Thinking of making a lumpsum investment in 2025 prioritizing your long-term goals?
In this blog, we have curated the top five mutual funds where you can invest a sizable amount for the long term.
Benefits of Lumpsum Investment in Mutual Funds
A lumpsum investment in mutual funds means that you invest a large fund, say, INR 1 lakh at a single time in a mutual fund. It helps you gain the advantages:
Power of Compounding
You can benefit from the power of compounding as you remain invested for the long term. The initial amount you invest not only just grows on the principal, but also on the interest it generates over time. This creates a snowball effect, which makes small gains grow into substantial wealth over the years.
Advantage of Market Timing
With lumpsum investments, you enjoy the flexibility to enter the market when conditions look favorable. Market during dips or the phase after a correction is the ideal time to make a lumpsum investment. This strategy positions you to reap higher returns, particularly in sectors poised for growth.
You need to undertand this, before shortlisting the best mutual funds to invest in 2024.
Best Mutual Funds for Lumpsum Investment
Check out the top-performing mutual funds where you can invest a lumpsum amount.
- HDFC Mid-Cap Opportunities Fund
HDFC Mid-Cap Opportunities Fund focuses on emerging sectors while providing a balanced approach to risk and reward. Ideal for long-term investors, it allocates your funds to companies with strong fundamentals.
While 26% of its weightage lies in the financial services sector, it significantly invests in consumer cyclical, healthcare, technology, and industrials.
- NAV: INR 208.9010
- AUM: INR 76,060.90 crore
- Expense Ratio: 0.76 %
- 1-Year Return: 30.15%
- 3-Year Return: 29.40%
- 5-Year Return: 29.64%
- ICICI Prudential Bluechip Fund
Those willing to invest in large-cap equities to grow their wealth would find the ideal option in the ICICI Prudential Bluechip Fund. This fund largely focuses on established and financially sound companies across different sectors.
If you have a conservative approach to investing in the stock market, this mutual fund is well-suited for your financial profile. It provides exposure to industry leaders, particularly in sectors like financial services, industrials, consumer cyclical, technology, and energy.
- NAV: INR 113.5400
- AUM: INR 63,938.00 crore
- Expense Ratio: 0.86 %
- 1-Year Return: 18.75%
- 3-Year Return: 18.31%
- 5-Year Return: 19.18%
- Nippon India Small Cap Fund
If you decide to invest a lumpsum amount seeking aggressive growth, you can consider the Nippon India Small Cap Fund. It helps investors reap the growth potential of budding companies that are ready to expand.
This fund is suitable for investors with a higher risk appetite, focussing on niche players in rapidly growing sectors. The key weightage of this fund lies in industrials (27.95%), followed by financial services, consumer cyclical, and basic materials.
- NAV: INR 193.5219
- AUM: INR 61,646.40 crore
- Expense Ratio: 0.68 %
- 1-Year Return: 27.77%
- 3-Year Return: 28.44%
- 5-Year Return: 36.47%
- SBI Bluechip Fund
Investors who value stability and consistency often go for the SBI Bluechip Fund. It invests in top-tier large-cap stocks to deliver long-term growth on your one-time investment. With this mutual fund, you get diversified exposure to several leading industries, including technology, industrials, healthcare, consumer cyclical, financial services, energy, and real estate.
If you are a conservative investor looking for sustained wealth creation, the SBI Bluechip Fund is for you.
- NAV: INR 96.7641
- AUM: INR 50,502.30 crore
- Expense Ratio: 0.81 %
- 1-Year Return: 14.61%
- 3-Year Return: 14.69%
- 5-Year Return: 17.03%
- Parag Parikh Flexi Cap Fund
The Parag Parikh Flexi Cap Fund is a top choice for investors looking to diversify their portfolios. It strategically allocates your investments across companies in the large, mid, and small-cap sectors.
Balancing growth and risk potential across different sectors and market capitalizations, this mutual fund is designed to help your capital grow over the years.
- NAV: INR 87.6015
- AUM: INR 84,640.60 crore
- Expense Ratio: 0.63 %
- 1-Year Return: 25.06%
- 3-Year Return: 17.77%
- 5-Year Return: 25.73%
Conclusion
A lumpsum investment in the right mutual fund can open your potential to financial success. It’s advisable to invest in funds that match your risk appetite and long-term goals. In this guide, we have listed funds investing in different sectors like small cap, mid cap, and bluechip funds.
Whether you’re building a retirement corpus or simply pursuing the goals of your life, lumpsum investing offers simplicity, growth, and peace of mind.
