Best Lump Sum Investment Approach to Avail Maximum Benefit
Saving is important but investing is even more important so as to earn the time value of money which otherwise would have been lying idle. Although there are a number of investment options present in the market, mutual fund investment is the most trending one, talking of today’s time. Investment in them helps one to earn good returns with time which is much better than those generated by other investment methods. You may invest in mutual funds generally by two modes of investments which are lumpsum and SIP. Let’s read further about the same.
Table of Content
There are a number of blogs that have been already published related to the SIP mode of investment. So here in the coming blog, the expert of MySIPonline is sharing the details of lumpsum investment, followed by the right approach, and the right time to invest in the mutual funds. Apart from these, we bring for you the best lumpsum investment mutual funds 2018 for you to invest in.
What Is Lumpsum Investment in Mutual Funds?
Lumpsum Investments are those investments in which an investor has to pay the whole investment amount only once and is able to redeem anytime or at the end of the tenure.
The Right Approach of Lumpsum Investment
"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.” - Warren Buffet. In the mutual fund investment market investors usually invest when the market is doing well as they believe that it will continue and help them fulfill their investment goals. When a fund continuously does well, it may suffer a fall afterwards, as with increase in AUM it might become tough for the fund manager to handle and find productive instruments for investment. This is the situation in which the investors should refrain from investing in such schemes. Therefore, it is rightly said that be fearful when others are greedy.
Similarly, there are times when investors are fearful because of the ongoing situation and hesitate from investing in the mutual fund schemes. This is the time that one should be greedy to invest, as after such situations, market is very likely to perform well, therefore it is said that be greedy when others are fearful.
Is it the Right Time to Invest in Lump Sum Investment Plans?
Market has gone down due to a number of reasons and is currently also going through the correction phase in mid cap and small cap space. When the net asset value of most of the fund has gone low, it is mostly suggested that one should make an additional purchase so as to avail the benefit when the market rises again. However, this is fine in case of SIP investment as the amount invested is usually small in comparison to the lump sum investment amount. With the elections 2019 nearing up, this is an uncertain situation and therefore, it is suggested that investors might invest their money in a liquid fund or an ultra short term fund and may transfer the same using STP (Systematic Transfer Plan) thereafter.
Best Mutual Funds for Lump Sum Investment 2018
Wondering which fund to invest in via lumpsum mode in mutual funds. Below are the top five lump sum investment mutual funds to invest in, which have been shortlisted after intensive research conducted by the expert of MySIPonline.
L&T Emerging Businesses Fund (G)
The investment objective of this scheme is to help investors earn long-term capital appreciation through investment in equity and equity related instruments which includes equity derivatives. It mainly focuses on investing in emerging companies, i.e., the stocks of small cap companies. It may additionally invest in foreign securities as well.
| Basic Information | |
|---|---|
| Parameters | L&T Emerging Businesses Fund (G) |
| Category | Equity : Small Cap |
| Benchmark | S&P BSE Small Cap TRI |
| Launch Date | 5/12/2014 |
| Asset Size | Rs. 5163 crore(As on Oct 31, 2018) |
| Fund Manager | Soumendra Nath Lahiri |
| Expense Ratio | 2.39% (As on September 30th, 2018) |
| Minimum Lumpsum | Rs 5,000 |
| Minimum SIP | Rs. 500 |
| Exit Load | 1% for redemption within 365 days |
L&T Mid Cap Fund (G)
This is an open-ended scheme that invests mainly in the mid-cap companies to generate long-term capital appreciation.
| Basic Information | |
|---|---|
| Parameters | L&T Mid Cap Fund (G) |
| Category | Equity : Mid Cap |
| Benchmark | NIFTY Midcap 100 TRI |
| Launch Date | 8/9/2004 |
| Asset Size | Rs. 3197 crore (As on Oct 31, 2018) |
| Fund Managers | Soumendra Nath Lahiri and Vihang Naik |
| Expense Ratio | 2.35% (As on September 30th, 2018) |
| Minimum Lumpsum | Rs. 5000 |
| Minimum SIP | Rs. 500 |
| Exit Load | 1% for redemption within 365 days |
Mirae Asset India Equity Fund (G)
The investment objective of this scheme is to generate long-term captial appreciation by taking benefit of the opportunities present, by investing in the equity and equity related instruments.
| Basic Information | |
|---|---|
| Parameters | Mirae Asset India Equity Fund (G) |
| Category | Equity : Multi Cap |
| Benchmark | S&P BSE 200 TRI |
| Launch Date | 4/4/2008 |
| Asset Size | Rs. 8755 crore (As on Oct 31, 2018) |
| Fund Managers | Harshad Borawake and Neelesh Surana |
| Expense Ratio | 2.01% (As on September 30th, 2018) |
| Minimum Lumpsum | Rs 5,000 |
| Minimum SIP | Rs. 1000 |
| Exit Load | 1% for redemption within 365 days |
ICICI Prudential Bluechip Fund (G)
This is an open-ended scheme launched by ICICI Prudential Mutual Fund, that helps investors earn long-term capital appreciation by investing mainly in the equity and equity related instruments of large cap companies.
| Basic Information | |
|---|---|
| Parameters | ICICI Prudential Bluechip Fund (G) |
| Category | Equity : Large Cap |
| Benchmark | NIFTY 100 TRI |
| Launch Date | 5/23/2008 |
| Asset Size | Rs. 18966 crore(As on Sep 30, 2018) |
| Fund Managers | Anish Tawakley and Rajat Chandak |
| Expense Ratio | 2.17% (As on Sep 30, 2018) |
| Minimum Lumpsum | Rs. 100 |
| Minimum SIP | Rs. 100 |
| Exit Load | 1% for redemption within 365 days |
Mirae Asset Emerging Bluechip Fund (G)
This scheme mainly invests in the equity and equity related instruments of large cap and mid cap companies to help investors earn long-term capital appreciation.
| Basic Information | |
|---|---|
| Parameters | Mirae Asset Emerging Bluechip Fund (G) |
| Category | Equity : Large & MidCap |
| Benchmark | NIFTY Large Midcap 250 TRI |
| Launch Date | 7/9/2010 |
| Asset Size | Rs. 5681 crore (As on Sep 30, 2018) |
| Fund Manager | Neelesh Surana |
| Expense Ratio | 2.39%(As on August 31, 2018) |
| Minimum Lumpsum | Rs. 5000 |
| Minimum SIP | Rs. 1000 |
| Exit Load | 1% for redemption within 365 days |
The Final Note
Hope you understand by now, what is lump sum investment and the right way to invest in it. Make sure that you understand well the requirement of your portfolio before selecting the schemes to invest in. You must be well aware of the following points which are, the amount that you wish to invest, the duration, and the risk that you are ready to bear. If you need assistance regarding calculating the lump sum amount, you may use the lump sum calculator. If you need any help regarding investing in mutual funds, feel free to contact the financial experts right away. To get your query related to regular funds answered, post the same here.
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