Investing in mutual funds through a lump sum approach involves investing a large amount of money at once, rather than spreading the investment over time through systematic investments. This method is typically preferred by investors who have a significant amount of idle funds—such as proceeds from a bonus, inheritance, or the sale of an asset—and want to put it to work in the market immediately.
Lump sum investing can be an effective strategy, especially in a rising market, as it allows the entire capital to benefit from compounding and market growth from day one. In this blog, we’ll take a closer look at some of the best mutual funds for lump sum investments in August 2025.
| Name | AUM (₹ Cr) | CAGR 3Y (%) |
| SBI PSU Fund | 5,427.44 | 35.10 |
| Bandhan Small Cap Fund | 12,981.57 | 33.74 |
| Aditya Birla SL PSU Equity Fund | 5,687.15 | 32.93 |
| Franklin India Opportunities Fund | 7,199.55 | 32.84 |
| Nippon India Power & Infra Fund | 7,619.74 | 32.51 |
Note: The above-mentioned schemes have been selected based on 3Y CAGR as of July 29, 2025
While lump sum investing in mutual funds can offer the advantage of immediate market exposure and potential for higher returns in a bullish market, it also carries the risk of timing the market poorly. Investors should assess their financial goals, risk tolerance, and market conditions before committing a large sum.
Consulting a financial advisor and considering diversification can further help in optimizing returns and managing risks effectively. Ultimately, the success of lump sum investing lies in careful planning and a disciplined, long-term investment approach.
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.
Published on: Jul 29, 2025, 2:19 PM IST
Sachin Gupta
Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.
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