Planning to invest a lumpsum amount for 5 years? That’s a smart move — long enough to ride out short-term volatility and potentially build strong returns. But picking the right mutual fund matters more than just parking money randomly.
Here are the top 5 mutual funds in India for a 5-year lumpsum investment goal:
1. Parag Parikh Flexi Cap Fund
Category: Flexi Cap Fund
Why Choose It:
- Diversified across large caps, mid caps, and international equities
- Focuses on value investing and long-term wealth building
- Managed by a respected team with a conservative approach
5-Year CAGR (Approx.): 17–18%
Risk Level: Moderately High
Best For: Investors wanting steady returns with some global exposure
2. Motilal Oswal Flexi Cap Fund
Category: Flexi Cap Fund
Why Choose It:
- Focused portfolio of high-conviction stocks (Buy Right, Sit Tight strategy)
- Concentrated bets in quality businesses
- Strong long-term performance with occasional short-term volatility
5-Year CAGR (Approx.): 16–18%
Risk Level: High
Best For: Aggressive investors who trust in focused, long-term strategies
3. Nippon India Large Cap Fund
Category: Large Cap Fund
Why Choose It:
- Invests in top 100 Indian companies
- Aggressive management with strong track record
- Great potential for upside in a bullish market
5-Year CAGR (Approx.): 15–17%
Risk Level: Moderately High
Best For: Investors looking for large-cap growth with active management
4. Canara Robeco Emerging Equities Fund
Category: Large & Mid Cap Fund
Why Choose It:
- Balanced mix of stability (large caps) and high-growth (mid caps)
- Lower volatility than pure mid-cap funds
- One of the most consistent performers in its category
5-Year CAGR (Approx.): 16–18%
Risk Level: Moderately High
Best For: Balanced investors aiming for strong 5-year returns
5. Quant Active Fund
Category: Multi Cap Fund
Why Choose It:
- Tactical, fast-moving fund with unique sector calls
- High alpha potential, suitable for risk-tolerant investors
- Strong recent track record across time frames
5-Year CAGR (Approx.): 18–20%
Risk Level: High
Best For: Bold investors willing to handle short-term swings for high returns
Tips for Lumpsum Investing
- STP Strategy: If you’re nervous about market timing, invest in a liquid fund and use an STP (Systematic Transfer Plan) to enter gradually.
- Know Your Risk Profile: Choose funds that match your risk comfort — not just based on past returns.
- Track Performance: Reassess every 6–12 months. Look for consistent performers, not one-time stars.
- Tax Alert: Equity mutual fund gains beyond ₹1 lakh/year (after 1 year) attract 10% LTCG tax.
Conclusion
5-year investment horizon is ideal for building real wealth with equity mutual funds. The five funds listed above cover a mix of flexi-cap, large-cap, and multi-cap strategies — giving you a balanced portfolio tailored for growth, safety, or high risk-high return.
DISCLAIMER: This Blog is for informational purposes only and should not be construed as investment advice. Stock markets are subject to risks; please invest based on your risk profile
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