Fincash » Mutual Funds » Lump Sum Investment in Mutual Funds
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Do you know that you can invest a lump sum amount in Mutual Funds? If yes, then it's good. However, if no, then don’t worry. This article will guide you through the same. Lump sum investment in Mutual Funds refers to a situation when an individual invests money in Mutual Funds at one-time. Here, the deposit does not take place at multiple times. There is a lot of difference between the SIP and lump sum mode of investment. So, let us understand the concept of Lump sum investment in Mutual Funds, best mutual funds for lump sum investment, things to be considered during lump sum investment, Mutual Fund Lump sum return calculator, and other related aspects through this article.
Lump sum investment in Mutual Fund is a scenario where individuals invest in Mutual Funds for only once. However, in contrast to SIP mode of investment where individuals deposit small amounts in lump sum mode, individuals deposit a considerable amount. In other words, it is a one-shot technique of Investing in Mutual Funds. Lump sum mode of investing in suitable for investors who have excess funds that are lying ideal in their Bank account and are looking to for channels to earn more Income by investing in Mutual Funds.
Before you invest in Mutual Funds through lump sum mode, individuals need to consider various parameters such as AUM, investment amount, and much more. So, based on these parameters some of the best Mutual Funds for Lump sum investment are as follows.
Equity Funds are the schemes that invest their corpus in equity and equity-related instruments of various companies. These schemes are considered to be a good option for long-term investment. Though individuals can invest lump sum amount in equity funds yet the recommended technique of investing in equity funds is either through SIP or Systematic Transfer Plan (STP) mode. In STP mode, individuals first deposit a considerable money in Debt fund such as Liquid Funds and then the money is transferred at regular intervals in equity funds. Some of the Equity Mutual Funds that can be considered for investment are as follows.
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) ICICI Prudential Technology Fund Growth ₹129.22
↑ 0.97 ₹8,993 5,000 -3.5 2.1 -20.3 40.8 20.6 -23.2 TATA Digital India Fund Growth ₹30.7202
↑ 0.23 ₹6,766 5,000 -2.1 2.8 -19.5 35.2 20.4 -23.3 SBI Technology Opportunities Fund Growth ₹136.309
↑ 0.77 ₹2,862 5,000 -1.6 6.2 -12.2 34.5 19.8 -15.5 Aditya Birla Sun Life Digital India Fund Growth ₹114.43
↑ 0.96 ₹3,338 1,000 -1.8 4.4 -16.9 37.7 19.7 -21.6 Principal Emerging Bluechip Fund Growth ₹183.316
↑ 2.03 ₹3,124 5,000 2.9 13.6 38.9 21.9 19.2 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Mar 23
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Debt Funds invest their fund money in different Fixed Income instruments like treasury bills, corporate Bonds, and much more. These schemes are considered as a good option for short and medium term. Many individuals choose to invest lump sum money in Debt Mutual Funds. Some of the Best Debt Funds that can be chosen for lump sum investment are as follows.
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2022 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Aditya Birla Sun Life Medium Term Plan Growth ₹31.9792
↑ 0.03 ₹1,652 1,000 1.6 3.5 21.1 13.4 24.8 8.15% 2Y 9M 11D 4Y 3M 11D BOI AXA Credit Risk Fund Growth ₹10.6597
↑ 0.00 ₹161 5,000 1.2 2.5 130.5 12.1 143.1 7% 9M 10M 24D UTI Dynamic Bond Fund Growth ₹26.126
↑ 0.03 ₹469 10,000 1.5 2.8 12.1 10 10.1 7.11% 2Y 11M 19D 4Y 1M 24D Franklin India Credit Risk Fund Growth ₹24.7387
↑ 0.01 ₹134 5,000 2.6 4.8 4 9.9 6.5 0% Baroda Pioneer Credit Risk Fund Growth ₹18.5667
↑ 0.02 ₹180 5,000 1.6 3.2 4.8 9.6 4.6 8.48% 1Y 5M 1D 3Y 3M 7D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Mar 23
Hybrid funds also known as Balanced Fund invest their money in both equity and fixed income instruments. These schemes are suitable for individuals looking for Capital generation along with regular income. Also known as balanced schemes, individuals can choose to invest lump sum amount in hybrid schemes. Some of the best hybrid funds for lump sum investment are listed below.
Fund NAV Net Assets (Cr) Min Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) ICICI Prudential Multi-Asset Fund Growth ₹474.06
↑ 2.85 ₹16,450 5,000 -1.3 6.9 9.4 31.4 13.5 16.8 ICICI Prudential Equity and Debt Fund Growth ₹236.1
↑ 1.56 ₹21,233 5,000 -2.5 4 4.5 30.9 13.6 11.7 BOI AXA Mid and Small Cap Equity and Debt Fund Growth ₹22.15
↑ 0.33 ₹380 5,000 -4 -0.1 -0.5 29.8 9.5 -4.8 HDFC Balanced Advantage Fund Growth ₹320.704
↑ 2.60 ₹51,042 5,000 -1.5 6.6 12.7 29.3 12.2 18.8 Kotak Equity Hybrid Fund Growth ₹40.527
↑ 0.31 ₹3,269 5,000 -2.9 1.1 2.7 26 11.2 5 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Mar 23
The Portfolio of an index fund consists of the shares and other instruments in the same proportion as they are in the index. In other words, these schemes mimic the performance of an index. These are passively managed funds and can be considered as a good option for lump sum investment. Some of the best Index Funds that can be chosen for lump sum investment are as follows.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2022 (%) Nippon India Index Fund - Sensex Plan Growth ₹28.9425
↑ 0.17 ₹375 -5.2 2.6 0.5 25.2 12.3 5 LIC MF Index Fund Sensex Growth ₹107.8
↑ 0.64 ₹69 -5.3 2.7 0.2 24.6 12 4.6 ICICI Prudential Nifty Index Fund Growth ₹168.361
↑ 1.27 ₹3,977 -6.1 1.6 -0.7 26.1 11.6 5.2 UTI Nifty Index Fund Growth ₹114.8
↑ 0.86 ₹9,475 -6.1 1.6 -0.6 26.4 12 5.3 Franklin India Index Fund Nifty Plan Growth ₹135.813
↑ 1.01 ₹482 -6.1 1.5 -0.8 25.4 11.2 4.9 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Mar 23
"The primary investment objective of the Scheme is to seek capital appreciation by investing predominantly in units of MLIIF - WGF. The Scheme may, at the discretion of the Investment Manager, also invest in the units of other similar overseas mutual fund schemes, which may constitute a significant part of its corpus. The Scheme may also invest a certain portion of its corpus in money market securities and/or units of money market/liquid schemes of DSP Merrill Lynch Mutual Fund, in order to meet liquidity requirements from time to time. However, there is no assurance that the investment objective of the Scheme will be realized." DSP BlackRock World Gold Fund is a Equity - Global fund was launched on 14 Sep 07. It is a fund with High risk and has given a Below is the key information for DSP BlackRock World Gold Fund Returns up to 1 year are on ICICI Prudential Regular Gold Savings Fund (the Scheme) is a fund of funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund (IPru Gold ETF).
However, there can be no assurance that the investment objectives of the Scheme will be realized. ICICI Prudential Regular Gold Savings Fund is a Gold - Gold fund was launched on 11 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Regular Gold Savings Fund Returns up to 1 year are on To generate returns that closely correspond to returns generated by Axis Gold ETF. Axis Gold Fund is a Gold - Gold fund was launched on 20 Oct 11. It is a fund with Moderately High risk and has given a Below is the key information for Axis Gold Fund Returns up to 1 year are on The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by Reliance ETF Gold BeES. Nippon India Gold Savings Fund is a Gold - Gold fund was launched on 7 Mar 11. It is a fund with Moderately High risk and has given a Below is the key information for Nippon India Gold Savings Fund Returns up to 1 year are on The scheme seeks to provide returns that closely correspond to returns provided by SBI - ETF Gold (Previously known as SBI GETS). SBI Gold Fund is a Gold - Gold fund was launched on 12 Sep 11. It is a fund with Moderately High risk and has given a Below is the key information for SBI Gold Fund Returns up to 1 year are on 1. DSP BlackRock World Gold Fund
CAGR/Annualized
return of 3.8% since its launch. Ranked 11 in Global
category. Return for 2022 was -7.7% , 2021 was -9% and 2020 was 31.4% . DSP BlackRock World Gold Fund
Growth Launch Date 14 Sep 07 NAV (29 Mar 23) ₹17.7249 ↑ 0.40 (2.30 %) Net Assets (Cr) ₹778 on 28 Feb 23 Category Equity - Global AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk High Expense Ratio 1.38 Sharpe Ratio -0.61 Information Ratio -0.05 Alpha Ratio -6.02 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,719 29 Feb 20 ₹12,538 28 Feb 21 ₹15,300 28 Feb 22 ₹16,590 28 Feb 23 ₹14,139 Returns for DSP BlackRock World Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 29 Mar 23 Duration Returns 1 Month 14.7% 3 Month 8.9% 6 Month 38.6% 1 Year -4.5% 3 Year 10.6% 5 Year 10.2% 10 Year 15 Year Since launch 3.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 -7.7% 2021 -9% 2020 31.4% 2019 35.1% 2018 -10.7% 2017 -4% 2016 52.7% 2015 -18.5% 2014 -3% 2013 -41.5% Fund Manager information for DSP BlackRock World Gold Fund
Name Since Tenure Jay Kothari 1 Mar 13 10.01 Yr. Data below for DSP BlackRock World Gold Fund as on 28 Feb 23
Equity Sector Allocation
Sector Value Basic Materials 94.91% Asset Allocation
Asset Class Value Cash 2.18% Equity 94.99% Debt 0% Other 2.83% Top Securities Holdings / Portfolio
Name Holding Value Quantity BGF World Gold I2
Investment Fund | -98% ₹765 Cr 2,631,043 Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -2% ₹16 Cr Net Receivables/Payables
CBLO | -0% -₹3 Cr 2. ICICI Prudential Regular Gold Savings Fund
CAGR/Annualized
return of 5.8% since its launch. Return for 2022 was 12.7% , 2021 was -5.4% and 2020 was 26.6% . ICICI Prudential Regular Gold Savings Fund
Growth Launch Date 11 Oct 11 NAV (29 Mar 23) ₹19.0244 ↑ 0.15 (0.79 %) Net Assets (Cr) ₹672 on 28 Feb 23 Category Gold - Gold AMC ICICI Prudential Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.33 Sharpe Ratio 0.38 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-15 Months (2%),15 Months and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,821 29 Feb 20 ₹13,543 28 Feb 21 ₹14,553 28 Feb 22 ₹15,689 28 Feb 23 ₹17,004 Returns for ICICI Prudential Regular Gold Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 29 Mar 23 Duration Returns 1 Month 7% 3 Month 8.1% 6 Month 18% 1 Year 14.6% 3 Year 10.2% 5 Year 12.6% 10 Year 15 Year Since launch 5.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.7% 2021 -5.4% 2020 26.6% 2019 22.7% 2018 7.4% 2017 0.8% 2016 8.9% 2015 -5.1% 2014 -9.2% 2013 -6.7% Fund Manager information for ICICI Prudential Regular Gold Savings Fund
Name Since Tenure Manish Banthia 27 Sep 12 10.43 Yr. Nishit Patel 29 Dec 20 2.17 Yr. Data below for ICICI Prudential Regular Gold Savings Fund as on 28 Feb 23
Asset Allocation
Asset Class Value Cash 2.4% Other 97.6% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Pru Gold ETF
- | -100% ₹672 Cr 137,868,621
↑ 225,941 Treps
CBLO/Reverse Repo | -0% ₹2 Cr Net Current Assets
Net Current Assets | -0% -₹2 Cr 3. Axis Gold Fund
CAGR/Annualized
return of 5.3% since its launch. Return for 2022 was 12.5% , 2021 was -4.7% and 2020 was 26.9% . Axis Gold Fund
Growth Launch Date 20 Oct 11 NAV (29 Mar 23) ₹18.0003 ↑ 0.18 (1.03 %) Net Assets (Cr) ₹291 on 28 Feb 23 Category Gold - Gold AMC Axis Asset Management Company Limited Rating ☆ Risk Moderately High Expense Ratio 0.3 Sharpe Ratio 0.48 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,780 29 Feb 20 ₹13,619 28 Feb 21 ₹14,797 28 Feb 22 ₹15,942 28 Feb 23 ₹17,392 Returns for Axis Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 29 Mar 23 Duration Returns 1 Month 7% 3 Month 9% 6 Month 18.4% 1 Year 15.5% 3 Year 10.1% 5 Year 13.4% 10 Year 15 Year Since launch 5.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.5% 2021 -4.7% 2020 26.9% 2019 23.1% 2018 8.3% 2017 0.7% 2016 10.7% 2015 -11.9% 2014 -11.4% 2013 -7.5% Fund Manager information for Axis Gold Fund
Name Since Tenure Aditya Pagaria 9 Nov 21 1.3 Yr. Data below for Axis Gold Fund as on 28 Feb 23
Asset Allocation
Asset Class Value Cash 3.7% Other 96.3% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Gold ETF
- | -98% ₹285 Cr 60,000,000
↑ 200,000 Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -2% ₹6 Cr Net Receivables / (Payables)
CBLO | -0% -₹1 Cr 4. Nippon India Gold Savings Fund
CAGR/Annualized
return of 7.4% since its launch. Return for 2022 was 12.3% , 2021 was -5.5% and 2020 was 26.6% . Nippon India Gold Savings Fund
Growth Launch Date 7 Mar 11 NAV (29 Mar 23) ₹23.5927 ↑ 0.13 (0.55 %) Net Assets (Cr) ₹1,447 on 28 Feb 23 Category Gold - Gold AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderately High Expense Ratio 0.39 Sharpe Ratio 0.38 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (2%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,735 29 Feb 20 ₹13,551 28 Feb 21 ₹14,557 28 Feb 22 ₹15,696 28 Feb 23 ₹17,009 Returns for Nippon India Gold Savings Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 29 Mar 23 Duration Returns 1 Month 6.9% 3 Month 8.7% 6 Month 18% 1 Year 14.3% 3 Year 9.5% 5 Year 12.6% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.3% 2021 -5.5% 2020 26.6% 2019 22.5% 2018 6% 2017 1.7% 2016 11.6% 2015 -8.1% 2014 -9.8% 2013 -7.6% Fund Manager information for Nippon India Gold Savings Fund
Name Since Tenure Mehul Dama 6 Nov 18 4.32 Yr. Data below for Nippon India Gold Savings Fund as on 28 Feb 23
Asset Allocation
Asset Class Value Cash 1.25% Other 98.75% Top Securities Holdings / Portfolio
Name Holding Value Quantity Nippon India ETF Gold BeES
- | -100% ₹1,447 Cr 305,104,419
↓ -1,400,000 Triparty Repo
CBLO/Reverse Repo | -0% ₹5 Cr Net Current Assets
Net Current Assets | -0% -₹5 Cr Cash Margin - Ccil
CBLO | -0% ₹0 Cr 5. SBI Gold Fund
CAGR/Annualized
return of 5.2% since its launch. Return for 2022 was 12.6% , 2021 was -5.7% and 2020 was 27.4% . SBI Gold Fund
Growth Launch Date 12 Sep 11 NAV (29 Mar 23) ₹17.9556 ↑ 0.21 (1.18 %) Net Assets (Cr) ₹1,266 on 28 Feb 23 Category Gold - Gold AMC SBI Funds Management Private Limited Rating ☆☆ Risk Moderately High Expense Ratio 0.28 Sharpe Ratio 0.5 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Growth of 10,000 investment over the years.
Date Value 28 Feb 18 ₹10,000 28 Feb 19 ₹10,755 29 Feb 20 ₹13,656 28 Feb 21 ₹14,681 28 Feb 22 ₹15,795 28 Feb 23 ₹17,256 Returns for SBI Gold Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 29 Mar 23 Duration Returns 1 Month 6.8% 3 Month 8.8% 6 Month 18.1% 1 Year 14.9% 3 Year 8.9% 5 Year 12.8% 10 Year 15 Year Since launch 5.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 12.6% 2021 -5.7% 2020 27.4% 2019 22.8% 2018 6.4% 2017 3.5% 2016 10% 2015 -8.1% 2014 -10.2% 2013 -6.6% Fund Manager information for SBI Gold Fund
Name Since Tenure Raviprakash Sharma 12 Sep 11 11.47 Yr. Data below for SBI Gold Fund as on 28 Feb 23
Asset Allocation
Asset Class Value Cash 1.64% Other 98.36% Top Securities Holdings / Portfolio
Name Holding Value Quantity SBI Gold ETF
- | -100% ₹1,265 Cr 259,026,355
↑ 1,552,798 Treps
CBLO/Reverse Repo | -0% ₹4 Cr Net Receivable / Payable
CBLO | -0% -₹3 Cr
Before investing in Mutual Funds individuals need to take care a lot of parameters. It includes:
When it comes to lump sum investing, individuals need to always look for Market timings especially with respect to equity-based funds. A good timing to invest lump sum is when the markets are low and there’s a scope that they will start appreciating soon. However, in case if the markets are already at peak then, it is better to stay off from lump sum investment.
Diversification is also an important aspect that needs to be considered before investing lump sum. Individuals in case of lump sum investment should diversify their investments by spreading into multiple avenues. This will help to ensure that their overall portfolio performs well even if one of the schemes doesn’t perform.
Any investment that individuals do is to attain a particular objective. Therefore, individuals should check whether the scheme’s approach is in-line with the investor’s objective. Here, individuals should look for various parameters such as CAGR returns, Absolute returns, the impact of taxation and much more before investing in the scheme.
Individuals should do their Redemption at the correct time in lump sum investment. Though it can be as per the investment objective yet; individuals should do a timely review of the scheme in which they are planning to invest. However, they also need to hold their investments for a longer duration so that they can enjoy maximum benefits.
Mutual Fund lump sum return calculator helps individuals to show how the lump sum investment of an individual grows over a given timeframe. Some of the data that needs to input in the lump sum calculator includes the tenure of the investment, initial investment amount, long-term expected growth rate and much more. An illustration of the Mutual Fund lump sum return calculator is as follows.
Lump Sum Investment: INR 25,000
Investment Tenure: 15 Years
Long-term Growth Rate (Approx.): 15%
Expected Returns as per Lump Sum Calculator: INR 2,03,427
Net Profit on the Investment: INR 1,78,427
Thus, the above calculation shows that the net profit on the investment on your investment is INR 1,78,427 while the total value of your investment is INR 2,03,427.
Similar to SIP, Lump Sum Investment also has its own set of advantages and disadvantages. So, let us look at these advantages and disadvantages.
The advantages of Lump Sum investment are as follows.
The disadvantages of Lump Sum investment are:
Thus, from the above pointers, it can be said that lump sum mode is also a good way to invest in Mutual Funds. However, individuals need to be confident while investing a lump sum amount in the scheme. If not, they can choose SIP mode of investment. In addition, people should understand the scheme’s modalities before investing. If required, they can even consult a financial advisor. This will help them to ensure that their money is safe and their objectives are accomplished on time.