Lumpsum Investment in mutual funds can be a powerful way to grow your wealth, especially when you choose the right funds tailored to your financial goals. If you’re looking for the best mutual funds for lumpsum investment in 2025, it’s essential to choose funds with strong historical performance, consistent returns, and reliable fund management. With market conditions evolving, selecting the right mutual fund can help maximize your returns while managing risk effectively.
The investment landscape is evolving, with new opportunities and challenges emerging in the market. Whether you’re planning for long-term wealth creation, retirement, or achieving specific financial milestones, selecting the best mutual funds for lumpsum investments is crucial.
If you’re considering ELSS funds for their tax benefits, it’s also a good idea to plan your taxes wisely before the financial year ends. Check out our article on Tax Saving Planning Before March 31 for strategies to maximize your savings
Overview of Contents
Is This the Right Time to Invest a Lumpsum Amount in Mutual Funds?
The market is currently undergoing a correction after reaching an all-time high. As of now, the market has corrected 14.37% from its peak levels. The Nifty 50 reached an all-time high of 26,280 to 26,500, while the Sensex saw a decline from 86,000 to 74,454, reflecting a notable correction. Similarly, Nifty Bank dropped from 54,500 to 47,900. Meanwhile, Midcap and Smallcap indices have fallen by 20% to 25%, making this a potential opportunity to invest in lumpsum.
With the market offering attractive valuations after the correction, 2025 could be the right time to add lumpsum investments in mutual funds. This article will guide you in selecting the best mutual funds for lumpsum investment in 2025 to maximize growth and stability.
Best Mutual Funds for Lumpsum Investment in 2025 to Maximize Returns
We have carefully analyzed mutual funds based on their 3-year, 5-year, and 10-year CAGR returns to help investors make informed decisions about lumpsum investments. These funds have demonstrated strong historical performance and a well-balanced risk-reward profile, making them suitable for long-term wealth creation. The returns mentioned are compounded annual growth rates (CAGR), which provide a clearer picture of their growth potential over time. Given the current market correction, this could be a strategic opportunity to invest in these funds for optimal returns.
All the information provided here is based on our analysis of past performance and market trends. We have thoroughly reviewed previous years’ return records to compile this list. However, before making any investment decisions, we strongly recommend conducting your own research or consulting a certified financial advisor. This content is purely for educational purposes and should not be considered financial advice.
Investing a lumpsum in mutual funds is a great way to build wealth over time. However, if you’re exploring other ways to grow your money in the stock market, you might find this guide on Top Ways to Make Money in the Stock Market helpful.
| No | Fund Name | Category | 3-Year Return | 5-Year Return | 10-Year Return |
|---|---|---|---|---|---|
| ① | HDFC Mid-Cap Opportunities Fund | Midcap | 26.86 | 25.04 | 20.65 |
| ② | Nippon India Smallcap Fund | Smallcap | 22.8% | 29.5% | 20.5% |
| ③ | Motilal Oswal Midcap Fund | Midcap | 29.3% | 27.4% | 18.3% |
| ④ | Nippon India Multi Cap Fund Direct Growth | Multicap | 24.82% | 22.02% | 16.26% |
| ⑤ | Motilal Oswal Nasdaq 100 Fund of Fund | Global | 24.9% | 24.1% | NA |
| ⑥ | Parag Parikh Flexicap Fund | Flexicap | 19.1% | 24.0% | 18.1% |
| ⑦ | Nippon India Largecap Fund | Largecap | 18.7% | 18.8% | 13.5% |
① HDFC Mid-Cap Opportunities Fund – Direct Plan Growth
HDFC Mid-Cap Opportunities Direct Plan Growth is an equity mutual fund scheme launched by HDFC Mutual Fund, designed for investors seeking long-term capital appreciation through investments in mid-sized companies. This scheme has been in existence since 10th December 1999 and has consistently delivered strong returns over various market cycles.
| Fund Manager | Chirag Setalvad |
| Asset Under Management (AUM) | ₹7,57,067 Cr |
| Latest NAV (as of 24 Feb 2025) | ₹184.08 |
| Minimum SIP Investment | ₹100 |
| Minimum Lumpsum Investment | ₹100 |
| Exit Load | 1% if redeemed within 1 year |
| Risk Level | Very High |
Performance & Returns
HDFC Mid-Cap Opportunities Fund has delivered consistent returns over different time frames, making it an attractive choice for long-term investors.
- 3-Year Return: 26.86% CAGR
- 5-Year Return: 25.04% CAGR
- 10-Year Return: 20.65% CAGR
Investment Strategy & Portfolio Allocation
HDFC Mid-Cap Opportunities Fund primarily invests in mid-sized companies with high growth potential. These companies tend to be more volatile than large-cap stocks, but they also offer greater opportunities for wealth creation in the long run.
The fund follows a diversified investment approach, selecting stocks from various sectors to balance risk and maximize returns. The key sectors where the fund is currently invested include:
| Sector | Allocation (%) |
|---|---|
| Financial Sector | 23.6% |
| Healthcare | 13.0% |
| Services | 9.7% |
| Automobile | 9.2% |
| Technology | 8.8% |
| Capital Goods | 7.5% |
| Consumer Staples | 6.2% |
| Others | 22.1% |
The fund maintains a 91.9% allocation in equities, ensuring strong market participation, while 8.1% is held in cash, providing liquidity for strategic adjustments during market fluctuations.
Who Should Invest?
✅ Have a long-term investment horizon (5+ years)
✅ Can tolerate higher market volatility for potentially higher returns
✅ Want diversified exposure to midcap stocks across multiple sectors
✅ Are looking for strong wealth creation opportunities
With its diversified portfolio, strong management, and impressive historical returns, HDFC Mid-Cap Opportunities Fund remains one of the best choices for lumpsum investments in 2025.
② Nippon India Small Cap Fund – Direct Plan Growth
Nippon India Small Cap Fund Direct Growth is an equity mutual fund scheme launched by Nippon India Mutual Fund. The fund was introduced on 30th June 1995 and has gained popularity among investors looking for high-growth opportunities in the small-cap segment.
| Fund Managers | Samir Rachh, Dhrumil Shah |
| Asset Under Management (AUM) | ₹5,13,160 Cr |
| Latest NAV (as of 24 Feb 2025) | ₹162.22 |
| Minimum SIP Investment | ₹100 |
| Minimum Lumpsum Investment | ₹100 |
| Exit Load | 1% if redeemed within 1 year |
| Risk Level | Very High |
Performance & Returns
Nippon India Small Cap Fund has shown outstanding returns, outperforming many peers in the small-cap category.
- 1-Year Return: 1.4%
- 3-Year Return: 24.7% CAGR
- 5-Year Return: 29.7% CAGR
For comparison, the category average returns are:
- 1-Year: -0.6%
- 3-Year: 19.2%
- 5-Year: 24.2%
The Nippon India Small Cap Fund maintains a high equity exposure of 94.9%, indicating a strong focus on equity investments. Conversely, the fund holds 5.0% in cash, suggesting a relatively small portion of assets kept in liquid form.
| Sector | Percentage (%) |
|---|---|
| Others | 31.8 |
| Capital Goods | 19.1 |
| Financial | 11.8 |
| Consumer Staples | 10.2 |
| Services | 10.0 |
| Chemicals | 8.7 |
| Healthcare | 8.3 |
Who Should Invest?
This fund is suitable for investors who:
✅ Are willing to take on high risk for higher potential returns
✅ Have a long-term investment horizon (5+ years)
✅ Want diversified exposure to small-cap stocks
✅ Are looking to maximize wealth creation in the high-growth small-cap segment
With its robust investment strategy, strong historical performance, and sector diversification, Nippon India Small Cap Fund is an excellent choice for long-term investors looking for high-growth opportunities. However, small-cap investments are inherently volatile, and it is recommended to conduct thorough research or consult with a financial advisor before investing.
③ Motilal Oswal Midcap Fund – Direct Plan Growth
Motilal Oswal Midcap Fund Direct Growth is an equity mutual fund scheme launched by Motilal Oswal Mutual Fund. The fund was introduced on 29th December 2009 and focuses on investing in high-quality mid-cap companies with strong growth potential and competitive advantages.
- Equity Exposure: 75.6%
- Cash Holdings: 24.4%
| Feature | Details |
|---|---|
| Fund Managers | Abhiroop Mukherjee, Akash Singhania, Siddharth Bothra |
| Asset Under Management (AUM) | ₹93,341 Cr |
| Latest NAV (as of 24 Feb 2025) | ₹104.54 |
| Minimum SIP Investment | ₹500 |
| Minimum Lumpsum Investment | ₹500 |
| Exit Load | 1% if redeemed within 365 days |
| Risk Level | Very High |
Performance & Returns
Motilal Oswal Midcap Fund has consistently delivered strong returns, outperforming many other mid-cap funds.
- 1-Year Return: 18.6%
- 3-Year Return: 31.1% CAGR
- 5-Year Return: 27.6% CAGR
For comparison, the category average returns are:
- 1-Year: 20.3%
- 3-Year: 21.3%
Sector Breakdown
- Technology: 32.2%
- Capital Goods: 17.7%
- Others: 14.9%
- Consumer Discretionary: 11.9%
- Services: 10.8%
- Automobile: 6.7%
- Healthcare: 5.8%
Fund Rank & Risk Metrics
The fund is ranked #19 in India based on total assets and has a strong fund management team led by:
- Ajay Khandelwal (Since Oct 2024)
- Niket Shah (Since Mar 2018)
- Rakesh Shetty (Since Nov 2022)
- Sunil Sawant (Since Jul 2024)
Its performance is measured using key financial ratios:
- P/E Ratio: 23.8
- P/B Ratio: 3.4%
Who Should Invest?
This fund is suitable for investors who:
✅ Are looking for long-term capital appreciation
✅ Have a high-risk appetite and can handle mid-cap volatility
✅ Want to invest in quality mid-cap stocks with high-growth potential
✅ Prefer a focused portfolio with a limited number of high-conviction stocks
Motilal Oswal Midcap Fund is an excellent choice for long-term investors looking for mid-cap growth opportunities. With a disciplined investment strategy, strong past performance, and a high-growth portfolio, this fund is ideal for aggressive investors who can withstand market fluctuations for higher returns. However, as mid-cap stocks tend to be volatile, it is recommended to invest with a long-term horizon and review the fund’s performance periodically.
④ Nippon India Multi Cap Fund Direct Growth
Nippon India Multi Cap Fund Direct Growth is an equity mutual fund scheme launched by Nippon India Mutual Fund. The fund was introduced on 30th June 1995 and follows a multi-cap investment strategy, investing across large-cap, mid-cap, and small-cap companies with strong growth potential.
Fund Overview
- Fund Managers: Sailesh Raj Bhan (Since Jan 2013), Ashutosh Bhargava (Since Sep 2021)
- Asset Under Management (AUM): ₹5,13,160 Cr
- Latest NAV (as of 24 Feb 2025): ₹280.84
- Minimum SIP Investment: ₹100
- Minimum Lumpsum Investment: ₹100
- Exit Load: 1% on units exceeding 10% if redeemed within 12 months
- Risk Level: Very High
Performance & Returns
Nippon India Multi Cap Fund has delivered consistent long-term returns, positioning itself as a strong performer in the multi-cap category.
- 1-Year Return: 7.2%
- 3-Year Return: 24.8% CAGR
- 5-Year Return: 22.0% CAGR
For comparison, the category average returns are:
- 1-Year: 18.4%
Investment Strategy & Portfolio Allocation
Nippon India Multi Cap Fund aims to invest in high-growth sectors and industries that are driving India’s economic growth, benefiting from FDI inflows, infrastructure expansion, and economic reforms. It follows a diversified multi-cap approach, allocating funds across companies of various sizes.
- Equity Exposure: 97.4%
- Cash Holdings: 2.6%
Sector Breakdown:
- Financials: 29.0%
- Others: 21.7%
- Services: 16.8%
- Capital Goods: 10.6%
- Energy: 8.5%
- Healthcare: 7.2%
- Construction: 6.3%
The fund focuses on companies that benefit from structural economic changes, strong fundamentals, and long-term growth potential.
Fund Rank & Risk Metrics
The fund is ranked among India’s top multi-cap funds and is actively managed by experienced fund managers:
- Sailesh Raj Bhan (Since Jan 2013)
- Ashutosh Bhargava (Since Sep 2021)
Who Should Invest?
This fund is suitable for investors who:
✅ Want exposure to large, mid, and small-cap stocks for diversified growth
✅ Have a high-risk appetite and a long-term investment horizon
✅ Prefer a flexible investment approach across multiple sectors and industries
Nippon India Multi Cap Fund is a well-diversified and actively managed fund with long-term growth potential. Its strategy of investing across various market caps and high-growth sectors makes it an attractive option for investors seeking capital appreciation. However, as it is a high-risk investment, it is best suited for investors who can tolerate volatility and stay invested for the long term.
⑤ Motilal Oswal Nasdaq 100 Fund of Fund
Motilal Oswal Nasdaq 100 FOF Direct Growth is an equity international mutual fund launched by Motilal Oswal Mutual Fund. This scheme was introduced on 29th December 2009 and primarily invests in units of the Motilal Oswal Nasdaq 100 ETF, offering exposure to the top 100 non-financial companies listed on the Nasdaq stock exchange.
| Feature | Details |
|---|---|
| Fund Manager | Ashish Agarwal (Since Oct 2024) |
| Asset Under Management (AUM) | ₹93,341 Cr |
| Latest NAV (as of 25 Feb 2025) | ₹40.98 |
| Minimum SIP Investment | Not Supported (Currently Restricted) |
| Minimum Lumpsum Investment | Not Supported (Currently Restricted) |
| Expense Ratio | 0.24% (Inclusive of GST) |
| Exit Load | 1% if redeemed within 15 days |
| Taxation | Returns taxed as per investor's income tax slab |
Performance & Returns
Motilal Oswal Nasdaq 100 FOF has delivered strong long-term returns, consistently outperforming the category average.
| Period | Fund Returns | Category Average |
|---|---|---|
| 1-Year | 32.1% | 21.4% |
| 3-Year | 22.9% | 12.1% |
| 5-Year | 23.9% | 9.8% |
| Since Inception | 25.3% | NA |
The fund ranks #19 in India in terms of total assets.
Investment Strategy & Portfolio Allocation
The fund invests 100% in equity by tracking the Nasdaq 100 Total Return Index, providing investors exposure to top global tech and growth companies.
- Equity Exposure: 100.1%
- Debt Exposure: 0.2%
- Cash Holdings: -0.4%
The fund offers exposure to companies like Apple, Microsoft, Amazon, Google, Tesla, and Meta, benefiting from the growth of the U.S. technology and innovation-driven sectors.
Who Should Invest?
This fund is suitable for investors who:
✅ Want international diversification in their portfolio
✅ Are looking for exposure to Nasdaq-listed companies
✅ Have a high-risk appetite and can stay invested long-term
The fund house has currently restricted new SIP and lump sum investments in this fund. Existing investors can continue holding their investments, but new investments are not allowed at the moment.
Motilal Oswal Nasdaq 100 FOF is a strong international equity fund providing long-term growth potential by investing in Nasdaq-listed companies. However, given the investment restriction, investors looking for new investments might need to explore alternative options.
⑥ Parag Parikh Flexicap Fund
Parag Parikh Flexi Cap Fund Direct Growth is an equity mutual fund launched by PPFAS Mutual Fund on 10th October 2012. This flexi-cap fund invests across large-cap, mid-cap, and small-cap stocks, aiming for long-term capital appreciation through a diversified portfolio.
Performance & Returns
Parag Parikh Flexi Cap Fund has delivered consistent long-term returns, outperforming the category average.
| Period | Fund Returns | Category Average | Category Rank |
|---|---|---|---|
| 1-Year | 12.5% | 2.3% | 5 |
| 3-Year | 20.4% | 13.4% | 12 |
| 5-Year | 24.0% | 15.3% | 2 |
| Since Inception | 19.9% | NA | NA |
Fund Overview
| Feature | Details |
|---|---|
| Fund Managers | Raunak Onkar, Rajeev Thakkar, Raj Mehta |
| Asset Under Management (AUM) | ₹89,158 Cr |
| Latest NAV (as of 25 Feb 2025) | ₹84.29 |
| Minimum SIP Investment | ₹1,000 |
| Minimum Lumpsum Investment | ₹1,000 |
| Expense Ratio | 0.63% (Inclusive of GST) |
| Exit Load | 2% if redeemed within 365 days (for units above 10%) 1% if redeemed after 365 days but on or before 730 days |
| Taxation | Short-term capital gains (STCG) taxed at 20% (if redeemed before 1 year) Long-term capital gains (LTCG) taxed at 10% (if redeemed after 1 year) |
Portfolio Allocation
The fund follows a flexible investment strategy, investing across various sectors and market capitalizations.
- Equity Allocation: 79.1%
- Debt Allocation: 19.5%
- Cash Holdings: 1.4%
Equity Sector Allocation:
- Financial Services: 35.7%
- Energy: 15.7%
- Automobile: 10.9%
- Technology: 10.7%
- Consumer Staples: 6.5%
- Others: 4.6%
⑦ Nippon India Largecap Fund
Nippon India Large Cap Fund Direct Growth is an equity mutual fund launched by Nippon India Mutual Fund on 30th June 1995. This large-cap fund primarily invests in well-established companies with a strong market presence, aiming for long-term capital appreciation through equity investments.
| Feature | Details |
|---|---|
| Fund Managers | Sailesh Raj Bhan (Jan 2013–Present), Bhavik Dave (Aug 2024–Present) |
| Asset Under Management (AUM) | ₹5,13,160 Cr |
| Latest NAV (as of 25 Feb 2025) | ₹88.76 |
| Minimum SIP Investment | ₹100 |
| Minimum Lumpsum Investment | ₹100 |
| Expense Ratio | Not specified (inclusive of GST) |
| Exit Load | 1% if redeemed within 7 days |
Performance & Returns
Nippon India Large Cap Fund has delivered strong long-term returns, consistently outperforming the category average.
| Period | Fund Returns | Category Average | Category Rank |
|---|---|---|---|
| 1-Year | 4.8% | 1.8% | 10 |
| 3-Year | 19.6% | 12.8% | 2 |
| 5-Year | 19.2% | 15.3% | 4 |
| Since Inception | 15.9% | NA | NA |
Portfolio Allocation
The fund follows a sector-diversified strategy, predominantly investing in large-cap companies.
- Equity Allocation: 97.8%
- Cash Holdings: 2.2%
Equity Sector Allocation
- Financial Services: 32.3%
- Energy: 12.7%
- Technology: 9.9%
- Automobile: 5.9%
- Capital Goods: 5.4%
- Services: 10.9%
- Others: 17.6%
Who Should Invest?
This fund is ideal for investors who:
✅ Seek long-term capital appreciation through investments in large-cap companies
✅ Prefer sector diversification with a strong focus on financials, energy, and technology
✅ Are comfortable with high-risk investments for wealth creation over 5+ years
Nippon India Large Cap Fund is a top-performing large-cap fund, known for consistent returns and a well-diversified portfolio. Investors looking for stable yet high-growth opportunities in large-cap stocks may consider this fund, keeping in mind the exit load and market risks.