The below table shows a list Of the Best Mutual funds for Lump Sum Investment For Short Term based on AUM, NAV, and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| ICICI Pru Short Term Fund | 19,746.04 | 61.76 | 1,000 |
| SBI Short Term Debt Fund | 13,192.63 | 32.13 | 1,000 |
| Axis Short Duration Fund | 9,341.54 | 31.68 | 1,000 |
| Bandhan Bond Fund – Short Term Plan | 9,328.91 | 57.58 | 100 |
| Aditya Birla SL Short Term Fund | 8,759.95 | 48.46 | 1,000 |
| HSBC Short Duration Fund | 3,783.16 | 26.43 | 500 |
| Tata ST Bond Fund | 2,836.35 | 49.98 | 150 |
| Invesco India Short Duration Fund | 426.38 | 3,707.40 | 1,000 |
| Mirae Asset Short Duration Fund | 341.86 | 15.7 | 99 |
| Canara Rob Short Duration Fund | 340.5 | 26.19 | 1,000 |
Table of Contents
Introduction To Top Mutual Funds for Lump Sum Investment For Short Term
ICICI Pru Short Term Fund
ICICI Pru Short Term Fund, launched by ICICI Prudential Asset Management Company Limited, focuses on short-duration fixed-income securities to provide moderate returns with lower risk. It aims to offer liquidity while preserving capital, making it suitable for conservative investors.
AUM: ₹19,746.04 Crore
NAV: ₹61.76
Minimum SIP: ₹1,000
Exit Load: 0%
Expense Ratio: 0.45%
1-Y Return: 8.71%
5-Y CAGR: 7.06%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹5,000.00
SBI Short Term Debt Fund
SBI Short Term Debt Fund, managed by SBI Funds Management Limited, invests primarily in short-term debt instruments, aiming for capital preservation and steady income. Established to cater to conservative investors, it provides liquidity and moderate returns in a low-risk environment.
AUM: ₹13,192.63 Crore
NAV: ₹32.13
Minimum SIP: ₹1,000
Exit Load: 0%
Expense Ratio: 0.35%
1-Y Return: 8.43%
5-Y CAGR: 6.20%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹5,000.00
Axis Short Duration Fund
Axis Short Duration Fund, offered by Axis Asset Management Company Ltd., is designed to invest in short-duration debt and money market instruments. This fund aims to provide reasonable returns while maintaining liquidity, catering to risk-averse investors seeking stability.
AUM: ₹9,341.54 Crore
NAV: ₹31.68
Minimum SIP: ₹1,000
Exit Load: 0%
Expense Ratio: 0.36%
1-Y Return: 8.84%
5-Y CAGR: 6.51%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹5,000.00
Bandhan Bond Fund – Short Term Plan
Bandhan Bond Fund – Short Term Plan, managed by Bandhan AMC Limited, focuses on investing in short-term debt securities to deliver reasonable returns with lower risk. It is tailored for investors looking for a stable income stream and capital protection.
AUM: ₹9,328.91 Crore
NAV: ₹57.58
Minimum SIP: ₹100
Exit Load: 0%
Expense Ratio: 0.33%
1-Y Return: 8.93%
5-Y CAGR: 6.10%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹1,000.00
Aditya Birla SL Short Term Fund
Aditya Birla SL Short Term Fund, managed by Aditya Birla Sun Life AMC Limited, invests in short-duration fixed-income securities. Launched to provide moderate returns and liquidity, it caters to conservative investors seeking to preserve capital while earning interest income.
AUM: ₹8,759.95 Crore
NAV: ₹48.46
Minimum SIP: ₹1,000
Exit Load: 0%
Expense Ratio: 0.38%
1-Y Return: 8.94%
5-Y CAGR: 6.78%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹1,000.00
HSBC Short Duration Fund
HSBC Short Duration Fund, offered by HSBC Global Asset Management (India) Private Limited, primarily invests in short-duration debt instruments. The fund aims to provide capital protection and steady income, catering to risk-averse investors looking for liquidity and stability.
AUM: ₹3,783.16 Crore
NAV: ₹26.43
Minimum SIP: ₹500
Exit Load: 0%
Expense Ratio: 0.27%
1-Y Return: 8.48%
5-Y CAGR: 5.86%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹5,000.00
Tata ST Bond Fund
Tata ST Bond Fund, managed by Tata Asset Management Private Limited, focuses on investing in short-duration debt securities to provide moderate returns with lower risk. It is designed for investors seeking capital preservation and stable income in a conservative investment approach.
AUM: ₹2,836.35 Crore
NAV: ₹49.98
Minimum SIP: ₹150
Exit Load: 0%
Expense Ratio: 0.36%
1-Y Return: 8.64%
5-Y CAGR: 6.29%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹5,000.00
Invesco India Short Duration Fund
Invesco India Short Duration Fund, offered by Invesco Asset Management Company Pvt Ltd., invests primarily in short-term debt and money market instruments. The fund aims to deliver moderate returns while ensuring capital safety, catering to conservative investors seeking liquidity.
AUM: ₹426.38 Crore
NAV: ₹3,707.40
Minimum SIP: ₹1,000
Exit Load: 0%
Expense Ratio: 0.35%
1-Y Return: 8.56%
5-Y CAGR: 5.97%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹1,000.00
Mirae Asset Short Duration Fund
Mirae Asset Short Duration Fund, managed by Mirae Asset Investment Managers (India) Private Limited, focuses on short-duration fixed-income securities to provide stable returns. Designed for risk-averse investors, it aims to ensure capital preservation while offering liquidity and reasonable income.
AUM: ₹341.86 Crore
NAV: ₹15.70
Minimum SIP: ₹99
Exit Load: 0%
Expense Ratio: 0.29%
1-Y Return: 8.69%
5-Y CAGR: 6.27%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹5,000.00
Canara Rob Short Duration Fund
Canara Rob Short Duration Fund, managed by Canara Robeco Asset Management Company Limited, invests in short-duration debt instruments to deliver moderate returns with lower risk. It caters to conservative investors looking for capital preservation while ensuring liquidity in their investments.
AUM: ₹340.50 Crore
NAV: ₹26.19
Minimum SIP: ₹1,000
Exit Load: 0%
Expense Ratio: 0.41%
1-Y Return: 8.08%
5-Y CAGR: 5.82%
SEBI Risk Category: Moderate
Minimum Lumpsum Investment: ₹5,000.00
What is Lump Sum Investment?
A lump sum investment is when an investor puts a large amount of money into a financial asset all at once, instead of spreading it out over time. This strategy is often used by people who have a significant amount of capital they want to invest in one go, like savings or a bonus.
By investing a lump sum, the investor’s entire capital is subject to market conditions from the start, which can lead to significant returns if the market performs well. However, it also means taking on greater risk since the full amount is immediately exposed to potential market fluctuations.
Lump sum investments are common in mutual funds, stocks, and fixed deposits and are often chosen by those aiming to meet specific financial goals within a certain time frame. This method is suitable for investors who can handle short-term market ups and downs in pursuit of potential long-term gains.
Features Of Best Mutual Funds For Lump Sum Investment For Short Term
The main features of the best mutual funds for short-term lump sum investments include low risk, quick liquidity, stable returns, and investment in debt or liquid funds to avoid market volatility and protect the investor’s capital over a brief period.
- Low Risk: Short-term mutual funds focus on low-risk investments, typically in debt securities. This strategy helps minimize market exposure, making these funds suitable for investors seeking stable returns with limited risk.
- High Liquidity: These funds offer easy access to funds, often allowing withdrawals within a few days. This high liquidity is ideal for investors needing flexible access to their investments without long-term commitments.
- Stable Returns: Short-term mutual funds prioritize capital preservation, providing stable returns through bonds and money market instruments. The emphasis on stability makes these funds attractive for lump-sum investments.
- Market Volatility Protection: By investing in debt instruments, short-term funds reduce exposure to market volatility, safeguarding the invested capital. This feature appeals to investors aiming to minimize risks associated with unpredictable market conditions.
Top Mutual Funds For Lump Sum Investment For Short Term Based on Expense Ratio
The table below shows the Top Mutual Fund For Lump Sum Investment For Short Term Based on the highest to lowest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| ICICI Pru Short Term Fund | 0.45 | 1,000 |
| Canara Rob Short Duration Fund | 0.41 | 1,000 |
| Aditya Birla SL Short Term Fund | 0.38 | 1,000 |
| Axis Short Duration Fund | 0.36 | 1,000 |
| Tata ST Bond Fund | 0.36 | 150 |
| SBI Short Term Debt Fund | 0.35 | 1,000 |
| Invesco India Short Duration Fund | 0.35 | 1,000 |
| Bandhan Bond Fund – Short Term Plan | 0.33 | 100 |
| Mirae Asset Short Duration Fund | 0.29 | 99 |
| HSBC Short Duration Fund | 0.27 | 500 |
Lump Sum Investment For Short Term In Mutual Fund Based on 3Y CAGR
The table below shows the Top top-performing Mutual Fund For Lump Sum Investment For Short Term Based on the Highest 3Y CAGR.
| Name | CAGR 3Y (%) | Minimum SIP (Rs) |
| ICICI Pru Short Term Fund | 7.06 | 1,000 |
| Aditya Birla SL Short Term Fund | 6.78 | 1,000 |
| Axis Short Duration Fund | 6.51 | 1,000 |
| Tata ST Bond Fund | 6.29 | 150 |
| Mirae Asset Short Duration Fund | 6.27 | 99 |
| SBI Short Term Debt Fund | 6.2 | 1,000 |
| Bandhan Bond Fund – Short Term Plan | 6.1 | 100 |
| Invesco India Short Duration Fund | 5.97 | 1,000 |
| HSBC Short Duration Fund | 5.86 | 500 |
| Canara Rob Short Duration Fund | 5.82 | 1,000 |
Top Mutual Funds For Lump Sum Investment For Short Term Based on Exit Load
The table below shows the Best Mutual Fund For Lump Sum Investment For Short Term Based on Exit Load, i.e., the fee the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| Aditya Birla SL Short Term Fund | Aditya Birla Sun Life AMC Limited | 0 |
| Axis Short Duration Fund | Axis Asset Management Company Ltd. | 0 |
| Bandhan Bond Fund – Short Term Plan | Bandhan AMC Limited | 0 |
| Canara Rob Short Duration Fund | Canara Robeco Asset Management Company Limited | 0 |
| HSBC Short Duration Fund | HSBC Global Asset Management (India) Private Limited | 0 |
| ICICI Pru Short Term Fund | ICICI Prudential Asset Management Company Limited | 0 |
| Invesco India Short Duration Fund | Invesco Asset Management Company Pvt Ltd. | 0 |
| Mirae Asset Short Duration Fund | Mirae Asset Investment Managers (India) Private Limited | 0 |
| SBI Short Term Debt Fund | SBI Funds Management Limited | 0 |
| Tata ST Bond Fund | Tata Asset Management Private Limited | 0 |
Historical Performance of Mutual Funds for Lump Sum Investment For Short-Term
The table below shows the top 10 Mutual Fund For Lump Sum Investment For Short Term to invest in India based on a 5Y return.
| Name | CAGR 5Y (Cr) | Minimum SIP (Rs) |
| ICICI Pru Short Term Fund | 7.66 | 1,000 |
| Aditya Birla SL Short Term Fund | 7.34 | 1,000 |
| Axis Short Duration Fund | 7.08 | 1,000 |
| Tata ST Bond Fund | 6.77 | 150 |
| SBI Short Term Debt Fund | 6.6 | 1,000 |
| Bandhan Bond Fund – Short Term Plan | 6.59 | 100 |
| Mirae Asset Short Duration Fund | 6.56 | 99 |
| Invesco India Short Duration Fund | 6.46 | 1,000 |
| HSBC Short Duration Fund | 6.37 | 500 |
| Canara Rob Short Duration Fund | 6.23 | 1,000 |
Factors To Consider When Investing In Mutual Funds for Lump Sum Investment For Short Term
The main factors to consider when investing in mutual funds for short-term lump sum investments include risk tolerance, investment horizon, fund performance, and expense ratio. These factors help investors choose funds that balance growth potential with capital preservation over a short period.
- Risk Tolerance: Assessing your comfort with risk is crucial, as short-term funds vary in risk levels. Opt for low-risk funds, like debt or liquid funds, if stability and capital preservation are your primary goals.
- Investment Horizon: Consider your investment duration, usually one to three years for short-term goals. Choosing funds suited to this timeframe helps ensure returns align with your needs while managing market risks.
- Fund Performance: Review the fund’s past performance, especially in volatile markets. While past returns don’t guarantee future results, consistent performance in similar funds can indicate potential stability and reliability.
- Expense Ratio: The fund’s expense ratio, or management fees, directly impacts returns. Opt for funds with lower expense ratios to maximize potential gains, as these costs accumulate over time and can reduce overall profitability.
How To Invest In Mutual Funds for Lump Sum Investment?
Listed below are the steps for investing in the best Mutual Fund For Lump Sum Investment For Short Term:
- Research and find out the top-performing funds in the market.
- Evaluate and assess your risk appetite and fix your financial goals.
- Shortlist the funds based on your fundamental and technical analysis.
- Find reliable stockbrokers like Alice Blue to open a demat account.
- Invest in the shortlisted funds and monitor them regularly.
Impact of Government Policies on Mutual Funds for Lump Sum Investment For Short-Term
Government policies significantly influence short-term mutual funds for lump sum investments by altering interest rates, tax regulations, and economic stability. For instance, rate changes by central banks can affect bond yields, impacting returns on debt-based short-term funds.
Tax policies also shape returns on short-term mutual funds, as capital gains tax rates and exemptions vary. Favorable tax incentives can boost investor interest, while tighter regulations may reduce fund appeal. Understanding these policies helps investors optimize returns.
How Mutual Funds for Lump Sum Investment For Short Term Perform in Economic Downturns?
During economic downturns, short-term mutual funds often perform more stably than equity funds, as they focus on low-risk debt instruments. By investing in government bonds and money market securities, they tend to protect capital even in uncertain economic conditions.
However, returns may still decline as central banks lower interest rates to stimulate the economy. Reduced yields on debt securities can impact fund performance, making returns less attractive. Nonetheless, these funds remain a safer option for conservative investors during downturns.
Advantages Of Investing In Mutual Funds for Lump Sum Investment For Short Term?
The main advantages of investing in mutual funds for short-term lump sum investments include liquidity, capital preservation, steady returns, and professional management. These benefits make short-term mutual funds a preferred choice for investors seeking quick access to funds with minimized risk.
- Liquidity: Short-term mutual funds offer high liquidity, allowing investors to withdraw funds quickly, often within a day or two. This flexibility is ideal for those needing fast access to their capital without lengthy commitments.
- Capital Preservation: These funds focus on low-risk investments like debt securities, aiming to preserve capital. This makes them suitable for conservative investors who prioritize safeguarding their principal over high returns.
- Steady Returns: Short-term mutual funds are designed to offer stable, predictable returns, even during market fluctuations. This stability is achieved by investing in fixed-income securities, providing a reliable income stream.
- Professional Management: Managed by experts, these funds benefit from professional insights and strategies, ensuring effective risk management and optimization of returns. Investors gain from skilled management without needing to actively monitor the market.
Risks Of Investing In Mutual Funds for Lump Sum Investment For Short Term?
The main risks of investing in mutual funds for short-term lump sum investments include interest rate risk, credit risk, inflation risk, and liquidity risk. These factors can affect returns, capital preservation, and the overall security of short-term investments.
- Interest Rate Risk: Short-term funds are sensitive to interest rate changes. When rates increase, bond prices often fall, which can reduce returns. This risk impacts debt-based funds and may result in lower-than-expected gains for investors.
- Credit Risk: Some short-term funds invest in corporate bonds, which carry credit risk. If the issuer defaults, the fund’s returns could suffer. Choosing funds with high-quality credit ratings can help mitigate this risk.
- Inflation Risk: Short-term returns may not always keep up with inflation, reducing purchasing power over time. This risk is significant for conservative funds, which may provide stability but limited real growth in high inflation periods.
- Liquidity Risk: In certain market conditions, redeeming investments can be challenging, impacting the fund’s liquidity. This risk is lower in highly liquid funds but still present in funds with less accessible or lower-traded assets.
Mutual Fund GDP Contribution
Mutual funds play a significant role in contributing to a country’s GDP by mobilizing savings from individuals and institutional investors. These funds channel investments into various sectors of the economy, facilitating capital formation and promoting overall economic growth through increased liquidity and investment.
Additionally, mutual funds enhance market participation by providing access to diverse investment opportunities. This increased participation can lead to improved market efficiency and stability, ultimately contributing to the GDP by fostering business expansion and creating job opportunities across multiple industries.
Who Should Invest in Mutual Funds for Lump Sum Investment For Short Term?
Investors looking for capital preservation with moderate returns should consider mutual funds for short-term lump-sum investments. This option is suitable for individuals with a lump sum of money, such as bonuses or inheritances, who seek quick access to their funds.
Additionally, conservative investors who prioritize liquidity and low risk may find short-term mutual funds appealing. Those with short-term financial goals, such as saving for a down payment or planning a vacation, can benefit from the stable returns these funds provide while maintaining easy access to their capital.
Taxability on Mutual Funds for Lumpsum Investments
The taxability of mutual funds for lump sum investments depends on the type of fund and the duration of the investment. For equity mutual funds, gains are taxed at 15% for holdings less than one year, while long-term capital gains above ₹1 lakh are taxed at 10%.
In the case of debt mutual funds, short-term capital gains are added to the investor’s income and taxed according to their income tax slab. Long-term capital gains, applicable after three years, are taxed at 20% with indexation benefits, helping investors mitigate tax liability.
Best Mutual Funds for Lump Sum Investment For Short Term – FAQs
A lump sum investment involves placing a large amount of money into a financial asset all at once, rather than spreading the investment over time. This approach aims to maximize potential returns by leveraging market conditions immediately, often used in mutual funds or stocks.
Top Mutual Fund For Lump Sum Investment For Short Term #1: ICICI Pru Short Term Fund
Top Mutual Fund For Lump Sum Investment For Short Term #2: SBI Short Term Debt Fund
Top Mutual Fund For Lump Sum Investment For Short Term #3: Axis Short Duration Fund
Top Mutual Fund For Lump Sum Investment For Short Term #4: Bandhan Bond Fund – Short Term Plan
Top Mutual Fund For Lump Sum Investment For Short Term #5: Aditya Birla SL Short Term Fund
These funds are listed based on the Highest AUM.
The Best Mutual funds for Lump Sum Investment For Short Term in India based on expense ratio include ICICI Pru Short Term Fund, Canara Rob Short Duration Fund, Aditya Birla SL Short Term Fund, Axis Short Duration Fund, and Tata ST Bond Fund.
Investing in mutual funds for short-term lump sum investments is generally safe, particularly in low-risk funds like debt or liquid funds. However, market fluctuations can affect returns, so it’s essential to assess risk tolerance and choose funds wisely to ensure capital preservation.
Yes, you can invest in a mutual fund for three months, especially in liquid or short-term debt funds. These options are designed for brief investment horizons, providing liquidity and relatively stable returns, making them suitable for short-term financial goals.
To invest in mutual funds for short-term lump sum investments, choose a suitable fund based on your risk tolerance, create an account on a brokerage platform like Alice Blue, and execute the investment by selecting the desired fund and amount.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
