Best Mutual Funds for Lump Sum Investments in India for January 2026: Kotak Midcap Fund, Edelweiss Midcap Fund

Written by: Aayushi ChaubeyUpdated on: 4 Jan 2026, 2:30 pm IST

Looking to invest a lump sum in mutual funds? Here’s a curated list of top-performing schemes in India for January 2026, ranked by 3Y CAGR and expense ratio.

Choosing the right mutual fund for a lump sum investment requires a careful balance between historical performance and cost-efficiency. In this guide, we break down the top-performing schemes across various categories: from aggressive mid-cap funds to balanced multi-asset allocations.

Best Mutual Funds for Lump Sum Investments for January 2026: 5Y CAGR Basis

Fund Name	AUM (₹ Cr)	3Y CAGR (%)
Kotak Midcap Fund	60,385.03	22.20
ICICI Pru Dynamic Asset Allocation Active FOF	28,974.11	15.03
Edelweiss Mid Cap Fund	12,646.93	27.25
Nippon India Multi Asset Allocation Fund	9,600.90	22.22
ICICI Pru Nifty Next 50 Index Fund	8,151.03	17.93

Note: The above-mentioned schemes have been selected based on 3Y CAGR as of December 31, 2025.

Overview of Top Mutual Funds for Lump Sum Investments

Kotak Midcap Fund

NAV: ₹156.87
Alpha: 12.91
Tracking Error: 2.65

Edelweiss Mid Cap Fund

NAV: ₹121.67
Alpha: 13.89
Tracking Error: 2.02

Nippon India Multi Asset Allocation Fund

NAV: ₹25.64
Alpha: 10.24
Tracking Error: 3.66

ICICI Pru Nifty Next 50 Index Fund

NAV: ₹63.65
Alpha: 10.03
Tracking Error: 0.06

Best Mutual Funds for Lump Sum Investments for January 2026: Expense Ratio Basis

Name	AUM (₹ Cr)	Expense Ratio (%)
ICICI Pru Dynamic Asset Allocation Active FOF	28,974.11	0.20
Nippon India Multi Asset Allocation Fund	9,600.90	0.27
ICICI Pru Nifty Next 50 Index Fund	8,151.03	0.31
Kotak Midcap Fund	60,385.03	0.37
Edelweiss Mid Cap Fund	12,646.93	0.40

Note: The above-mentioned schemes have been selected based on expense ratio as of December 31, 2025.

Conclusion

Investors looking to make lump-sum investments in January 2026 can benefit from combining high-growth and low-cost mutual funds. This includes choices like Kotak Midcap Fund, Edelweiss Midcap Fund, and ICICI Pru Dynamic Asset Allocation. By evaluating performance, AUM, and expense ratios, investors can build a diversified, well-balanced portfolio.

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: Jan 4, 2026, 9:00 AM IST

Aayushi Chaubey

Aayushi Chaubey is a finance enthusiast with a year of experience in the market research industry. She loves to decipher the impact of real-world developments on stock markets and how investors can make smart investment decisions to meet their long-term goals.

Know More