10 Best Mutual Funds For Long Term Lump Sum Investment in India 2022
Investing can grow your wealth and give you another source of income. Where investing can make wealth, investing also wants a balance of gains with risks. There are many choices for investments, from safe choices to risky investments. For investors, investing in lump-sum investment can be a significant financial decision. But here is the question: how to invest money in mutual funds? Investment in mutual funds is done in two ways, first is the lump-sum amount at once or at regular intervals every week, month or quarter.
However, Lump-sum investment means investing a considerable amount in mutual funds. Money is deposited as a one-time down payment in a lump-sum investment. Those with a considerable amount can invest a significant proportion in mutual funds. Lump-sum investment is opposite to the SIP mode. So, you can invest in lump sum investment either in equity funds or fixed income. It depends on the investment period, investment objective, and risk appetite.
How Can I Invest In Best Mutual Funds For Long Term Lump Sum Investment?
When considering investing in a lump sum mutual fund investment, you have to approach a financial advisor to contact the company directly. So, the essential thing to creating your mutual fund account is submitting your documents and filling up the KYC form. Now consider the situation of the market. Furthermore, always invest when the lump sum amount when the market is high, leading to future portfolio devaluation.
However, wait for the suitable condition when the market valuation is on the lower side. Meanwhile, you can invest your money in a debt fund, a traditional saving option, or a liquid fund. In addition, one other way to invest is the STP (systematic transfer plan). With STP, your lump sum money can be invested in liquid or market funds to transfer a fixed amount every month to an equity fund. It is somehow similar to the SIP. But always do your research first before investing and compare different mutual fund schemes.
Which Mutual Funds Are Best For Long Term Lumpsum Investment?
Here we discuss in detail the mutual funds that have long-term investments.
Axis Bluechip Fund Direct Plan-Growth
It is a large-cap mutual fund scheme from the Axis Mutual Fund. This fund has been working for nine years and was launched in 2013. This fund has more than ₹34,584 crores worth of assets, and it’s a medium-sized fund of its category. The expense ratio of this fund is 0.48%. It is a higher ratio than other Large-cap funds charge.
Furthermore, returns of Axis Bluechip Fund Direct Plan-Growth are 19.90%. The annual return of this fund is 17.14%. The fund will double the amount of money in the two years you invested. This fund has the advantage of controlling losses if there is a fall in the market. Axis bluechip fund has invested money in healthcare, technology, financial and construction sectors.
Mirae Asset Large-Cap Fund Direct-Growth
It is a large-cap mutual fund scheme launched in 2013. Now the growth rate was ₹31,129 crores worth of assets in 2021. The expense ratio of this fund is 0.51%. This ratio is higher than the large-cap fund’s charge. The ability to deliver returns of this fund is much higher than other funds. In addition, it controls losses while the market is falling. They invest their majority funds in the financial, healthcare, energy, and technology sectors.
Parag Parikh Long Term Equity Fund
It is a diversified equity scheme. It is a multi-cap mutual fund scheme that raised funds eight years ago. In 2013, its growth rate was ₹19,933 crores worth of assets. The expense ratio of this fund is 0.82%. This ratio is somewhat close to other multi-cap funds charges. The return rate of this fund is 39.60% in one year. It has delivered 21.31% of annual returns since its launch. However, it doubles the amount of money you invested in this fund in years. It can control losses even when the market is falling. Invested sectors of this fund are the automobile sector, financial services, and technology sectors.
UTI Flexi Cap Fund
UTI Flexi cap is a mutual fund scheme. It’s been nine years since its launch in 2013. The growth rate of this fund is ₹25,541 crores worth of assets. The expense ratio of this fund is 0.92%. The return rate of this fund has been 27.94% since last year. In addition, It has a 17.52% average return annually. The fund will double your invested money in 2 years. The fund has control over losses even when there is a fall in the market.
Axis Midcap Fund
It belongs to the axis mutual fund house, an open-ended mid-cap equity scheme launched in 2011. The objective of this fund is to achieve long-term capital by investment. The expense ratio of this fund is 0.47%. However, the return rate of this fund was 37.69% last year. The average annual return is 21.08%. This fund will double your invested money in years.
Kotak Emerging Equity Fund
It’s a mutual fund scheme from Kotak Mahindra Mutual Fund launched nine years ago in 2013. This fund has ₹17,529 crores worth of assets. The expense ratio of this fund is 0.53%. The return rate of this fund since last year is 43.15%. From the beginning, it delivers 21.42% average returns annually. In 2 years it will double the invested money.
Axis Small Cap Fund
Axis Small Cap raised this mutual fund scheme eight years ago in 2013. The growth rate of this scheme is ₹8,179 crores worth of assets. The expense rate of this fund is 0.36%. The returns rate of last year was 57.84%. 26.87%is the average annual return. It will double your investment amount in 2 years. Furthermore, the investment sectors of this scheme are the chemicals, technology, construction, and healthcare sectors.
SBI Small Cap Fund
This mutual fund scheme was launched in 2013. The growth rate of this scheme is ₹11,250 crores worth of assets. The expense ratio of this fund is 0.77%. The growth rate of last year was 47.67%. 27.82% is the average return annually. In addition, the fund’s top holdings are Blue star, Sheela foam, Hatsun Agro Products Ltd, and many more.
SBI Equity Hybrid Fund
SBI equity hybrid funds provide the opportunity for long-term capital appreciation. This scheme invests in a versatile portfolio of stocks. It’s an aggressive hybrid mutual fund scheme. SBI launched this fund scheme nine years ago in 2013. The growth rate is ₹48,794 crores worth of assets. The expense ratio of this fund is 0.86%. 21.14% is the return of last year. The average annual return is 16.04%. This fund doubles your invested money in 5 years. Moreover, this fund can control the loss even if the market falls.
Mirae Asset Hybrid Equity Fund
This fund came into existence for six years in 2015. The growth rate of this fund is ₹6,450 crores worth of assets. The expense ratio of this fund is 0.37%. The return rate of this fund is 21.71% from last year. Its average annual return is 15.00%. This fund can double your invested money in 2 years.
Benefits Of A Lump-Sum Investment
You can invest a considerable amount in Mutual funds. So, as a result, when there is a growth period in the market, investment value also increases.
Long Term Investment Plan
A lump-sum investment is ideal for those who are interested in long-term investment. In lump sum investment, long-term investment can be an investment tenure of 10 years. However, with a lump-sum investment in a debt fund, you can also invest for medium-term tenure.
In lump sum investment, individuals with a large investment can spread their investment. However, suppose the investment is through SIP. In that case, you have to be careful because the amount is invested at regular intervals.
Invest According To Market Timing
You should always research the market before making a long-term investment. It is better to invest at a time when the market shows growth potential because individuals can gain high returns through lump-sum investment. However, if you invest in lump sum investment when the market is already at its peak, you might end up with a loss in this case.
Investment Of Considerable Amount
You can invest a considerable amount in mutual funds. So, when the market shows the growth rate, the investment value in the lump sum investment also increases compared to the value of SIP investment.
In Lump-sum mutual fund investment, investors experience a high-risk tolerance and a considerable amount for investment. However, you should reconsider if there is fluctuation in the market.