Best Mutual Funds for Lump Sum Investments in India for June 2026: LIC MF Infra Fund, SBI PSU Fund, HDFC Infra Fund, and More!

Lump sum investing in mutual funds can help investors capture long-term wealth creation, especially during strong economic cycles. In 2026, sectoral and thematic funds linked to infrastructure, manufacturing, and public sector enterprises have shown strong performance trends, driven by India’s capex-led growth story. 

However, these funds also carry higher risk due to their concentrated exposure. This article highlights some of the best mutual funds for lump sum investment in June 2026 based on AUM and 5-year CAGR performance. 

Best Mutual Funds for Lumpsum Investment for June 2026

Overview of Top Mutual Funds For Lumpsum Investment for June 2026

LIC MF Infra Fund

It is a balanced infrastructure fund that blends large industrial infrastructure companies with selective exposure to autos and telecom, managing risk through diversification within the sector while targeting cyclical growth, with a 3Y CAGR of 27.69% and an expense ratio of 0.83%.

DSP India T.I.G.E.R Fund

It is an aggressive industrial and manufacturing-focused thematic fund with strong exposure to mid and small-cap capital goods, engineering, and utilities, targeting India’s industrial growth story with higher volatility, delivering a 3Y CAGR of 25.68% and an expense ratio of 0.71%.

ICICI Pru Infrastructure Fund

It is a large-cap heavy infrastructure fund focused on stable, liquid companies in utilities, logistics, and construction materials, aiming for steady long-term structural growth with lower volatility, with a 3Y CAGR of 21.72% and an expense ratio of 0.98%.

Nippon India Power & Infra Fund

It is a high-volatility fund focused on the full power and energy value chain including generation, renewables, and heavy industrial equipment, moving strongly with economic cycles, delivering a 3Y CAGR of 24.06% and an expense ratio of 0.96%.

Canara Robeco Infrastructure Fund

It is a relatively conservative infrastructure fund focused on financially strong companies in construction materials, engineering, and energy, avoiding excessive cyclical risk, with a 3Y CAGR of 23.39% and an expense ratio of 0.85%.

Invesco India Infrastructure Fund

It is a quality-focused infrastructure fund that selects companies with low debt and high capital efficiency across engineering and industrial sectors, emphasizing operational strength over pure cyclicality, with a 3Y CAGR of 23.16% and an expense ratio of 0.75%.

HDFC Infrastructure Fund

It is a deep-value cyclical fund investing in underperforming infrastructure and industrial companies with turnaround potential, aiming for long-term value creation rather than short-term momentum, with a 3Y CAGR of 21.27% and an expense ratio of 1.10%.

Conclusion

Lump sum investments in sectoral and thematic mutual funds can deliver strong returns, as seen in infrastructure and PSU-focused schemes in 2026. However, these funds are inherently cyclical and volatile, making timing and risk tolerance crucial factors. While funds like LIC MF Infra Fund and DSP India T.I.G.E.R Fund have delivered strong recent performance, investors should balance them within a diversified portfolio rather than relying solely on thematic exposure.

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.