Top Lumpsum-Friendly Mutual Funds to watch in 2026
These funds do not compete to become the best. They cater to different investors. The important thing is to select the fund that suits your objectives rather than other people's portfolios.
1. Motilal Oswal Midcap Fund Direct-Growth
The core philosophy of mid-cap funds lies in identifying future stars. However, one has to give these midcaps enough time to reveal their real potential.
Motilal Oswal Midcap Fund adopts this principle by investing in companies with potential to become large companies in the future. This high-conviction strategy implies that the fund makes focused investments rather than investing broadly.
Launched in 2014, the AUM of the fund stands at ₹36,458.20 crore with 3-year annualised returns of 20.68%. Since it has 93.37% allocation in equities, it is a high-risk fund.
The names in the portfolio include Polycab India, Coforge, and Kalyan Jewellers. The expense ratio is 0.75%. For lumpsum investors seeking to invest beyond large-cap funds to generate additional growth, this fund can serve the purpose. Just be prepared to experience the volatility of the market.
2. HDFC Infrastructure Direct Plan-Growth
In case you have a lump sum to invest in a theme-specific fund, it is necessary to know the theme first. HDFC Infrastructure Fund provides investment opportunities in companies that may gain from infrastructure development in India. The fund is invested in companies that are at different stages of the growth cycle, which include ICICI Bank, HDFC Bank, and L&T.
Since it has an infrastructure-oriented investment strategy, its performance may be dependent on how this industry performs.
The fund was established in the year 2013, and the AUM of the scheme is ₹2,444.21 crore with 3-year annualised returns of 21.09 %. It allocates approximately 99.56% of its holdings in equities, thus rendering it highly risky.
Given that this fund has an expense ratio of 1.09%, it can be looked at by investors using a lump sum investment approach targeting India’s infrastructure sector.
3. ICICI Prudential Infrastructure Direct-Growth
The infrastructure story in India is growing, and this mutual fund seeks to capitalise on it. ICICI Prudential Infrastructure Fund primarily invests in firms which stand to gain from developments in construction and power industries.
The portfolio of this fund comprises stocks of firms such as Larsen and Toubro, NTPC, and ICICI Bank. It adopts a theme-based strategy, meaning that its success is directly related to the success of the infrastructure sector.
The fund was started in 2013, and its AUM is ₹8,549.71 crore. This fund provides a 3-year annualised return of 22.33 % with a very high-risk level. 91.83% of the investments made by this fund are in stocks.
Having an expense ratio of 0.98%, this fund might interest lumpsum investors interested in India's growth story in the domain of infrastructure. Remember that theme funds can run fast both ways, so patience is important.
4. SBI PSU Direct-Growth
Looking for investment options associated with India’s growth story? SBI PSU Fund aims at investing in public sector companies operating in various sectors including banks, power, and energy.
Its portfolio contains some familiar faces such as State Bank of India, Power Grid, and GAIL (India). As most of its funds are invested in equity markets, its goal is to benefit from the growth opportunities of these sectors.
This mutual fund was launched in the year 2013, and the AUM of this mutual fund is ₹6,683.53 crore. It has given 3-year annualised returns of 27.39%.
With an expense ratio of 0.85%, this is one of the best Lumpsum Mutual funds, which may be considered for investment by those having PSU sector orientation. Remember, sector-based mutual funds experience higher volatility, so long-term planning is required.
5. Aditya Birla Sun Life PSU Equity Fund Direct-Growth
If you would like to gain exposure through government companies, this particular fund deals with PSU stocks. It invests in companies which operate in various sectors such as banking, power, and energy. Some of the stocks in this fund include State Bank of India, NTPC, and ONGC.
Most of the holdings in the portfolio are in equities, thus qualifying as a growth fund. It was established in 2020, and has an AUM of ₹6,018.74 crore. This scheme has provided 3-year annual returns of 25.42 % and comes with a very high-risk profile.
With 98.06% of the portfolio allocated to equities and an expense ratio of 0.56%, this can be a good choice for lumpsum investors having faith in the PSU theme and the ability to bear market risks.
Best Lumpsum Mutual Funds in India: Key metrics compared
Here's a brief comparison of top lumpsum mutual funds in India according to assets under management, expense ratio, and past returns.
Also check out: https://millionshq.com/blog/mutual-funds/best-mutual-funds-for-beginners-2026/
Found a fund? Now check if it fits
The choice of a best Lumpsum Mutual fund is not based on the performance of previous years. Instead, it’s all about ensuring that the fund fits your goals, risk profile, and investment horizon.
Consider these questions before investing in a specific lumpsum mutual fund:
- What would be my investment tenure?
- Less than 3 years → consider debt or hybrid.
- Above 5 years → equity (flexi-cap, large-cap, selective mid-cap) works.
- How volatile can I take it?If a 20-30% drop in portfolio value makes you lose sleep, better not go for a small/mid cap fund in lumpsum.
- Diversification or double down?In case you are heavily invested in a certain sector or theme, avoid using lumpsum for investing in that area again.
- Have I checked the basics?Here are the things to consider:
- Consistency of returns (3Y, 5Y, since inception)
- Expense ratio
- Concentration of portfolio (Top 10 positions).
- Manager’s experience.
Final word
Lumpsum investment is quite similar to the feeling of putting everything on the line. What happens if things don't go as planned? However, success in investing does not lie in discovering a fund that beats the market at all times.
This is about picking the right fund and having patience. Some of these funds in this best Lumpsum Mutual fund list are focused on growing through midcaps, while some are theme-driven like infrastructure and PSUs.
Each has its pros and cons. When investing, don’t just look at the performance figures. See what the fund’s investment strategy is, how risky it is, and if it suits your plans. As lumpsum investments usually benefit from one factor the most, that is time.
