Summary of "Best 4 Mutual Funds for Lumpsum Investments | Investing Lumpsum in Mutual Funds | YEG"

Best 4 Mutual Funds for Lumpsum Investments

Investing Lumpsum in Mutual Funds | YEG Presenter: Ranjan (Your Everyday Guide)

Key Finance-Specific Content Summary

1. Lumpsum Investment Risks & Context

Lumpsum investing involves investing a large amount at once, unlike SIP (Systematic Investment Plan), which spreads investments over time. This approach carries higher risk if timed poorly.

Example: ₹1 lakh invested in a Nifty 50 Index Fund on 19 Sept 2024 showed:
- Initial 3% gain within 8 days.
- Followed by a 15% correction by 4 March 2025.
- After approximately 414 days (up to 7 Nov 2025), the overall return was nearly flat at 0.02%.
Mid-cap or small-cap funds during the same period could have resulted in a 10% loss.
Lesson: Timing and fund choice are crucial to avoid losses in lumpsum investing.

2. Recommended Mutual Fund Categories for Lumpsum Investments

A. Gold and Silver Mutual Funds / ETFs

Gold and silver have surged over 50% in the last year due to global market factors such as tariffs and industrial demand.

Gold offers steady, low downside risk growth.
Silver demand is driven by both industrial use (~60%) and safe-haven appeal.

Recommended Funds:

Axis Gold Mutual Fund
SBI Gold Fund

Advantages over physical or digital gold/silver:

SEBI regulated and backed by physical metals.
Lower expense ratio (~0.5%).
Avoids making charges, GST, markup fees, and regulatory issues common in digital gold apps.

Portfolio advice: Allocate 10-15% in gold/silver as a hedge against equity, adjusting dynamically based on market conditions.

Platform Mentioned: Stable Money — expert-backed platform allowing investments starting at ₹100, with customizable gold/silver ratios and regulated funds.

B. Balanced Advantage Funds (Dynamic Asset Allocation Funds)

These funds automatically adjust equity and debt allocation based on market valuations:

When markets are high → increase debt, reduce equity (equity allocation ranges between 30%-80%).
When markets are low → increase equity, reduce debt.

Benefits:

Lower volatility and risk.
Suitable for lumpsum investments across market cycles.

Recommended Funds:

HDFC Balanced Advantage Fund
ICICI Prudential Balanced Advantage Fund

Performance & Risk:

Fund 5-Year CAGR 10-Year CAGR Notes HDFC Balanced Advantage Fund ~22.82% ~15.78% Higher returns, more volatile, lower expense ratio ICICI Prudential Balanced Advantage Fund ~13.74% ~12.22% More stable, lower volatility

C. Aggressive Hybrid Funds

Hybrid funds with higher equity allocation (up to 80%) and the remainder in debt, offering lower risk than pure equity funds with better downside protection.

Recommended Funds:

ICICI Prudential Equity and Debt Fund
Kotak Aggressive Hybrid Fund

Performance & Risk:

Fund 5-Year CAGR 10-Year CAGR Notes ICICI Prudential Equity and Debt Fund ~22.23% ~16.93% Outperformed Kotak with similar volatility Kotak Aggressive Hybrid Fund ~17.33% ~14.90% Slightly lower returns

Additional metrics such as Sharpe ratio and Sortino ratio favor ICICI Prudential.

D. Nifty 50 Index Funds

These funds track the top 50 Indian companies and are considered low-risk for lumpsum investments.

Contra funds (Nifty 500 benchmark) outperform index funds via SIP but carry higher lumpsum risk.
Nifty 50 index funds have low expense ratios and tracking errors (~0.01%).

Recommended Funds:

Nippon India Nifty 50 Plan
Bandhan Nifty 50 Index Fund
Motilal Oswal Nifty 50 Index Fund
Navi Nifty 50 Index Fund

Suitability: Ideal for lumpsum investments due to lower risk compared to mid/small/multicap or sectoral funds.

Methodology / Framework for Lumpsum Investing (Key Recommendations)

Avoid lumpsum investments at market all-time highs. Wait for corrections or sideways movement before investing.
Do not invest entire capital at once. Start with 20-30%, then deploy remaining capital opportunistically during market dips.
Prefer low-risk mutual funds for lumpsum investments, especially if inexperienced:
- Gold/silver funds for diversification and hedging.
- Balanced advantage or aggressive hybrid funds for dynamic risk management.
- Nifty 50 index funds for stable, broad market exposure.
Avoid lumpsum investing in high-risk funds (small cap, mid cap, sectoral) unless you have strong market knowledge and experience.
Consider moving money from low-risk funds to higher-risk funds later as per market conditions and comfort.

Explicit Cautions & Disclaimers

Example cases are hypothetical but realistic; lumpsum investing carries timing and market risk.

Digital gold/silver investments are not regulated and carry additional costs.

The video emphasizes understanding market timing and risk before lumpsum investing.

Not explicitly stated as financial advice but implies caution and recommends choosing low-risk funds.

Assets, Tickers, and Sectors Mentioned

Indices: Nifty 50, Nifty 500
Funds:
- Axis Gold Mutual Fund
- SBI Gold Fund
- HDFC Balanced Advantage Fund
- ICICI Prudential Balanced Advantage Fund
- ICICI Prudential Equity and Debt Fund
- Kotak Aggressive Hybrid Fund
- Nippon India Nifty 50 Index Fund
- Bandhan Nifty 50 Index Fund
- Motilal Oswal Nifty 50 Index Fund
- Navi Nifty 50 Index Fund
Commodities: Gold, Silver
Investment Platforms: Stable Money (for gold/silver mutual funds)