Investing in mutual funds through lump sum investments can be a great way to take advantage of market corrections and long-term growth. However, selecting the right mutual fund depends on your risk appetite and investment horizon. Here, we discuss five mutual funds suitable for different types of investors, from low to high risk, along with their key details in a tabular format.
Top 5 Mutual Funds for Lump Sum Investment
| Category | Fund Name | 6-Month Return | 1-Year Return | 3-Year Return | 5-Year Return | Fund Size (Cr) | Expense Ratio | Exit Load | Benchmark Followed | Min. SIP (₹) | Min. Lumpsum (₹) |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Large Cap | Nippon India Large Cap Fund | -5% | 16% | 18% | 19% | 35,700 | 0.66% | 1% (within 7 days) | BSE 100 TRI | 1000 | 5000 |
| Large & Mid Cap | Motilal Oswal Large & Mid Cap | 9% | 35% | 24% | 26% | 9,001 | 0.53% | 1% (within 1 year) | Nifty Large Mid Cap 250 TRI | 500 | 1000 |
| Flexi Cap | JM Flexi Cap Fund | -5% | 27% | 23% | 24% | N/A | 0.52% | No Exit Load | BSE 500 TRI | 500 | 1000 |
| Contra Fund | SBI Contra Fund | -4% | 16% | 22% | 29% | 4,111 | 0.59% | 1% (within 1 year) | BSE 500 TRI | 500 | 5000 |
| Small Cap | Quant Small Cap Fund | N/A | N/A | N/A | N/A | N/A | 0.65% | 1% (within 1 year) | N/A | 500 | 5000 |
Key Takeaways:
- Large Cap Funds (Moderate Risk, Stability) – Ideal for conservative investors who want stable returns with minimal risk. Example: Nippon India Large Cap Fund.
- Large & Mid Cap Funds (Balanced Growth & Stability) – Suitable for those who want some exposure to mid-cap stocks while maintaining stability. Example: Motilal Oswal Large & Mid Cap Fund.
- Flexi Cap Funds (Higher Risk, Higher Returns) – Best for aggressive investors comfortable with high risk and market fluctuations. Example: JM Flexi Cap Fund.
- Contra Funds (Value Investing Strategy) – Suitable for long-term investors looking for undervalued stocks with high potential. Example: SBI Contra Fund.
- Small Cap Funds (High Risk, High Reward) – Suitable for investors with high risk tolerance and a long investment horizon. Example: Quant Small Cap Fund.
Investment Strategy for Lump Sum Investing
- Staggered Investment Approach: Instead of investing the entire lump sum at once, deploy funds gradually in phases based on market corrections.
- Use Market Downturns: Invest when the market corrects to take advantage of lower NAVs.
- Combine with SIP: Continue systematic investment plans (SIP) alongside lump sum investments to average out the cost.
By carefully selecting the right fund based on your risk profile and market conditions, you can optimize your lump sum investment strategy for long-term wealth creation.
Disclaimer: Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. Please read the offer document carefully before investing. This content is for educational purposes only and does not constitute financial advice. Consult your financial advisor for personalized advice.