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Best Mutual Funds for Lump Sum Investments in India for October 2026 can be evaluated by comparing long-term returns, fund size, expense ratios and investment objectives. For investors considering a lump sum mutual fund investment, the 5-year CAGR can provide useful insight into how a fund has performed over a longer period.
Based on the data considered for this article, five funds stand out: SBI PSU Fund, LIC MF Infrastructure Fund, Aditya Birla Sun Life PSU Equity Fund, DSP India T.I.G.E.R Fund and ICICI Prudential Infrastructure Fund.
However, historical returns should not be the only factor when selecting a mutual fund. Investors should also consider risk, investment horizon, portfolio composition and their financial goals.
Top 5 Best Mutual Funds for Lump Sum Investment
| Mutual Fund | AUM | Expense Ratio | 1-Year Return | 5-Year CAGR |
| SBI PSU Fund | ₹6,703.2 Cr | 1.88% | 1.51% | 20.47% |
| LIC MF Infrastructure Fund | ₹1,174 Cr | 2.69% | 9.51% | 20.15% |
| Aditya Birla Sun Life PSU Equity Fund | ₹6,072.6 Cr | 1.88% | 4.32% | 19.72% |
| DSP India T.I.G.E.R Fund | ₹6,467.3 Cr | 2.03% | 12.39% | 19.50% |
| ICICI Prudential Infrastructure Fund | ₹8,558.1 Cr | 1.91% | 0.78% | 19.25% |
Figures are based on the data provided for this article and can change with market movements.
1. SBI PSU Fund
SBI PSU Fund ranks first among the funds considered based on its 5-year CAGR of 20.47%.
It is an open-ended equity thematic fund with an AUM of approximately ₹6,703.2 crore and an expense ratio of 1.88%. Its NAV is ₹32.62, while its benchmark is the BSE PSU – TRI.
The fund delivered a 1-year return of 1.51% based on the supplied data. Its 5-year performance is considerably higher, highlighting why investors should evaluate both short-term and long-term performance.
For investors researching the best mutual funds for lump sum investment, SBI PSU Fund is one scheme that may be worth studying further because of its historical 5-year performance.
2. LIC MF Infrastructure Fund
LIC MF Infrastructure Fund recorded a 5-year CAGR of 20.15%, placing it second in this comparison.
The fund has an AUM of around ₹1,174 crore and an expense ratio of 2.69%. It is an open-ended sectoral infrastructure fund and tracks the Nifty Infrastructure – TRI.
Its NAV is ₹53.69 and its 1-year return is 9.51% based on the supplied figures.
Infrastructure-focused funds can benefit from long-term economic and infrastructure development themes, but they can also experience periods of higher volatility.
3. Aditya Birla Sun Life PSU Equity Fund
The Aditya Birla Sun Life PSU Equity Fund delivered a 5-year CAGR of 19.72% based on the figures provided.
The fund has an AUM of approximately ₹6,072.6 crore and an expense ratio of 1.88%. Its NAV is ₹34.40 and its benchmark is the BSE PSU – TRI.
The fund’s 1-year return is 4.32% according to the supplied data.
Investors considering mutual funds for lump sum investment should examine the fund’s objective, holdings, risk level and historical performance before making an investment decision.
4. DSP India T.I.G.E.R Fund
The DSP India T.I.G.E.R Fund has a 5-year CAGR of 19.50% based on the information provided.
It has an AUM of around ₹6,467.3 crore and an expense ratio of 2.03%. The fund tracks the BSE India Infrastructure Index – TRI.
Its 1-year return stands at 12.39%, the highest among the five funds in this comparison.
However, investors should avoid selecting a fund based only on its latest 1-year return. A longer investment horizon and the fund’s risk characteristics are also important.
5. ICICI Prudential Infrastructure Fund
ICICI Prudential Infrastructure Fund has a 5-year CAGR of 19.25%.
It has the highest AUM among the five funds at approximately ₹8,558.1 crore, while its expense ratio is 1.91%.
The fund tracks the BSE India Infrastructure Index – TRI and has a NAV of ₹194.83.
Its 1-year return is 0.78% based on the provided data. The difference between its short-term and long-term figures demonstrates why investors should avoid judging a mutual fund using a single performance period.
How to Choose the Best Mutual Funds for Lump Sum Investment?
Choosing the best mutual funds for lump sum investment depends on more than historical returns. Before investing, consider the following factors:
1. Investment Objective
Check whether the mutual fund’s objective matches your financial goals.
2. Risk Level
PSU, infrastructure and other thematic funds may have higher concentration risk than diversified equity funds.
3. Historical Performance
Review different periods, including 1-year, 3-year and 5-year performance, instead of focusing on one return figure.
4. Expense Ratio
The expense ratio represents the cost charged by the mutual fund scheme. Comparing expenses can help investors understand the cost structure.
5. Portfolio Composition
Review the companies and sectors held by the fund to understand where your money could be invested.
6. Investment Horizon
Equity mutual funds can experience short-term volatility. Investors should consider whether their investment horizon matches the nature of the scheme.
Lump Sum vs SIP: Which Is Better?
A lump sum mutual fund investment means investing a larger amount at one time. SIP, or Systematic Investment Plan, involves investing a fixed amount at regular intervals.
Lump sum investing may work differently depending on market conditions. When markets are volatile, investing the entire amount at once can expose the investor to short-term market fluctuations.
Investors who are uncomfortable with timing the market may consider spreading investments over time, depending on their financial circumstances and investment strategy.
Are These the Best Mutual Funds in India?
The funds discussed here can be considered among the best mutual funds for lump sum investment based on the supplied 5-year CAGR data.
However, there is no universally “best” mutual fund for every investor. A fund that has performed well historically may not necessarily deliver the same returns in the future.
Investors should evaluate risk, goals, time horizon, diversification and the latest scheme information before investing.
Conclusion
The Best Mutual Funds for Lump Sum Investments in India for October 2026 can be compared using long-term performance, expense ratio, AUM, risk and investment objectives.
Among the five funds reviewed, SBI PSU Fund recorded the highest 5-year CAGR of 20.47%, followed by LIC MF Infrastructure Fund at 20.15%.
However, past performance does not guarantee future returns. Investors should conduct their own research and consider their financial goals and risk tolerance before making a lump sum mutual fund investment.
Source: Angel One
Disclaimer: Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Past performance assumptions do not guarantee future returns. This content is for educational and informational purposes only and should not be considered investment advice.
