Investing a lump sum of money in mutual funds can be a powerful strategy for growing wealth over time. Whether you’ve received a windfall, such as an inheritance or a bonus, or simply have a large sum of money sitting idle, lump sum investments offer the potential for significant returns when chosen wisely. However, selecting the right mutual funds for a lump sum investment in 2025 requires careful consideration of the current market conditions, your financial goals, and your risk tolerance. In this blog, we’ll explore some of the best mutual funds for lump-sum investments in 2025.
Best Mutual Funds For Lumpsum Investments in April 2025
Name | AUM (₹ Crore) | CAGR 3Y (%) | Tracking Error |
ICICI Pru Infrastructure Fund | 6,886.49 | 28.85 | 9.96 |
Motilal Oswal Midcap Fund | 23,703.68 | 28.16 | 9.49 |
Nippon India Power & Infra Fund | 6,125.29 | 28.15 | 7.60 |
Franklin India Opportunities Fund | 5,517.19 | 27.25 | 5.96 |
Bandhan Small Cap Fund | 8,474.84 | 25.34 | 4.20 |
Note: The above-mentioned scheme has been selected and sorted based on 3Y CAGR as of April 2, 2025
Overview of Best Mutual Funds For Lumpsum Investments
1. ICICI Pru Infrastructure Fund
The ICICI Prudential Infrastructure Fund is an open-ended equity mutual fund by ICICI Prudential Mutual Fund. The investment objective of the scheme is to achieve capital appreciation by investing in a well-diversified basket of equity for companies conducting business in the development and infrastructure sector.
Key Metrics
- NAV: 177.43
- Expense Ratio: 1.16
2. Motilal Oswal Midcap Fund
The Motilal Oswal Midcap Fund is an open-ended equity mutual fund by Motilal Oswal Mutual Fund. The investment objective is to achieve long term capital appreciation by investing in quality mid-cap companies having long-term competitive advantages and potential for growth.
Key Metrics
- NAV: 105.81
- Expense Ratio: 0.68
3. Nippon India Power & Infra Fund
Nippon India Power & Infra Fund is an open-ended scheme investing in power & infrastructure sectors. The investment objective is to seek long term capital appreciation by investing in equity/equity related instruments of the companies that are engaged in power and infrastructure space in India.
Key Metrics
- NAV: 315.33
- Expense Ratio: 1.03
4. Franklin India Opportunities Fund
Franklin India Opportunities Fund is an ended equity fund suitable for investors seeking long-term capital appreciation by investing in special situation themes.
Key Metrics
- NAV: 225.51
- Expense Ratio: 0.59
5. Bandhan Small Cap Fund
Bandhan Small Cap Fund Direct-Growth is an Equity mutual fund scheme from Bandhan Mutual Fund. The fund aims to establish a diverse portfolio of small-cap stocks.
Key Metrics
- NAV: 44.13
- Expense Ratio: 0.46
Things to Keep in Mind Before Investing in Lump-Sum Mutual Funds
- Market Timing Risk: One of the biggest risks of lump sum investing is the difficulty in timing the market. If you invest a large sum when the market is high, you may face short-term losses if the market corrects or declines.
- Investment Horizon: A lump sum investment is typically suited for long-term goals. If you’re investing for a long-term goal (5-10 years or more), a lump sum can be more beneficial, as the market is likely to recover from short-term volatility over time.
- Risk Profile: Assess your risk tolerance. A lump sum investment may expose you to higher short-term volatility if you choose riskier funds (e.g., equity funds). If you are risk-averse, a large investment in equities may not suit you, and you might consider more balanced or debt-oriented funds.
- Asset Allocation: Ensure that your lump sum investment fits into a diversified portfolio. Don’t put all your money into a single type of mutual fund (e.g., only equity funds). A balanced portfolio across equity, debt, and hybrid funds can help reduce risk.
Conclusion
Investing a lump sum amount in mutual funds can be a great way to make your money work harder for you in 2025. By carefully selecting funds that match your risk tolerance and financial goals, you can potentially maximize returns while managing risks.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.