Lumpsum investing in mutual funds provides a chance for investors to invest a large sum of money at once. If timed before or at the beginning of a market upswing, it can help capitalise on market growth. Lumpsum investments are suitable for investors with available capital and a long-term growth vision.
This article examines the ideal mutual funds for lumpsum investors based on the growing industry, expected returns, and performance trends. Also learn how tools like the lumpsum calculator can help you estimate future returns more accurately.
Top-performing sectors
The small-cap funds sector stands out for lumpsum investors, as these funds have the potential for high growth driven by emerging companies. Mutual funds investing in this space can yield excellent returns and attract those investors who are not hazed by the short-term volatility of the markets.
The infrastructure segment is also an underrated star, with government spending and urban growth driving its potential for capital appreciation. Public Sector Undertakings (PSUs) are also a stable and growing option, propelled by policy reforms and economic revival. These categories are the backbone of the top-performing mutual funds for lumpsum investing.
Top mutual funds and their returns
Going by recent trends, a few funds stand out for lumpsum investors:
● Nippon India Small Cap Fund (Direct) delivered 30.13[SN1]% returns over 5 years and 24.44% since inception, i.e., January 1, 2013.
● Nippon India Growth Fund (Mid Cap) (Direct) offered 24.77[SN2]% returns over 5 years and 17.94% since inception, i.e., January 1, 2013.
● The Quant Infrastructure Fund Direct Growth has a 5-year equity–infrastructure return of 36.8% (as of March 24, 2025) and an AUM of ₹2,914 crore.
These top mutual funds point out the possibility of high returns but note that past results cannot guarantee future performance.
Performance insights
Consistency in performance is what lumpsum investors require.
● The high returns of small-cap funds are accompanied by volatility, which is ideal for risk-taking investors with a long-term horizon.
● The consistent performance of mid-cap funds makes it ideal for investors seeking quality mid-cap exposure with a moderate-to-high risk appetite.
● Sectoral funds enjoy sector-specific tailwinds but are subject to cyclical volatility.
As an investor, it is a must to balance expense ratios and exit loads against gains, as they can reduce net returns.
Use a lumpsum calculator to invest smartly
A lumpsum calculator is a must-have tool for planning your future. Just enter the amount you want to invest, the expected return rate, and how long you plan to stay invested. Now, click on calculate, and it will show you how much your one-time investment could grow over the chosen period.
It’s great for comparing different funds, adjusting goals, or just getting a clear picture of what to expect. You can find it online on most mutual fund websites and use it for free to make decision-making easier.
Balancing risks and returns in lumpsum investing
Lumpsum investments do have market timing risks. If you invest at market highs, be prepared for possible short-term losses as well.
As an investor, it makes sense to diversify across sectors and funds to minimise risk. A long-term approach of about 5 to 10 years and taking advice from experienced managers improves success. Also consider the tax revisions of 12.5% long-term capital gains above ₹1.25 lakh.
To wrap up
Lumpsum investing can offer strong returns when you choose the right mutual fund schemes. Investment options like small-cap funds and sectors such as infrastructure and PSUs offer solid long-term potential, but make sure to study performance trends and utilise tools like lumpsum calculators to make confident, data-backed decisions.
