Top Mutual Funds for Lump Sum Investments in 2025

In the recent times, Systematic Investment Plan’s (SIP) investment became very popular among the investors. Still, if an investor is looking to invest a large sum of money at once then lump sum investments would be a perfect choice as it offers many benefits. To utilize a lump sum investment properly, it is very important to choose the right mutual fund. In this article we will learn about some of the top mutual funds for Lump sum investment in 2025.

Best Mutual Funds for Lump Sum Investments in 2025

1. SBI PSU Direct-Growth

This fund was launched on January 1, 2013, having AUM of Rs.4,703 crore. Over past three years, it has delivered an annualized returns of 33.27%.

It carries very high risk level because of its Investment strategy. The fund allocates 99.9% of its portfolio in equity and rest 6.1% in cash. The fund includes holding companies like State Bank of India, Power Grid, and GAIL (India). It has an expense ratio of 0.74%.

2. Motilal Oswal Midcap Fund Direct-Growth

This fund was launched on February 24, 2014 having AUM of Rs.18,604 crore. Over past three years, it has delivered an annualized returns of 33.19%.

This fund also carries very high risk. The fund allocates 99.4% of its portfolio in equity and rest 0.6% in cash. The fund includes holding companies like Polycab India, Coforge, and Kalyan Jewellers. It has an expense ratio of 0.54%.

3. ICICI Prudential Infrastructure Direct-Growth

This fund was launched on January 1, 2013 having AUM of Rs.6,423 crore. Over past three years, it has delivered an annualized returns of 31.68%.

This fund carries very high risk because of its investment strategy. The fund allocates 99.9% of its portfolio in equity and rest 3.6% in cash and 0.9% in debt. The fund includes holding companies like Larsen and Toubro, NTPC, and ICICI Bank . It has an expense ratio of 1.21%.

4. Aditya Birla Sun Life PSU Equity Fund Direct-Growth

This fund was launched on December 30, 2019 having AUM of Rs.5,895 crore. Over past three years, it has delivered an annualized returns of 31.59%. This fund carries very high risk because of its investment strategy. The fund allocates 95.6% of its portfolio in equity and remaining 4.4% in cash. The fund includes holding companies like State Bank of India, NTPC, and ONGC. It has an expense ratio of 0.53%.

5. LIC MF Infrastructure Fund Direct-Growth

This fund was launched on January 1, 2013 having AUM of Rs.750 crore. Over past three years, it has delivered an annualized returns of 31.39%. This fund also carries very high risk. The fund allocates 94.6% of its portfolio in equity and remaining 5.4% in cash. The fund includes holding companies like Garware Hi-Tech Films, Shakti Pumps, and REC. It has an expense ratio of 0.56%.

6. ICICI Prudential BHARAT 22 FOF Direct-Growth

This fund was launched on January 29, 2018 having AUM of Rs.2,183 crore. Over past three years, it has delivered an annualized returns of 31.37%. This fund carries very high risk because of its investment strategy. The fund allocates 99.4% of its portfolio in equity and rest 0.6% in cash. The fund includes holding companies like Bharat 22 ETF – Growth. It has an expense ratio of 0.12%.

7. Invesco India PSU Direct Equity-Growth

This fund was launched on January 1, 2013 having AUM of Rs.1,435 crore. Over past three years, it has delivered an annualized returns of 31.34%. This fund carries very high risk because of its investment strategy. The fund allocates 95.8% of its portfolio in equity and remaining 4.2% in cash. The fund includes holding companies like Bharat Electronics, Power Grid, and Bharat Petroleum. It has an expense ratio of 0.85%.

8. HDFC Infrastructure Direct Plan-Growth

This fund was launched on January 1, 2013 having AUM of Rs.2,607 crore. Over past three years, it has delivered an annualized returns of 30.06%. This fund carries very high risk. The fund allocates 93.6% of its portfolio in equity and rest 4.5% in cash. The fund includes holding companies like ICICI Bank, HDFC Bank, and L&T. It has an expense ratio of 1.09%.

9. DSP India T.I.G.E.R. (The Infrastructure Growth and Economic Reforms Fund) Direct-Growth

This fund was launched on January 1, 2013 having AUM of 5,645 crore. Over past three years, it has delivered an annualized returns of 30%.01%. This fund carries very high risk because of its investment strategy. The fund allocates 93.9% of its portfolio in equity and rest 5.3% in cash. The fund includes holding companies like NTPC, Siemens, and L&T. It has an expense ratio of 0.84%.

10. Bandhan Emerging Businesses Direct-Growth

This fund was launched on February 25, 2020 having AUM of Rs.8,489 crore. Over past three years, it has delivered an annualized returns of 27.09%. This fund carries very high risk because of its investment strategy. The fund allocates 90.7% of its portfolio in equity and remaining 9.3% in cash and 0.1% in debt. The fund includes holding companies like LT Foods, PCBL, and Cholamandalam Financial Holdings. It has an expense ratio of 0.40%.

Things to Consider Before Making a Lump Sum Investment

You should consider these factors before making a lump sum investment:

• Investment Horizon: Lump sum investments are appropriate for long-term investments, generally 10-15 years. These investments are used properly when provided with perfect time to compound.
• Market Conditions: Timing of lump sum investments is very important. Making investment when the market is at its high point may result in less return. Investors must conduct market conditions and make careful research before investing.
• Risk Profile: Lump sum investments consists of high risk, particularly in risky markets. These investments are better for investors with a better risk tolerance and a long horizon.
• Liquidity: A lump sum investment ties up large amounts of capital in a single instrument, thus making it less liquid. Investors need to assess their liquidity needs before investing in lump sum investments.
• Expenses: Investors must consider expenses like exit load, expense ratio, and management charges. These can greatly influence long-term returns.

Advantages of Lump Sum Investment

• Convenient: Lump sum investments are convenient, with investors paying a single amount rather than regular small payments.
• Low Expenses: Lesser transactions, so the associated costs are very low compared to SIP investments.
• High Return Potential: Lump Sum investments can make high returns with proper timing and market analysis.

Disadvantages of Lump Sum Investments

• Market Timing Risks: Lump sum investments are vulnerable to market fluctuations, and therefore proper timing is required. Market volatility in the short run can result in high gains or losses.
• Limited Flexibility: Dollar-cost averaging is not allowed in lump sum investment that can reduce risk. Investors are not able to make simple adjustments in their investment amounts based on market conditions.
• Higher Capital Requirements: It needs more initial capital, which can be an issue for some investors.

Lump sum investment in mutual funds may be an excellent option for those who have a considerable amount of capital to invest. One must consider market conditions, risk and liquidity needs before to investing. By investing in the most appropriate mutual funds for lump sum investment, investors may be able to achieve high long-term returns.