List of Top Mutual Funds for Lumpsum Investments in NSE for 2025
A lumpsum investment means placing an upfront large amount into a mutual fund in one transaction instead of making multiple smaller contributions over time. Recent trends show that lumpsum investments in mutual funds, especially in small-cap and mid-cap categories, deliver strong historical returns as of July 2025. However, they also involve significant risk exposure, which makes factors like market conditions and investment horizon important when evaluating performance. This article covers the top 10 mutual funds for lumpsum investments along with their advantages, risks, and factors to consider before investing.
Best Mutual Fund for Lumpsum Investment in India
Here’s the list of the top 10 mutual funds for lumpsum investment in India for 2025:
| Fund Name | AUM | CAGR 3Y (%) | CAGR 5Y | Expense Ratio | Minimum Lumpsum | NAV | Exit Load | Volatility | Absolute Returns - 1Y |
|---|---|---|---|---|---|---|---|---|---|
| Kotak Midcap Fund | 57,375.20 | 21.51 | 29.43 | 0.37 | 100.00 | 157.41 | 1.00 | 17.14 | 3.15 |
| ICICI Pru Asset Allocator Fund | 27,257.74 | 15.21 | 16.41 | 0.21 | 5,000.00 | 133.48 | 1.00 | 6.21 | 7.69 |
| Edelweiss Mid Cap Fund | 11,026.93 | 24.59 | 31.43 | 0.39 | 100.00 | 117.32 | 1.00 | 17.76 | 3.16 |
| ICICI Pru Nifty Next 50 Index Fund | 7,649.86 | 15.43 | 20.58 | 0.31 | 100.00 | 62.47 | 0.00 | 19.05 | -9.28 |
| Nippon India Multi Asset Allocation Fund | 6,649.41 | 20.06 | 19.55 | 0.29 | 5,000.00 | 23.76 | 1.00 | 9.02 | 12.27 |
| ICICI Pru Thematic Advantage Fund | 5,976.70 | 20.40 | 26.39 | 0.30 | 5,000.00 | 239.57 | 1.00 | 10.08 | 5.37 |
| UTI Nifty Next 50 Index Fund | 5,481.76 | 15.56 | 20.70 | 0.34 | 1,000.00 | 24.89 | 0.00 | 19.05 | -8.94 |
| SBI Gold | 5,220.86 | 26.83 | 14.83 | 0.10 | 5,000.00 | 32.73 | 1.00 | 14.26 | 46.29 |
| HDFC Gold ETF FoF | 4,536.91 | 27.36 | 15.07 | 0.18 | 100.00 | 33.96 | 1.00 | 14.39 | 48.10 |
| HDFC Multi-Asset Active FOF | 4,510.92 | 16.77 | 0.00 | 0.10 | 100.00 | 19.38 | 1.00 | 6.30 | 9.77 |
Note: The data on the list of best mutual fund for lumpsum investment is from 9th September, 2025. This data on the lumpsum investment plans is derived from the Tickertape Mutual Funds Screener, based on the criteria mentioned below:
- Category – Equity
- Plan – Growth
- AUM – Sorted from Highest to Lowest
🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate funds with over 50+ pre-loaded filters and parameters.
Overview of Top Lumpsum Mutual Funds in India
Kotak Midcap Fund
This equity scheme invests mainly in mid-cap companies across multiple sectors. The portfolio shows businesses in the medium-capitalisation range and offers exposure to firms between established large caps and emerging small caps.
ICICI Pru Asset Allocator Fund
This scheme follows a multi-asset allocation model and distributes investments across equity, debt, and gold. The portfolio adjusts weights based on an internal framework that reflects shifts in asset classes due to changing market valuations.
Edelweiss Mid Cap Fund
This equity scheme focuses on mid-cap stocks across industries. The portfolio represents companies with medium market capitalisation, positioned between the stability of large caps and the volatility of small caps.
ICICI Pru Nifty Next 50 Index Fund
This index fund replicates the Nifty Next 50 Index, which includes the 50 companies ranked after the Nifty 50. The portfolio represents firms from various industries that may be emerging large-cap candidates.
Nippon India Multi Asset Allocation Fund
This scheme invests across equity, debt, gold, and international securities. The portfolio provides exposure to multiple asset classes and reflects a diversified investment approach across domestic and global markets.
ICICI Pru Thematic Advantage Fund
This scheme invests in domestic and international equity themes by allocating to multiple underlying funds. The portfolio provides exposure to varied sectors and investment ideas under a thematic allocation framework.
UTI Nifty Next 50 Index Fund
This index scheme mirrors the Nifty Next 50 Index. It invests in 50 companies ranked just below the Nifty 50, representing firms across several sectors of the Indian market.
SBI Gold
This open-ended scheme invests in gold exchange-traded funds. Its portfolio reflects domestic gold prices and represents gold as an asset class.
HDFC Gold ETF FoF
This fund of funds invests mainly in units of the HDFC Gold ETF. The portfolio indirectly tracks domestic gold prices through the ETF structure instead of holding physical gold.
HDFC Multi-Asset Active FOF
This fund of funds invests across equity, debt, and gold by allocating to HDFC mutual fund schemes. The portfolio actively adjusts weights to represent different asset classes within a single structure.
What Is a Lumpsum Investment?
A lumpsum investment means putting a significant amount of money into a mutual fund investment for lumpsum in one go instead of investing periodically. For example, using your annual bonus, incentives, or savings to invest directly in a mutual fund is considered a lumpsum investment. It differs from a Systematic Investment Plan (SIP), where you invest smaller amounts regularly.
Taxation on Equity Mutual Fund for Lumpsum Investments
Equity mutual funds primarily invest in equity and equity-related instruments of the companies. The taxation rules for such funds are aligned with equity mutual fund taxation in India.
| Type of Capital Gain | Holding Period | Tax Rate | Exemption / Threshold |
| Short-Term Capital Gains (STCG) | Less than 12 months | 20% flat | No exemption |
| Long-Term Capital Gains (LTCG) | More than 12 months | 12.50% | Gains up to ₹1.25 lakh per financial year exempt |
How to Invest a Lumpsum Amount in Mutual Funds?
You can easily invest a lumpsum amount in mutual funds by following these steps:
- To invest in mutual funds, you can visit an equity investment platform such as smallcase or Tickertape.
- The next step would be to research and identify the best mutual funds for lumpsum investments which align with your investment thesis. You can easily select and learn more about the best hybrid funds with the help of a financial tool like the Tickertape Mutual Fund Screener. With 50+ pre-loaded filters, it helps you to create a comprehensive list by giving insights about the fund’s performance. Try it now!
- Once you have selected the lumpsum investment options based on different metrics and parameters, go to smallcase.com or the smallcase app, and login via your phone number. Click on ‘Discover‘ and enter the name of the specific mutual fund in the search bar and hit enter. You can click on ‘invest now’ and select whether you want to invest a lumpsum amount or start an SIP!
Using a Lumpsum Calculator
A lumpsum calculator estimates how much you need to invest today to reach a future goal and shows potential returns.
Formula:
PV=FV(1+R)TPV = \dfrac{FV}{(1 + R)^T}PV=(1+R)TFV
Where:
- PV = Present Value
- FV = Future Value
- R = Expected Rate of Return
- T = Time Period
Example: To accumulate ₹10 lakh in five years at an expected annual return of 12%, you need to invest about ₹4,52,349 today.
The smallcase lumpsum calculator simplifies the process by offering two options:
- I Know My Investment Amount: Enter the amount, expected return, and duration to see the future value.
- I Know My Goal Amount: Enter your goal, expected return, and duration to find out how much to invest today.
Example: If you aim for ₹15 lakh after 10 years at a 10% annual return, the calculator shows you’d need to invest around ₹9.2 lakh today.
Advantages of Lumpsum Investments
- Higher Growth Potential: Lump sum investments deploy the full amount immediately, allowing for quicker growth. For example, investing ₹5 lakh during a market dip can yield better returns than SIPs with smaller, gradual investments.
- Power of Compounding: Lump sum investments benefit from compounding, where returns accumulate on gains. For instance, ₹2 lakh invested at 12% for 15 years can grow to over ₹10 lakh.
- Convenience and Simplicity: A one-time investment eliminates the need for regular payments or reminders, ideal for lump sums like bonuses or maturity payouts.
- Lower Transaction Costs: Lump sum investments avoid the recurring fees and charges associated with SIPs.
- Efficient Use of Windfalls: Investing unexpected money, such as bonuses or inheritance, as a lump sum ensures the lumpsum investment options start working immediately, instead of sitting idle.
Risks of Lumpsum Investments
- Market Volatility Risk: This highlights the potential for immediate loss, especially with lumpsum investments, if the market declines after the investment.
- Liquidity Constraints: Liquidity is crucial when making large investments. It’s important to ensure access to emergency funds, which many investors overlook.
- Market Timing Dependency: Timing significantly impacts returns, especially for those comparing lump-sum and SIP strategies. Choosing the right time to invest is essential.
- Concentration Risk: Failing to diversify and putting all funds into one investment increases risk. Diversification helps reduce potential losses.
- Costs and Fees: Expense ratios, exit loads, and taxes can affect long-term returns. Understanding these costs is vital, particularly for new investors.
To Wrap Up
Lumpsum investments represent a one-time approach to mutual fund investing. Their outcomes depend on factors such as market conditions, investment horizon, and individual risk appetite. While they offer features like simplicity and the potential to benefit from compounding, their performance can also vary with market cycles. Tools such as smallcase lumpsum calculators illustrate projections and scenarios, providing a clearer picture of how this mode of investing functions.
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Frequently Asked Questions about the Mutual Funds for Lumpsum Investments
A lumpsum investment refers to investing a single large amount in one transaction instead of making multiple smaller contributions over time. For example, depositing ₹5 lakh into a mutual fund at once is considered a lumpsum investment.
A lumpsum investment refers to placing a one-time amount into a mutual fund in a single transaction, instead of spreading contributions over multiple instalments. The suitability depends on individual circumstances, investment horizon, and market conditions at the time.
The lock-in period varies by mutual fund type:
– Equity Linked Savings Schemes (ELSS) have a mandatory 3-year lock-in.
– Most open-ended mutual funds do not have a lock-in period.
However, some funds may levy an exit load if redeemed before a specified duration.
Lumpsum returns depend on several factors, such as the type of fund, market movements, and duration of investment. Equity-oriented funds are exposed to market-linked fluctuations, whereas debt funds are structured around fixed-income instruments and may behave differently. There is no fixed or guaranteed return rate.
Whether a lumpsum investment is good or not depends on market conditions, investment objectives, and the fund category chosen. Lumpsum investments may benefit from long-term growth but remain exposed to market volatility in the short term.
Lumpsum and SIP are two different approaches:
– Lumpsum involves investing the entire amount upfront, which exposes the investment to market conditions from day one.
– SIP (Systematic Investment Plan) involves investing smaller amounts periodically, which spreads out market entry points.
The effectiveness of either approach varies based on investment goals, risk tolerance, and market performance.
