Investing a lump sum amount in mutual funds can be an effective way to build long-term wealth, especially when aligned with one’s financial goals and risk tolerance. Unlike SIPs, which spread investments over time, lump-sum investing exposes the entire capital to the market at once, making the choice of fund category and quality of fund management crucial.
Selecting the right type of mutual fund helps balance growth potential with stability, ensuring that your money is both protected and positioned for meaningful appreciation. In this read, we’ll take a closer look at some of the best mutual funds for lump sum investments in December 2025.
| Name | AUM (₹ Crore) | CAGR 3Y (%) |
| Bandhan Small Cap Fund | 17,380.29 | 32.10 |
| Invesco India Midcap Fund | 9,319.87 | 29.36 |
| WOC Mid Cap Fund | 3,731.43 | 27.85 |
| Motilal Oswal Midcap Fund | 37,500.86 | 27.68 |
| ITI Small Cap Fund | 2,835.18 | 27.55 |
Note: The above-mentioned schemes have been selected based on 3Y CAGR as of July 29, 2025
| Name | AUM (₹ Crore) | Expense Ratio |
| Franklin India Large & Mid Cap Fund | 3,687.53 | 1.28 |
| Nippon India Vision Large & Mid Cap Fund | 6,690.47 | 1.22 |
| UTI Value Fund | 10,057.81 | 1.18 |
| HSBC Flexi Cap Fund | 5,267.09 | 1.17 |
| HSBC ELSS Tax Saver Fund | 4,214.73 | 1.15 |
Also Read: Best Gold ETFs in India for December 2025: SBI Gold ETF, HDFC Gold ETF, and More
A well-planned lump-sum investment strategy starts with choosing the right mutual fund category that matches your investment horizon and risk capacity. Whether prioritising growth through equity funds, stability through debt funds, or balance through hybrid funds, disciplined allocation helps optimise returns.
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: Nov 28, 2025, 12:35 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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