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Top Mutual Fund for Lumpsum Investment to Invest Online in 2024

Top Mutual Fund for Lumpsum Investment to Invest Online in 2024
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Investing a substantial sum in a mutual fund in one go, known as lumpsum investment, is a strategic approach. Whether you’ve received a windfall, a bonus, or experienced a financial gain, this method allows you to deploy a significant amount at once. Timing is crucial when opting for lump sum investments, considering market fluctuations. Yet, specific mutual funds are well-suited for this approach. Precisely, the best mutual fund for lumpsum investments in India.

Choosing the right mutual fund for lump sum investment is pivotal for portfolio diversification and long-term returns optimization. With numerous options in the market, identifying the ideal scheme may seem daunting. In this blog, we’ll delve into the best mutual fund for lumpsum investment tailored for lump-sum investments and outline key factors to guide your selection.

What is the Best Mutual Fund for Lumpsum Investment?

Investing a lump sum in mutual funds means committing a substantial amount of money in a single transaction, differing from the regular contributions of systematic investment plans (SIPs). This approach involves buying fund units at the current Net Asset Value (NAV), calculated by dividing the total fund assets by outstanding units. Opting for a lump sum allows investors to enter the market with a significant investment, potentially capitalizing on market trends and fund performance.

This strategy suits those with substantial savings, sizable inheritances, bonuses, or specific financial goals. It offers a chance for accelerated wealth growth, capital appreciation, and portfolio diversification.

It’s crucial to recognize that mutual funds provide diverse options like equity, debt, and balanced funds, each with distinct risk-reward profiles, objectives, and asset allocation strategies. Therefore, aligning your investment goals, risk tolerance, and time horizon with a fund’s characteristics is vital when selecting the best mutual funds for lump sum investment in mutual funds. Let us now find out which fund is best for lumpsum investments on our list!

List of Best Mutual Fund for Lumpsum Investment in India 2024

Here is an educational list of the predicted best mutual fund for lumpsum investments in India for 2024. You may consider our list if you’re trying to find the best fund for lumpsum investments in 2024:

Fund Name Fund Category5Y Returns
Quant Small Cap FundEquity29.69%
Quant Infrastructure FundEquity28.38%
Quant Tax PlanEquity27.57%
Axis Small Cap FundEquity27.22%
Aditya Birla Sun Life Medium TermDebt8.91%
Nippon India Nivesh Lakshya FundDebt8.75%
SBI Magnum Gilt FundDebt8.62%
Quant Multi Asset FundHybrid22.39%
Quant Absolute FundHybrid21.84%
Bank of India Mid & Small Cap Equity & Debt FundHybrid19.15%
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Top 10 Mutual Fund for Lumpsum Investment: An Overview

If you’ve been wondering where to invest lumpsum amount, you’ve come to the right place! Here is a brief overview for all the mutual funds listed above as the best mutual fund for lumpsum investments in India:

Quant Small Cap Fund

Quant Small Cap Fund, an equity-oriented scheme by Quant Mutual Fund, commenced on January 1, 2013, and presently boasts an AUM of Rs 9,089 crore. Over the past five years, it has delivered an impressive return of 29.69%. The fund primarily seeks capital appreciation and long-term growth by investing in a diverse range of small-cap companies. A 1% exit load is applicable if redeemed within one year. It is one of the best lump sum investment plans on our list!

Quant Infrastructure Fund

Quant Mutual Fund presents the Quant Infrastructure Fund, introduced on January 1, 2013, with an AUM of Rs 980 crore. Achieving a 28.38% return over the past 5 years, this equity scheme aims for capital appreciation and long-term growth by diversifying investments across infrastructural companies. It has emerged as one of the best lumpsum mutual funds.  A 0.5% exit load applies if redeemed within 90 days. It is also one of the best lump sum mutual funds on our list!

Quant Tax Plan

The Quant Tax Plan, an equity-linked saving scheme (ELSS) by Quant Mutual Fund, launched on April 1, 2000, boasts an AUM of Rs 4,925 Crore. Over the last 5 years, it has delivered a commendable return of 27.57%. Geared towards capital appreciation, the fund strategically invests in a diverse portfolio of high-growth equity shares. With a 3-year lock-in period, early redemption is restricted, eliminating any exit load, making it also one of the best mutual fund to invest lumpsum on our list!

Axis Small Cap Fund

Axis Small Cap Fund, launched on 29-Nov-2013 by Axis Mutual Fund, boasts an AUM of Rs 16,175 crore and has delivered an impressive 27.22% return in the past 5 years. Designed to foster long-term capital growth, this fund strategically invests in a diverse portfolio, primarily composed of equity and equity-related instruments from small-cap companies. Be aware of a 1% exit load if redeemed within 365 days. However it is also one of the best mutual fund to invest lumpsum for 1 year on our list!

Aditya Birla Sun Life Medium Term

Aditya Birla Sun Life Medium Term, a debt-oriented scheme from Aditya Birla Sun Life Mutual Fund, was launched on March 25, 2009. It currently holds an AUM of Rs. 1,897 crore, delivering a return of 8.91%. With a focus on generating a consistent income and growing capital, the fund primarily invests in a portfolio of medium-term debt securities. It imposes a 2% exit load on units redeemed within 365 days exceeding 15%. Furthermore, 1% for redemptions between 366 and 730 days. It is also one of the best lumpsum investment mutual funds on our list!

Nippon India Nivesh Lakshya Fund

The Nippon India Nivesh Lakshya Fund, a debt-oriented mutual fund by Nippon India Mutual Fund, launched on 06-Jul-2018, boasts an AUM of Rs 6,361 crore. This scheme aims for consistent income and capital growth through primary investments in debt and money market instruments. Notably, an exit load of 1% is applicable to units redeemed within 365 days, exceeding the 15% threshold. It is also one of the best mutual funds for lumpsum investment long term on our list!

SBI Magnum Gilt Fund

SBI Magnum Gilt Fund, launched on December 30, 2000, by SBI Mutual Fund, is a debt-oriented scheme with an AUM of Rs 7,268 crore. Over the last five years, it has delivered a return of 8.62%. The fund focuses on offering investors consistent income and long-term capital appreciation through investments in debt securities issued by the Central or State Government(s). Notably, there is no exit load associated with this fund, making it one of the best funds for lumpsum investment on our list!

Quant Multi Asset Fund

The Quant Multi Asset Fund, part of Quant mutual fund, launched on March 21, 2001, manages an AUM of Rs 1,020. Over the last 5 years, it delivered a 22.39% return. Focused on income and capital appreciation, the fund invests in government

securities from the Central and/or State Governments. An exit load of 1% applies if redeemed within 15 days.

Quant Absolute Fund

Quant Absolute Fund, an aggressive hybrid offering from Quant Mutual Fund, debuted on January 1, 2013, and currently manages Rs 1,378 Crore. Over the past 5 years, it has delivered a notable 21.84% return. The fund’s objective is to generate income and capital appreciation primarily through equity and equity-related investments, with a balanced allocation to debt securities and money market instruments. A 1% exit load applies if redeemed within 15 days. It is also one of the best mutual funds to invest in lumpsum on our list!

Bank of India Mid & Small Cap Equity & Debt Fund

Bank of India Mutual Fund presents its hybrid Mid & Small Cap Equity & Debt Fund, a dynamic investment option launched on July 20, 2016. With an impressive Rs. 492 crore in assets under management, the fund has delivered an average return of 19.15% over the past five years.This unique fund strives to provide investors with a blend of capital appreciation and income by strategically investing in mid and small-cap stocks, equity-related securities, and fixed-income instruments. Keep in mind that there is a 1% exit load for redemptions made within the first three months. Invest wisely for a balanced and rewarding financial journey. It also offers one of the best SIP for lumpsum investment on our list!

How do the Best Mutual Fund for Lumpsum Investments Work?

When exploring the realm of lumpsum investments, understanding how the best mutual funds operate is crucial for making informed decisions. These funds leverage a strategic approach to deploying large, one-time investments. Unlike systematic investment plans (SIPs), lumpsum investments involve committing a substantial amount upfront.

The top-performing mutual funds in this category carefully allocate funds across a diversified portfolio, aiming for optimal returns. They often focus on a mix of equities, debt instruments, and other assets to balance risk and reward. Rigorous market analysis, skilled fund management, and proactive adjustments to market trends are hallmarks of these funds, ensuring they adapt to the dynamic investment landscape.

Investors can benefit from the potential for higher returns and faster capital appreciation, making the best lumpsum mutual fund investments an attractive option for those looking to deploy a significant amount of capital efficiently. As you explore your investment options, keep an eye on historical performance, fund objectives, and the expertise of fund managers to align your lumpsum investment strategy with your financial goals.

Who Should Invest in Best Mutual Fund for Lumpsum Investments?

The best mf for lumpsum investments are tailored for specific investor profiles. If you fall into any of the following categories, these funds might be the ideal choice for you:

  1. Sudden Wealth Recipients: Individuals who have received a windfall, such as a bonus, inheritance, or property sale, can benefit from the immediate growth potential offered by lump sum investments.
  2. Experienced Investors: If you’re well-versed in market trends and have a knack for strategic investment decisions, lump sum funds provide an opportunity to capitalize on your expertise.
  3. Risk-Tolerant Individuals: Investing lump sum in mutual funds requires a higher risk tolerance, as the investment isn’t spread out over time. Investors comfortable with market fluctuations may find these funds suitable.
  4. Long-Term Investors: While lump sum of money investments can generate quick returns, they are most beneficial for individuals with a long-term financial outlook, allowing them to weather short-term market fluctuations.

Factors to Consider before investing in the Best Mutual Fund for Lumpsum Investments

When delving into the world of lump-sum investments, it’s crucial to consider various factors that can significantly impact the performance of your chosen mutual fund. Here’s a concise breakdown of key considerations:

Market Timing: Seizing Opportunities and Avoiding Pitfalls

  1. Optimal Market Entry: The ideal time to deploy a lump sum into mutual funds is when market conditions are at their nadir but displaying signs of future growth. This strategic move capitalizes on potential upswings, maximizing returns for investors.
  2. Caution in Booming Markets: Conversely, exercising prudence is essential when the market is flourishing. Entering with a lump sum during peak performance might lead to suboptimal returns or even losses. Stay vigilant and evaluate the market landscape before making significant investment decisions.

Long-Term Commitment: Unleashing the Power of Time

  1. Best for the Long Haul: Mutual funds lumpsum investments shine when viewed as a long term mutual funds for lumpsum investment. If you can commit your lump sum for an extended period, especially five years or more, the potential benefits become substantial. The longer the horizon, the greater the potential for wealth accumulation.
  2. Decade-Long Rewards: Going a step further, holding onto your investment for a decade or more can unlock tremendous benefits. The power of compounding and the resilience of well-chosen mutual funds can lead to impressive returns over an extended duration.

Risks Involved While Investing in the  Best Mutual Fund for Lumpsum Investments

Embarking on a lump sum investment journey in top mutual funds holds potential for robust returns, yet it’s crucial to navigate the associated risks. Here’s a comprehensive look:

  1. Market Volatility: Even the best-performing funds are susceptible to short-term losses owing to unpredictable market fluctuations. A sudden downturn can impact the fund’s value.
  2. Economic Factors: Unforeseen economic changes, whether on a global or local scale, can significantly influence the performance of the fund. External factors such as interest rate fluctuations or geopolitical events can impact returns.
  3. Unforeseen Events: Unexpected events, such as natural disasters or global crises, can have an immediate and adverse effect on the fund’s value. These unforeseen circumstances are beyond the fund manager’s control but can impact investor returns.
  4. Management Changes: Shifts in fund management, whether due to retirements, resignations, or strategic decisions, can introduce uncertainties. A change in leadership may alter the fund’s investment strategy, potentially impacting its performance.

Benefits of Investing in the Best Mutual Fund for Lumpsum Investments

Exploring the realm of lumpsum investments through mutual funds unveils several advantages worth considering:

  1. Enhanced Returns: Opting for top-tier mutual funds ensures a strategic approach to potentially amplify returns, maximizing the efficiency of your lumpsum investment.
  2. Diversification: The best mutual funds spread investments across diverse sectors, mitigating risk and fostering potential long-term growth by avoiding overreliance on a single asset class.
  3. Professional Fund Management: Proficient fund managers associated with leading mutual funds bring expertise to the table. Consequently by consistently analyzing market dynamics to make informed decisions on your investment.
  4. Transparent Performance Metrics: Stay abreast of your investment’s performance through regular updates and detailed reports, fostering transparency and providing insights into the trajectory of your lumpsum investment.
  5. Liquidity and Adaptability: The liquidity and flexibility offered by top mutual funds enable easy access to your funds. Consequently, allowing you to navigate changing financial requirements with agility.

How to Choose the Best Mutual Fund for Lumpsum Investments for investing?

When it comes to making lumpsum investments, selecting the right mutual fund is crucial for maximizing returns and minimizing risks. Follow these key steps to ensure you pick the best mutual fund for your lumpsum investment:

1. Define Your Financial Goals: Start by clearly outlining your financial objectives. Whether it’s wealth creation, long-term growth, or short-term gains, knowing your goals will guide your mutual fund selection.

2. Assess Risk Tolerance: Understand your risk appetite. Different mutual funds carry varying levels of risk. Evaluate your comfort with market fluctuations and choose a fund that aligns with your risk tolerance.

3. Research Fund Performance: Analyze the historical performance of potential mutual funds. Look for consistent returns over different market conditions. A track record of steady growth is a positive indicator.

4. Diversification Matters: Opt for mutual funds that offer diversification across sectors and asset classes. This helps spread risk and enhances the potential for returns.

5. Fund Manager Expertise: Evaluate the expertise and experience of the fund manager. A seasoned manager with a successful track record is likely to make more informed investment decisions.

6. Expense Ratio Consideration: Keep an eye on the expense ratio, as lower fees can significantly impact your overall returns. Choose funds with reasonable expenses to optimize your investment.

7. Check for Exit Load: Be aware of any exit loads associated with the mutual fund. Some funds charge fees for redeeming units within a specific time frame. Factor this into your decision-making process.

What are the Returns on the Best Mutual Fund for Lumpsum Investments & How are they Calculated?

Calculating returns is a crucial aspect when evaluating the performance of the best mutual funds for lumpsum investments. Understanding this process empowers investors to make informed decisions. The returns on these funds are determined by assessing the change in the Net Asset Value (NAV) over a specific period.

Here’s a simplified breakdown of the calculation:

  1. Initial NAV:The investment begins with the lumpsum amount at the prevailing NAV. This marks the starting point for return calculations.
  2. Final NAV: At the end of the investment period, the NAV is reassessed. The difference between the initial and final NAV reflects the capital appreciation or depreciation.
  3. Dividends and Distributions:Some funds may offer dividends or distributions. These should be factored into the total returns.
  4. Time Factor:Returns are annualized to provide a standardized measure. This helps in comparing the performance of mutual funds with different investment durations.

Taxability on the Best Mutual Fund for Lumpsum Investments

When delving into the world of lumpsum investments, understanding the tax implications is crucial. The best mutual funds for lumpsum investments not only offer potential returns but also come with varying tax structures. It’s essential to be aware of these tax implications to make informed financial decisions.

Capital Gains Tax

The gains you make on your lumpsum investment are subject to capital gains tax. This tax is divided into short-term and long-term categories, with different rates applying to each. Short-term capital gains are taxed at your regular income tax rate, while long-term capital gains enjoy preferential tax treatment.

Dividend Distribution Tax (DDT)

For mutual funds that declare dividends, the dividend distribution tax comes into play. However, it’s important to note that this tax is borne by the mutual fund itself before the distribution of dividends. Investors typically receive their dividends post the deduction of DDT.

Indexation Benefits

Long-term capital gains can benefit from indexation, a method that adjusts the purchase price of the investment based on inflation. This adjustment helps in reducing the taxable gains, potentially resulting in a lower tax liability.

To Wrap It Up. . .

Invest lumpsum in mutual funds wisely in 2024 with the best mutual fund for lumpsum investments. Especially funds that promise long-term growth and diversification for lumpsum investments. Analyze fund traits, align investments with your financial goals, and seek professional advice for informed decision-making.

FAQs

1. How long should I stay invested in the Best Mutual Fund for Lumpsum Investments?

You must be ready for the long haul of 5-7 years before diving into a lump sum investment in an equity fund, ask yourself this crucial question.

2. Where do Best Mutual Fund for Lumpsum Investments Invest?

The best mutual funds for lump sum investments typically invest in a diversified portfolio of stocks, bonds, and other securities.

3. What are the returns on the Best Mutual Fund for Lumpsum Investments?

The returns on the best mutual fund for lumpsum investments vary and depend on market conditions. As seen on our list, it can range from 5Y returns of 8-29%.

4. When Should I Invest in the Best Mutual Fund for Lumpsum Investments?

You may consider a lumpsum investment when you have a substantial amount to invest, such as post-retirement funds, house sale proceeds, etc.

5. What is the lock in period for the Best Mutual Fund for Lumpsum Investments?

SIPs typically involve a sequential 3-year lock-in, while Lumpsum investments can be withdrawn in full after 3 years.

6. Which mutual fund is best for lumpsum investment?

This is an educational list of the top 3 mutual funds for lumpsum investment 2024:
1.Quant Small Cap Fund
2. Quant Infrastructure Fund
3. Quant Tax Plan

7. Is it risky to invest lumpsum amounts at once?

Investing a lumpsum carries market timing risks. It involves committing funds at a particular moment, which could be when the market is either overvalued or undervalued.