Best Mutual Funds for Lumpsum Investment for May 2025 - SBI PSU & Invesco India PSU Equity & More

Investing a substantial amount in one go calls for thoughtful planning and strategy. Unlike SIPs that spread investments over time, lump sum investments involve deploying the entire amount at once. This approach requires careful timing and fund selection, as market conditions can have a more immediate impact. In this article, find the best mutual funds for lumpsum investments in May 2025 based on 3y CAGR and other parameters.  

Best Mutual Funds for Lumpsum Investments in May 2025 – 3Y CAGR Basis 

Note: The best mutual fund for lumpsum investments listed here is as of May 8, 2025. The funds are sorted based on their 3y CAGR.  

Overview of Mutual Funds for Lumpsum Investments in May 2025 

1. Mirae Asset NYSE FANG+ETF FoF   

Managed by Mirae Asset Mutual Fund, this fund was launched on May 10, 2021. It invests in the Mirae Asset NYSE FANG+ ETF, offering Indian investors access to a concentrated portfolio of ten high-growth U.S. technology and tech-enabled companies. The latest NAV stands at ₹25.838 (as of May 7, 2025). The fund tracks the NYSE FANG+ Total Return Index and requires a minimum investment of ₹500. 

2. Franklin India Opportunities Fund  

Offered by Franklin Templeton Mutual Fund, this scheme was launched on February 21, 2000. The fund focuses on companies with unique or special situation opportunities, such as those undergoing structural changes, policy advantages, or industry shifts. As of May 7, 2025, the NAV is ₹237.809. It benchmarks itself against the NIFTY 500 TRI and accepts a minimum investment of ₹5,000. 

3. SBI PSU Fund  

This thematic equity fund is from SBI Mutual Fund and focuses on Public Sector Undertakings (PSUs). Launched on July 7, 2010, it seeks long-term capital appreciation through investments in equity and equity-related instruments of PSU companies. The fund’s benchmark is the BSE PSU TRI. Its latest NAV is ₹30.47 (as of May 7, 2025), and the minimum investment is ₹5,000. 

4. Invesco India PSU Equity Fund  

Launched on November 18, 2009, by Invesco Mutual Fund, this scheme also focuses on public sector enterprises across various sectors. The fund aims to benefit from potential reforms and growth in PSUs. As of May 7, 2025, its NAV stands at ₹59.16. It tracks the BSE PSU TRI and requires a minimum investment of ₹1,000. 

5. HDFC Infrastructure Fund 

HDFC Infrastructure Fund is offered by HDFC Mutual Fund and was launched on January 1, 2013. The fund currently has a NAV of ₹49.12 as of May 7, 2025. It is benchmarked against the BSE India Infrastructure Total Return Index, reflecting its focus on the infrastructure sector. Investors can start with a minimum investment of ₹100. 

 Best Mutual Funds for Lumpsum Investments in May 2025 – 5Y CAGR Basis 

Note: The best mutual fund for lumpsum investments listed here is as of May 8, 2025. The funds are sorted based on their 5y CAGR.   

Best Mutual Funds for Lumpsum Investments in May 2025 – Absolute Returns 1Y Basis 

Note: The best mutual fund for lumpsum investments listed here is as of May 8, 2025. The funds are sorted based on their Absolute Returns 1Y.   

Also Read: Best Mutual Fund SIP Plan for May 2025: Motilal Oswal Midcap, ICIC Prud and More! 

Pros of Lumpsum Investment in Mutual Funds 

• Simplicity: It's a one-time transaction, requiring less monitoring compared to a Systematic Investment Plan (SIP).
• For Large Sums: Suitable when you receive a windfall, bonus, or have idle cash to invest for the long term. 

Cons of Lumpsum Investment in Mutual Funds 

• Market Timing Risk: If markets fall soon after the investment, it can lead to significant short-term losses.
• Emotional Stress: A large single investment in volatile markets can cause anxiety and lead to premature withdrawal.
• Not Suitable for All: It requires a high-risk tolerance and is less ideal for conservative investors.
• Lower Cost Averaging: Unlike SIPs, lump sum investments miss the benefit of buying more units during market dips. 

Conclusion 

Lump sum investments can deliver returns when backed by strategic fund selection and market timing. The funds listed above offer diverse options based on growth, sector themes, and time horizons. 

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. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.