Best Mutual Funds for Lumpsum Investment for August 2026: SBI PSU Fund, Aditya Birla SL PSU Equity Fund and More

Lumpsum investing involves deploying a substantial amount in a mutual fund at one time, making fund selection an important consideration. Investors often evaluate factors such as long‑term returns, fund size, expense ratio, and risk‑adjusted performance metrics before making investment decisions.

The funds in this list represent a mix of thematic, sectoral, and diversified equity strategies. Based on available data for August 2026, the following mutual funds stand out based on 5‑year CAGR.

Best Mutual Funds for Lumpsum Investment Based on 5‑Year CAGR

Note: Data as on August 21, 2026

SBI PSU Fund

SBI PSU Fund is an open‑ended equity scheme that invests in a diversified portfolio of public sector undertakings and related businesses. The fund follows an active management approach and seeks opportunities across sectors such as banking, power, oil and gas, and industrials.

Its portfolio is focused on companies connected to the government‑owned enterprise ecosystem. Performance is influenced by PSU sector developments, government policies, and sector‑specific market trends.

Aditya Birla Sun Life PSU Equity Fund

Aditya Birla Sun Life PSU Equity Fund is a thematic equity scheme that predominantly invests in public sector undertakings. The fund can allocate between 80% and 100% of its assets to PSU‑related equity instruments, with limited exposure outside the theme.

Its portfolio typically includes companies operating in financial services, power, energy, mining, and industrial sectors. Returns are driven by developments within the PSU segment and changes in the broader government enterprise landscape.

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund focuses on companies linked directly or indirectly to infrastructure development. The investment universe includes construction, engineering, transportation, capital goods, power, and related sectors.

The fund follows an active approach and can shift allocations across infrastructure segments depending on opportunities. Its performance is influenced by capital expenditure cycles, infrastructure spending, and economic activity.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is an equity scheme that invests predominantly in mid‑cap companies. The fund follows a high‑conviction strategy aimed at identifying businesses with long‑term growth potential and competitive advantages.

It maintains the category‑mandated exposure to mid‑cap stocks while focusing on quality businesses. Performance depends on earnings growth, market sentiment, and trends within the mid‑cap segment.

LIC MF Infra Fund

LIC MF Infra Fund invests in companies engaged directly or indirectly in infrastructure‑related activities. Its portfolio may include businesses connected with construction, engineering, power, transportation, and capital goods.

The fund aims to generate long‑term capital appreciation through exposure to infrastructure themes. Returns are influenced by project execution, infrastructure investment, and sector‑specific developments.

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

DSP India T.I.G.E.R Fund, or The Infrastructure Growth and Economic Reforms Fund, invests in companies expected to benefit from reforms and infrastructure expansion. The scheme combines top‑down and bottom‑up approaches while evaluating economic trends, policy changes, and company fundamentals.

Its investment universe extends beyond traditional infrastructure sectors to include businesses linked to India's investment cycle. Fund performance is influenced by economic growth, reforms, and capital expenditure trends.

Nippon India Power & Infra Fund

Nippon India Power & Infra Fund focuses on companies operating across power, transportation, energy, resources, communications, and infrastructure segments. The scheme aims to participate in India's ongoing infrastructure and capital expenditure cycle through a diversified approach.

Its flexibility allows it to identify opportunities across different areas of the infrastructure ecosystem. Returns are linked to infrastructure spending, energy demand, and economic growth.

Invesco India PSU Equity Fund

Invesco India PSU Equity Fund primarily invests in public sector undertakings and businesses associated with government ownership. The portfolio may include companies from sectors such as financial services, industrials, and energy.

The fund seeks to capture opportunities arising from policy support, PSU profitability, and capital expenditure. Performance depends largely on developments within the PSU segment and related industries.

Bank of India Manufacturing & Infrastructure Fund

Bank of India Manufacturing & Infrastructure Fund combines exposure to manufacturing and infrastructure themes. The scheme invests across large‑cap, mid‑cap, and small‑cap companies involved in industrial growth and infrastructure development.

Its benchmark is constructed using equal exposure to manufacturing and infrastructure indices. Fund performance is influenced by industrial activity, capital expenditure, and manufacturing sector expansion.

UTI Transportation & Logistics Fund

UTI Transportation & Logistics Fund invests predominantly in companies operating in transportation and logistics businesses. Its portfolio can include road and rail transport, shipping, ports, warehousing, aviation, and logistics service providers.

The scheme seeks to benefit from growth in transportation infrastructure and movement of goods and people. Returns are influenced by freight volumes, infrastructure investment, and economic activity.

Read More: Best Fundamentally Strong Stocks for August 2026.

Conclusion

The mutual funds in this list represent a blend of PSU, infrastructure, manufacturing, transportation, and mid‑cap investment themes. Their long‑term performance has been shaped by sectoral trends, government spending, economic growth, and market cycles.

Since many of these schemes follow concentrated thematic approaches, their return profiles can differ significantly from diversified equity funds. As of August 2026, these funds highlight some of the top performers based on 5‑year CAGR among their respective categories.

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.