The economy of the year 2020 has been hard struck by the COVID-19 pandemic. There is literally no finance sector which has not been affected by it. Mutual funds are no exception to that. Owing to the fall in the prices, the cost of each mutual fund unit has dropped thereby making it a matter of loss for investors if they happen to sell their units during these times. However, as is usual with all the crises, this too will go away and the market is expected to soar back by the time the new year arrives. Though selling mutual fund units might seem to be a bad idea at this point, however, to continue investing or start a new investment would rather be a good choice.
Mutual funds, considered for long-term goals, will only adjust to the dipping in-between market scenarios. In this regard, lumpsum mutual fund investment seems all the more beneficial as it is usually targeted for a longer duration. A mutual fund lumpsum calculator will give a rough idea as to what the returns are going to look like on a lump sum investment made in a specific mutual fund scheme. To use lumpsum calculator, the only specifics required are the lump sum investment amount, the rate of return and the requisite period up to which the investment has been made.
Top 5 Mutual Funds For Lumpsum Investment
So, if the market is ideal for lumpsum investment the question which next comes to mind is what are some of the best mutual funds to invest in these times. Here are 5 of the best mutual funds best suited in the category of lumpsum investment.
|Fund||NAV||Net Assets (in Cr)||Min Investment||3 MO (%)||6 MO (%)||1 YR (%)||3 YR (%)||5 YR (%)|
|Axis Bluechip Fund||Rs. 30.98||Rs. 15,945||5000||19||-7.7||6.7||9.8||9|
|Edelweiss Large Cap Fund||Rs. 36.51||Rs. 188||1000||27.8||-5.6||6||6.1||6.5|
|BNP Paribas Large Cap Fund||Rs. 94.77||Rs. 830||5000||22.2||-5.7||6.9||5.5||6.2|
|Canara Robeco Bluechip Equity Fund||Rs. 27.61||Rs. 617||5000||23.9||-3.3||14.5||8.5||8.4|
|Kotak Bluechip Fund||Rs.
Axis Bluechip Fund
Axis Bluechip Fund is excellent for large-cap investment in equity. It is a fund with high risk but also high profit. Returns on Axis Bluechip Fund up to a year are on an absolute basis and after that on a Compound Annual Growth Rate (CAGR) basis.
Edelweiss Large Cap Fund
As the name suggests, Edelweiss is a large-cap fund. It is an open-ended equity scheme comprising the top 100 companies listed in India based on market capitalization.
BNP Paribas Large Cap Fund
A fund investing in big companies that is ideal for conservative equity investors and best suited for a term longer than 5 years. So, if an investor is looking to get returns before the specified period of 5 years, this is not for them.
Canara Robeco Bluechip Equity Fund
Canara Robeco Bluechip Equity Fund focuses on investing in the stocks of the top 150 companies. It has a CAGR of 10.7%.
Kotak Bluechip Fund
Going for Kotak Bluechip Fund can be a reliable investment choice based on a thorough check on the financial strength, management strategies, liquidity, track record and reputation of the company.
Advantages Of Lumpsum Investment
There is always the debate going between which form of mutual fund investment is better: lump sum or SIP. It is clear that there cannot be an undisputed winner as both offer different benefits to different types of investors. However, if the benefits of lumpsum investment are to be considered then there are certain advantages which it offers.
Great For Long-term Investment
Lumpsum investment is ideal for long-term investment as the capital gets sufficient time in the market to adjust the ups and downs of the economy and provide a substantial return in the future. Since investment is made for a long run, risks associated with it also get balanced.
Convenience Of Investment
As the investment amount is paid at once, there is no burden of regularly depositing a said amount. What remains to be done is to sit back and keep checking the performance of the investment. A mutual fund lumpsum calculator offers help by giving the estimate of the returns to be had from a said lumpsum amount.
Lump sum investments are designed to suit the opportunistic moments. When the market has slumped it is the unit costs fall down and more units are available at a lower price. Lumpsum investment can be ideal in such a situation as it enables the purchase of a greater number of units than when the market is performing well. With the economy badly hit by the pandemic, it seems a blessing in disguise for lumpsum investment.
An investor, based on his compatibility, can choose any of the 5 abovementioned mutual funds. A mutual fund lumpsum calculator can also be used to see the results of each of these lumpsum investment schemes. Hence, if the lumpsum investment is the preferred option for an investor, it would be ideal for him to make the most of the opportunity provided in this year.