Seamless Lumpsum Investments in India: Discovering the Best Mutual Funds
Last Updated on: May 4, 2026
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Summary
Lumpsum investments in mutual funds allow you to invest in different sectors of stock at once. By investing in a lump sum, you can get better long-term returns while reducing risk through proper planning and digital tools.
When investing in mutual funds, SIPs are often the default choice. But when you have a significant amount of idle capital, a lump-sum investment can be equally effective. The difference is that lump-sum investing depends heavily on timing, fund selection, and market conditions. This makes choosing the right fund far more critical than in a staggered approach.
In this guide, we explore some of the best mutual funds for lumpsuminvestments and discuss the key factors to consider when choosing funds.
Key Highlights
Lump-sum investing works best when paired with the right fund type and a long holding horizon.
The best lump-sum mutual fund options in India span equity, debt, and hybrid categories
Digital platforms have made it easier to invest, track, and manage lump-sum portfolios.
Using a lump sum investment calculator helps you project returns before you commit.
Top 10 Mutual Funds to Ease Your Lumpsum Investment Journey
Here are the 10 best mutual funds you can check out for a lump-sum investment.
Note: All CAGR figures are for the Direct–Growth plan and are as of [25/04/2026]. Returns are annualized and past performance is not indicative of future results.
SBI PSU Fund Direct-Growth
One of the prominent PSU-themed funds in India, launched in July 2010 (Regular Plan) with the Direct Plan available since January 2013, this fund gives the highest return on your investment.
AUM of ₹5,891.30 crore
5Y CAGR of 29.99% | 3Y CAGR of 33.90% (as of April 2026)
Carries a very high risk
95.12% deployed in equity, 4.80% in cash, and 0.08% in Treasury Bills
Portfolio anchored by State Bank of India (16.50%), Power Grid Corporation (10.02%), and NTPC (9.72%)
Expense ratio of 0.85%
Aditya Birla SL PSU Equity Fund Direct-Growth
Among the newest PSU funds, this fund was launched on 30th December 2019 and has grown rapidly.
AUM of ₹5,334.01 crore (as of February 2026)
Rated very high risk
Leanest cash buffer of just 2.93%, with 97.07% fully invested in equity
Key bets on State Bank of India (19.28%), NTPC (8.22%), and Bharat Electronics (5.61%)
Expense ratio of 0.61%, the lowest among all 10 funds listed
ICICI Pru Infrastructure Fund Direct-Growth
By sheer asset size among infrastructure funds in this list, this fund manages an AUM of ₹8,097.89 crore (as of March 2026).
Expense ratio of 1.15% (Direct Plan, as of March 2026)
Invesco India PSU Equity Fund Direct-Growth
With a corpus of ₹1,334.55 crore, this fund allocates its funds in PSU banking and industrial machinery.
Carries a very high risk
96.53% in equity, 3.47% in cash
Top sectors: Public Banks (20.77%), Industrial Machinery (16.94%), and Power Generation (16.34%)
Key stocks: State Bank of India (8.60%), Indian Bank (7.33%), and Hindustan Aeronautics (6.82%)
Expense ratio of 0.91%
DSP India T.I.G.E.R Fund Direct-Growth
T.I.G.E.R stands for The Infrastructure Growth and Economic Reforms, a diversified fund originally launched on June 11, 2004 (Regular Plan), with the Direct Plan available since January 2013.
AUM of ₹4,979.31 crore
Rated very high risk
Portfolio split: 93.09% equity, 4.85% cash, and 2.06% in REITs & InvITs.
Top picks: NTPC (5.26%), Apollo Hospitals (4.49%), Larsen & Toubro (4.14%), and MCX (3.27%)
Expense ratio of 0.89%
LIC MF Infra Fund Direct-Growth
With an AUM of ₹1,006.68 crore, this fund has the highest cash allocation in this list.
Carries a very high risk
91.60% in equity, 8.40% held as cash
Top sectors: Electrical Components & Equipment (17.52%), Industrial Machinery (13.94%), Construction & Engineering (7.37%)
Key holdings: Larsen & Toubro (4.47%), Apollo Hospitals (3.51%), and Schneider Electric Infrastructure (3.34%)
Expense ratio of 1.01%
Nippon India Power & Infra Fund Direct-Growth
This fund has been fully committed to India’s power and energy sector, with 99.38% in equity.
AUM of ₹6,533.73 crore
Rated very high risk
99.38% in equity and just 0.62% as cash
Dominant sectors: Power Generation (22.07%), Construction & Engineering (13.49%), and Electrical Components (10.62%)
Top holdings: Reliance Industries (9.58%), NTPC (7.83%), and Larsen & Toubro (6.24%)
Expense ratio of 0.98%
Canara Rob Infrastructure Fund Direct-Growth
This mutual fund channels capital into construction, electrical, and energy majors.
AUM of ₹864.25 crore
Carries a very high risk
Equity at 94.93%, cash at 5.07%
Top sectors: Construction & Engineering (14.70%), Electrical Components (13.47%), and Power Generation (12.15%)
Majoring in infrastructure, energy, and private banking, this fund is one of the best mutual funds for lump-sum investment.
AUM of ₹3,173.61 crore
Rated very high risk
94.43% in equity, 5.57% as cash
Sectoral tilt towards Power Generation (14.44%), Construction & Engineering (11.58%), and Private Banks (8.22%)
Top stocks: Larsen & Toubro (7.36%), ONGC (6.80%), and Reliance Industries (5.92%)
Expense ratio of 0.99%
HDFC Infrastructure Fund Direct-Growth
Distinguishing itself from peers among the funds in this list, this fund integrates REITs & InvITs alongside conventional infrastructure stocks. Originally launched on March 10, 2008 (Regular Plan), with the Direct Plan available since January 2013.
AUM of ₹2,514 crore (as of December 2025)
Carries a very high risk
Portfolio: 94.59% equity, 3.21% REITs & InvITs, and 2.20% cash
Anchored by Larsen & Toubro (7.09%), ICICI Bank (6.22%), and NTPC (3.91%)
Expense ratio of 1.13% (Direct Plan) — the highest Direct Plan expense ratio among all 10 funds listed
Factors to Consider Before Investing in Lump-Sum Mutual Funds
Risk tolerance: Consider whether you could keep investing through a 20-30% market fall.
Expense ratio: Lower is better for long-term compounding; Direct Plans have lower costs
Fund manager track record: Consistency over 5-10 years is more important than short-term spikes.
AUM size: Very small AUM funds are subject to liquidity risk. The very large ones may underperform benchmarks.
Exit load: Check the fund’s exit load period before investing. For most funds in this list, the exit load applies only if you redeem within 30 days of investment (typically 0.50%–1%). This is much shorter than the 1-year window seen in some standard diversified equity funds. Always verify the exact exit load terms in the fund’s Scheme Information Document (SID).
Understanding Tax Limitations of Lump Sum Mutual Funds
The type and length of the investment determine the taxes. Here is how much tax you need to pay on lump-sum investment returns.
Fund type
Equity exposure
Holding period
Tax treatment (lump sum gains)
Equity Mutual Funds
≥65% equity (all standard equity and ELSS)
≤12 months
STCG – taxed at 20% (plus cess/surcharge).
>12 months
LTCG – gains up to ₹1.25 lakh per financial year are tax‑free; gains above ₹1.25 lakh are taxed at 12.5% (no indexation).Plus 0.001% STT on redemption.
Debt Mutual Funds
<35% equity, purchased on or after 1‑Apr‑2023
Any period
All gains are treated as short‑term.Taxed at your income tax slab rate.No indexation or LTCG benefits.
Hybrid Funds (Aggressive)
≥65% equity (equity‑oriented)
≤12 months
STCG – taxed at 20% (plus cess/surcharge).
>12 months
LTCG – taxed like equity: up to ₹1.25 lakh tax‑free, balance at 12.5% (no indexation).
Hybrid Funds (balanced)
>35% but <65% equity
≤24 months
STCG – taxed at income tax slab rate.
>24 months
LTCG – taxed at 12.5%.
You could save on taxes by planning your lump-sum payment redemption around your tax filing date.
The Role of Digital Platforms in Simplifying Lump-sum Investments
Digital platforms are changing how Indians invest in mutual funds. You no longer need a broker, physical forms, or a branch visit. Everything from KYC to redemption happens online.
Advantages of Using Digital Platforms for Mutual Fund Investments
Lump-sum investment calculator: Built-in tools help you plan.
Portfolio tracking: Real-time NAV updates and gain/loss statements in one dashboard.
Direct Plan access: Digital platforms give you Direct Plans – save 0.5-1% per year.
STP facility: Create automatic transfers from debt to equity during market downtime.
Conclusion: Maximizing Your Returns with the Best Mutual Fund for a Lump-Sum Investment
A lump sum investment in mutual funds is one of the easiest ways to invest in the stock market. You can start investing with a lower amount. The key is picking the right fund type, the right duration, and monitoring and rebalancing. Whichever fund you pick for a lump-sum investment, the logic is the same: clarity of purpose, discipline in holding, and awareness of tax rules.
FAQs
What is the minimum investment amount required for a lump sum investment in mutual funds?
In India, most mutual funds require at least ₹5,000 as a lump-sum investment. From the very first investment, you can top up the amount depending on the fund.
What is the tax implication of a lump-sum mutual fund investment in India?
Equity fund gains held for less than 1 year are taxed at 20% (STCG). Gains above ₹1.25 Lac for holdings over a year are taxable at 12.5% (LTCG). Debt fund gains in the post-April 2023 are taxed at your income slab rate.
Can NRIs invest a lump sum in Indian mutual funds?
Yes, under FEMA regulations, NRIs can invest in Indian mutual funds. They have to complete the KYC with their NRE or NRO account details and a valid passport.
Can I switch from SIP to a lump sum in mutual funds?
Yes. You can stop your SIP at any time and make a lump-sum payment into the same or another fund. Most platforms allow this without penalty, though exit loads may apply to units redeemed within 1 year.
This blog is for general informational and educational purposes only and does not constitute financial, investment, tax, or legal advice. The information is based on publicly available sources and market understanding at the time of writing and may change due to global developments. Past performance of markets during geopolitical events does not guarantee future results. Readers are encouraged to conduct their own research and consult qualified professionals before making investment decisions. Jainam Broking does not provide any assurance regarding outcomes based on this information.
