuals (citizens of India), Non-Resident Indians (NRIs), and HUFs and you must be KYC Compliant & be at least 18 years old (a minor can invest with a guardian).
Apart from this, you can invest in a Best Mutual Fund if you’re looking for:

1. Convenience – Mutual Funds can be a great alternative for you if you find it challenging to invest in stocks individually.

2. Diversification – It helps you shield the negative consequences of market volatility in specific sectors helping you diversify your investment.

3. High Regulation- Closely regulated by the Securities & Exchange Board of India (SEBI). To preserve transparency, it mandates all funds to disclose their expense ratio, NAVs, and month-end portfolios.

4. Discipline Investing – With Systematic Investment Plans (SIPs), you can choose the amount of SIP, the Frequency (Eg: Monthly) & invest regularly. This helps you to build a disciplined investment habit!

5. Reducing Risk – AMCs are comprised of qualified professionals who continuously monitor geopolitical, economic and stock market concerns. As a result, they make the appropriate investments for you to reduce the risk factor while investing.


How to select the Best Mutual Fund for yourself?

We would all like to know the best Mutual Funds that we can invest in. This section will highlight some of the important factors that can assist you in choosing the top best mutual funds to invest in:

Your Goals: What are your future expectations & how long are you expecting to invest? This is the foundation! Without a specific goal, you might wish to sell your investment even if there are any minor swings in the! For instance: Capital appreciation, saving on taxes, and Buying a House can be termed Goals.

Risks: When you don't know what you're entering into, there is a investment risk you should consider before picking a Best Mutual Fund for yourself and is it manageable or not.

Performance of the Fund: To properly evaluate a fund's performance, it is important for you to look at the performance record of the fund manager or fund management team. Herein, a strong management team with a proven track record is essential.

Expense Ratio: This is a fee charged to an investor for efficient investment management. To find a mutual fund with a lower overall cost, you can search for mutual funds with a lower or average expense ratio.

Category Selection: Choosing the Best Mutual fund by category can occasionally be challenging, isn't it? Look at the below-given table to see how funds are categorized as Low, Mid, and High Risk to make the process easier for you.

a) Low Risk:

Below 1 Yr = Liquid Funds, Ultra Short term Fund
1-3 Yr = Short-term Debt Investments
3-5 Yr = Balanced Mutual Funds (Hybrid)
5+ Yrs = Large Cap Funds, Multi Cap Funds

b) Mid Risk:

Below 1 Yr = Short Term Debt Funds
1-3 Yr = Balanced Mutual Funds (Hybrid)
3-5 Yr = Large Cap Funds, Multi Cap Funds
5+ Yrs = Mid Cap Funds / Small Cap Funds

c) High Risk:

Below 1 Yr = Long Term Debt Funds
1-3 Yr = Large Cap Funds, Multi Cap Funds
3-5 Yr = Mid Cap Funds / Small Cap Funds
5+ Yrs = Mid Cap Funds / Small Cap Funds


Check our how your investment into Mutual Funds will be taxed

Investing & saving tax if required, go hand-in-hand. So, Did you know? You can also save taxes with the help of Mutual Funds! ELSS known as Equity Linked Savings Scheme helps you to reduce your tax burden up to an amount of ₹1.5 Lakhs in a financial year under section 80C. Not just that, there are tax benefits associated with Equity and Non-Equity Mutual Fund Schemes.
The table below outlines the tax charged on Equity and Non-Equity funds and aids in defining the holding period (i.e., Long term & Short term).

Nature of Profit

Equity Fund

Non-Equity Fund

Holding Period for Short term

Less than 1 Year

Less than 3 Years

Holding Period for Long term

1 Year

3 Years

Short-term Capital Gains

15% + 4% Cess = 15.60%

As per the tax rate of the investor (30% + 4% cess = 31.20% for investors in the highest tax slab)

Long-term Capital Gains

10% + 4% cess = 10.40% (if the long term gain exceeds Rs. 1 Lakh)

20% with indexation


Moreover, If you invest in a Hybrid Mutual Fund, the tax will depend upon the underlying asset. That is, if Hybrid Fund makes up 65% of the portfolio, they will be taxed like those from an Equity Fund. On the other hand, if the allocation is less than 65% to equities, it would be taxed similarly to a Debt fund.


SIPs, the popular mode of Mutual Investment?

With a simple approach to build long-term wealth through regular investments, SIPs allow you to invest a small amount every month while averaging the cost of investing.
On that note, to begin investing through SIPs starting at just ₹100!



In recent years, Mutual Funds have been the most preferred way of investing among other investments. Picking a Best Mutual Fund, helps you save for your future Financial Goals without putting too much strain on your finances. All you have to do is to be mindful when selecting a fund that best suits your needs & keep a sufficient amount in your bank account in case you choose recurring payments i.e., SIPs!

And Yes, you got that right.

SIP investing is as effortless as sipping a cup of tea!

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About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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