Best Mutual Fund For Lumpsum Investment

The table below shows the Best Mutual Fund For Lumpsum Investment based on AUM, NAV, and Minimum SIP.

Introduction To Top Mutual Funds for Lumpsum Investment

Parag Parikh Flexi Cap Fund

Parag Parikh Flexi Cap Fund Direct-Growth is a Flexi Cap mutual fund scheme from Ppfas Mutual Fund. This fund has been in existence for 11  years 6 months, having been launched on 13/05/2013.

Parag Parikh Flexi Cap Fund falls under the Flexi Cap Fund category with an AUM of ₹81,918.72 crores, a 5-year CAGR of 26.64%, an exit load of 2%, and an expense ratio of 0.63%. The SEBI risk category is Very High. Its asset allocation includes: 79.51% in Equity, 19.88% in Debt and 0.61% in Other.

HDFC Mid-Cap Opportunities Fund

HDFC Mid-Cap Opportunities Direct Plan-Growth is a Mid Cap mutual fund scheme from Hdfc Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013. 

HDFC Mid-Cap Opportunities Fund falls under the Mid Cap Fund category with an AUM of ₹76,060.89 crores, a 5-year CAGR of 30.75%, an exit load of 1%, and an expense ratio of 0.74%. The SEBI risk category is Very High. Its asset allocation includes: 91.77% in Equity, Nil in Debt and 8.23% in Other.

Nippon India Small Cap Fund

Nippon India Small Cap Fund Direct- Growth is a Small Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013. 

Nippon India Small Cap Fund falls under the Small Cap Fund category with an AUM of ₹61,646.36 crores, a 5-year CAGR of 38.28%, an exit load of 1%, and an expense ratio of 0.68%. The SEBI risk category is Very High. Its asset allocation includes: 95.02% in Equity, Nil in Debt and 4.98% in Other.

Kotak Emerging Equity Fund

Kotak Emerging Equity Fund Direct-Growth is a Mid Cap mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013. 

Kotak Emerging Equity Fund falls under the Mid Cap Fund category with an AUM of ₹50,627.29 crores, a 5-year CAGR of 29.65%, an exit load of 1%, and an expense ratio of 0.36%. The SEBI risk category is Very High. Its asset allocation includes: 96.09% in Equity, 0.21% in Debt and 3.7% in Other.

ICICI Pru Value Discovery Fund

ICICI Prudential Value Discovery Direct-Growth is a Value Oriented mutual fund scheme from Icici Prudential Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013. 

ICICI Pru Value Discovery Fund falls under the Value Fund category with an AUM of ₹49,104.38 crores, a 5-year CAGR of 27.23%, an exit load of 1%, and an expense ratio of 1%. The SEBI risk category is Very High. Its asset allocation includes: 87.89% in Equity, 2.45% in Debt and 9.66% in Other.

SBI Contra Fund

SBI Contra Direct Plan-Growth is a Contra mutual fund scheme from Sbi Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013. 

SBI Contra Fund falls under the Contra Fund category with an AUM of ₹41,906.90 crores, a 5-year CAGR of 31.59%, an exit load of 1%, and an expense ratio of 0.59%. The SEBI risk category is Very High. Its asset allocation includes: 88.89% in Equity, 5.22% in Debt and 5.89% in Other.

Nippon India Multi Cap Fund

Nippon India Multi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013.

Nippon India Multi Cap Fund falls under the Multi Cap Fund category with an AUM of ₹39,000.80 crores, a 5-year CAGR of 26.75%, an exit load of 1%, and an expense ratio of 0.73%. The SEBI risk category is Very High. Its asset allocation includes: 98.8% in Equity, Nil in Debt and 1.2% in Other.

Nippon India Growth Fund

Nippon India Growth Fund Direct- Growth is a Mid Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013. 

Nippon India Growth Fund falls under the Mid Cap Fund category with an AUM of ₹34,583.63 crores, a 5-year CAGR of 31.45%, an exit load of 1%, and an expense ratio of 0.79%. The SEBI risk category is Very High. Its asset allocation includes: 98.08% in Equity, Nil in Debt and 1.92% in Other.

HDFC Small Cap Fund

HDFC Small Cap Fund Direct- Growth is a Small Cap mutual fund scheme from Hdfc Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013.

HDFC Small Cap Fund falls under the Small Cap Fund category with an AUM of ₹33,841.89 crores, a 5-year CAGR of 32.22%, an exit load of 1%, and an expense ratio of 0.68%. The SEBI risk category is Very High. Its asset allocation includes: 93.72% in Equity, Nil in Debt and 6.28% in Other.

SBI Small Cap Fund

SBI Small Cap Fund Direct-Growth is a Small Cap mutual fund scheme from Sbi Mutual Fund. This fund has been in existence for 11  years 11 months, having been launched on 01/01/2013.

SBI Small Cap Fund falls under the Small Cap Fund category with an AUM of ₹33,285.18 crores, a 5-year CAGR of 29.55%, an exit load of 1%, and an expense ratio of 0.66%. The SEBI risk category is Very High. Its asset allocation includes: 90.02% in Equity, Nil in Debt and 9.98% in Other.

What is Lumpsum Investment?

A lumpsum investment involves investing a large amount of money at once into a mutual fund, stock, or other financial instrument. This method contrasts with systematic investment plans (SIPs) that involve smaller, regular investments over time.

Lumpsum investments are ideal for investors with a significant amount of capital who seek to grow their wealth over a set period. The returns depend on market conditions and the performance of the chosen investment instrument.

Features Of Best Mutual Funds For Lumpsum Investment

The main features of the best mutual funds for lumpsum investment include high growth potential, professional management, diversified portfolios, and liquidity. These features ensure a balanced approach to maximizing returns while managing risk.

• High Growth Potential: The best funds often provide substantial long-term growth through equity investments, ideal for lumpsum investments that capitalize on market trends.

• Professional Management: Mutual funds are managed by experienced professionals who make informed decisions to optimize portfolio performance based on market analysis.

• Diversified Portfolios: These funds invest across various sectors and assets, minimizing risk while offering exposure to different opportunities for growth.

• Liquidity: Investors can redeem their investments as needed, allowing for flexibility while maintaining access to their funds during emergencies.

Top Mutual Funds For Lumpsum Investment Based on Expense Ratio

The table below shows the Top Mutual Funds For Lumpsum Investment Based on Expense Ratio and Minimum SIP.

Lumpsum Investment In Mutual Fund Based on 3Y CAGR

The table below shows Lumpsum Investment In Mutual Fund Based on 3Y CAGR and Minimum SIP.   

Top Performing Mutual Funds For Lumpsum Investment Based on Exit Load

The table below shows Top Performing Mutual Funds For Lumpsum Investment Based on Exit Load and AMC.

High Dividend Yield Mutual Funds for Lumpsum Investment In India

The table below shows High Dividend Yield Mutual Funds for Lumpsum Investment In India based on CAGR 1Y.

Historical Performance of Mutual Funds for Lumpsum Investment

The table below shows the Historical Performance of Mutual Funds for Lumpsum Investment based on CAGR 5Y.

Factors To Consider When Investing In Mutual Funds for Lumpsum Investment

The main factors to consider when investing in Mutual Funds for Lumpsum Investment

include market timing, risk appetite, fund performance, and investment horizon. Considering these factors ensures informed decisions when choosing mutual funds for a lumpsum investment.

• Market Timing: Invest when the market is favorable, as lumpsum investments are sensitive to market fluctuations. A well-timed investment can enhance returns.

• Risk Appetite: Assess your risk tolerance, as equity-focused funds offer higher returns but come with increased risk, while debt funds provide more stability.

• Fund Performance: Analyze the historical performance of the fund, focusing on its returns over different market cycles to ensure consistent results.

• Investment Horizon: Longer investment periods usually yield better results in lumpsum investments, allowing time to ride out market volatility and maximize growth potential.

How To Invest In Mutual Funds for Lumpsum Investment?

To invest in mutual funds for a lumpsum investment, choose a mutual fund based on your financial goals, complete the KYC process, and deposit your lumpsum amount through Alice Blue as a broker or directly via the mutual fund’s website.

Impact of Government Policies on Mutual Funds for Lumpsum Investment

Government policies on taxation, capital gains, and sector-specific regulations can influence mutual fund performance. Favorable policies, such as lower taxes or incentives for specific sectors, can improve fund returns, making lumpsum investments more lucrative.

Monetary policies, such as changes in interest rates or liquidity measures, also affect market conditions and, by extension, mutual fund performance. Interest rate hikes may reduce equity fund returns, while lower rates might boost long-term growth potential.

How Mutual Funds for Lumpsum Investment Perform in Economic Downturns?

During economic downturns, lumpsum investments in equity funds may experience significant volatility, leading to temporary declines in portfolio value. However, long-term investors often recover as markets stabilize over time.

Debt-based mutual funds, on the other hand, tend to perform better during downturns, offering more stable returns. Diversifying your lumpsum investment across asset classes can help mitigate the effects of economic slowdowns.

Advantages Of Investing In Mutual Funds for Lumpsum Investment?

The main advantages of investing in mutual funds for lumpsum investment include the potential for higher returns, professional fund management, diversification, and flexibility. These features provide a balanced approach for investors seeking growth with relatively lower involvement in day-to-day investment decisions.

• Higher Returns: Lumpsum investments have the potential for higher returns, especially when invested in equity mutual funds during favorable market conditions.

• Professional Management: Your investments are managed by experts who optimize portfolio performance, ensuring your capital is allocated effectively based on market trends.

• Diversification: Mutual funds spread your investment across various sectors, minimizing risk while maximizing the opportunity for returns.

• Flexibility: Mutual funds allow you to access your money through partial or full redemptions, providing liquidity while maintaining long-term growth.

Risks Of Investing In Mutual Funds for Lumpsum Investment?

The main risks of investing in mutual funds for Lumpsum Investment include market volatility, interest rate fluctuations, liquidity risk, and timing risk. These risks may affect the performance of your lumpsum investment, especially if market conditions are unfavorable during your investment period.

• Market Volatility: Lumpsum investments are exposed to market fluctuations, and a downturn can significantly impact returns, especially in the short term.

• Interest Rate Fluctuations: Changes in interest rates can affect debt mutual funds, as rising rates may decrease the value of bonds held by the fund.

• Liquidity Risk: Some mutual funds, especially in illiquid sectors, may not allow immediate access to funds, limiting flexibility during market downturns.

• Timing Risk: Poor timing when investing a large sum during market highs can result in lower returns or losses, especially in equity mutual funds.

Mutual Fund GDP Contribution

Mutual funds contribute to GDP growth by mobilizing savings and directing them into productive sectors of the economy. As mutual funds invest in a range of industries, they help fuel economic expansion and development through increased capital flows.

By channeling retail and institutional investments into capital markets, mutual funds support businesses in raising funds for expansion. This enhances overall economic output and increases investor participation in the country’s financial ecosystem.

Who Should Invest in Mutual Funds for Lumpsum Investment?

Investors with significant capital and a longer investment horizon should consider lumpsum investments in mutual funds. It is suitable for those looking to grow wealth over time, benefiting from market appreciation.

Additionally, investors seeking professional management of their funds without the need for frequent intervention should invest in mutual funds. Lumpsum investments provide an opportunity to deploy capital strategically in market cycles.

Best Mutual Funds for Lumpsum Investment – FAQs  

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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.