ChatGPT is an artificial intelligence tool that can give you almost any answer. While some have questioned its accuracy in some areas, ChatGPT also offers personal finance tips and advice on investing in mutual funds. When I asked ChatGPT which are the best mutual funds to invest in in 2023, I got mixed responses until I got the answers I needed to write this article. To summarize what ChatGPT says about investing in mutual funds: ChatGPT recommended investment trust list And our views on these funds.
What are ChatGPT’s reactions to ‘Best Mutual Funds to Invest in 2023’?
ChatGPT says: However, we can provide general guidelines to help investors make an informed decision when choosing a mutual fund. “
Key Factors ChatGPT Considers When Investing in Mutual Funds
When investing in mutual funds, it is essential to consider factors such as the fund’s investment objectives, investment history, fees and risk profile.
ChatGPT Offers Tips For Picking The Best Mutual Funds To Invest In 2023
Here are some tips to help investors find the best mutual funds to invest in 2023.
#1 – Determine Your Investment Goals and Risk Tolerance
Before choosing a mutual fund, it is important to determine your investment goals and risk tolerance. This will help you choose a mutual fund that fits your investment objectives and help you reach your financial goals.
#2 – Research Mutual Fund Performance
Investors should study mutual fund performance over a long period of time, such as 5 to 10 years, and compare it to the benchmark index. It is also important to check the consistency of the fund’s historical returns and performance.
#3 – Look for funds with low expense ratios
Expense ratios can have a significant impact on mutual fund returns. Therefore, investors should look for funds with low expense ratios. Index funds and Exchange Traded Funds (ETFs) generally have lower expense ratios than actively managed funds.you can see 12 Low-Cost Index Mutual Funds Previously recommended.
#4 – Consider Fund Manager Experience and Track Record
A fund manager’s experience and track record are good indicators of the fund’s future performance potential. Investors should therefore consider the investment style, experience, and performance history of the fund manager before investing.
#5 – Diversify Your Portfolio
It is important to diversify your portfolio across different asset classes and mutual funds. This reduces risk and increases long-term return potential.
ChatGPT Recommended List Mutual funds to invest in 2023
Here is the list of Mutual Funds recommended by ChatGPT for investing in India in 2023. (See screenshot).
Best Mutual Funds to Invest in 2023 by ChatGPT AI – Performance and Our Views
1) HDFC Top 100 Fund
This is a large mutual fund. It is currently 94% invested in large caps and 6% in mid caps.
This mutual fund was launched 26 years ago and has generated an annualized return of 19% since inception (direct plan).
From an annualized return perspective, the fund has generated 13% annualized returns over the last 10 years and 11% annualized returns over the last 1 and 5 years.
From a SIP return perspective, it has generated annual returns of 13% to 15% over the last 5 to 10 years.
We have recommended this fund several times before and it is one of the best mutual funds to invest in 2023 with a consistent track record. If you are a moderate risk investor and intend to invest for more than 5 years, you can invest in such funds.
2) Axis Blue Chip Fund
This is a large mutual fund. We are currently 99.2% invested in large caps and a portion in mid caps.
The mutual fund has generated an annualized return of 14.2% since the direct plan’s inception.
From an annualized return perspective, the fund has generated returns of 14% annualized over the past 10 years, 11.6% annualized over the past 5 years, and 0.8% over the past year.
From a SIP return perspective, it has generated 10% to 13% annualized returns over the last 5 to 10 years.
Axis Mutual Fund underperformed after a fraud preceded by some fund managers. Axis Mutual Fund is one of the worst performing mutual funds Compared to other peers in all segments.
ChatGPT may not have considered the latest facts, so I am personally neutral about such funds. Yes, my opinion may change in the future once things stabilize.
3) SBI Small Cap Fund
This is a small cap mutual fund. It is currently 62% invested in mid-cap and 38% in small-cap.
This mutual fund was launched 14 years ago and has generated a 25% annualized return (direct plan) since inception.
From an annualized return perspective, the fund has generated returns of 26% annualized over the past 10 years, 15% annualized over the past 5 years, and 9% over the past year.
From a SIP return perspective, it has generated annualized returns of 23% to 23.5% over the past 5 to 10 years.
We also recommended this as one of the Best mutual funds to invest in the small cap segment in 2023 Several times on this blog I advised my son, who started his career a year ago, to invest in this fund. If you are a high risk investor and are willing to invest for 8 to 10 years or longer, you can invest in such funds.
4) Mirae Asset Emerging Bluechip Fund
This is a large and mid cap mutual fund. We currently invest 55% in large caps, 41% in mid caps and 4% in small caps.
The mutual fund was launched 12.5 years ago and has generated an annualized return (direct plan) of 21.6% since inception.
From an annualized return perspective, the fund has generated returns of 23% annualized over the past 10 years, 15% annualized over the past 5 years, and 3% over the past year.
From a SIP return perspective, it has produced annual returns of 17% to 19.5% over the past 5 to 10 years.
We also recommended this as one of the Best large and mid cap mutual funds to invest in If you are a high risk investor and willing to invest for more than 5 years, you can invest in such funds.
5) Aditya Birla Sun Life Frontline Equity Fund
This is a large mutual fund. It is currently 94% invested in large caps and 6% in mid caps.
The mutual fund was launched 20 years ago and has generated an annualized return of 14% since its direct plan inception.
From an annualized return perspective, the fund has generated returns of 14% annualized over the past 10 years, 10% annualized over the past 5 years, and 6% over the past year.
From a SIP return perspective, they have generated 12% to 13% annualized returns over the last 5 to 10 years.
Having recommended this fund several times before, we can consider it from the large cap category as one of the best mutual funds to invest in 2023. If you are a moderate risk investor and intend to invest for more than 5 years, you can invest in such funds.
Can ChatGPT modify the list of recommended mutual funds?
no one knows
Crisil recommends mutual funds and ratings may change from time to time. Value Research evaluates mutual funds, which change on a quarterly basis. With hundreds of mutual funds and hundreds of good performers, it is difficult to evaluate only 5 or 10 funds. We also continue to recommend 5-10 funds from various categories of mutual funds on our blog.However, some of them might look like Worst performing mutual fund later.
Can I rely solely on ChagGPT for mutual fund advice?Can I also invest in mutual funds recommended on this blog? The answer is no. ChatGPT or this blog provide initial guidance, but you should analyze and invest in mutual funds based on your risk appetite, investment horizon and financial goals.
Did you like our tips and analysis? Then share it on Facebook, Twitter, Telegram and other social media so your friends might find it useful too.
Suresh KP is the founder of Myinvestmentideas. He is his NISM Certified – Investment Advisor and NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years.
