Best One Time Investment Mutual Funds In India
20 Nov 2025 7 mins Mutual Funds
In a world where financial stability is paramount, identifying the best one-time investment mutual funds can be a game-changer. With the Indian economy showing potential growth, investors are looking for avenues to maximize their returns with minimal risk. This blog presents a comprehensive analysis of the best mutual funds for one year, providing insights into which fund is best for long-term investment.
With the right information, you can make informed decisions that can secure your financial future. Key takeaways from this article include:
An overview of top one-time investment mutual funds.
Data-driven insights to guide your investment choices.
Expert opinions on long-term investment strategies.
For a seamless investment experience, consider using a reliable platform like CredyFi.
Understanding Mutual Funds
Mutual funds are investment vehicles that pool money from multiple investors to purchase securities like stocks, bonds, or other assets. They provide an opportunity for individuals to invest in a diversified portfolio managed by professional fund managers. The Indian mutual fund industry has grown significantly, with assets under management reaching approximately ₹39.42 lakh crore as of September 2023, according to the Association of Mutual Funds in India (AMFI).
Investing in mutual funds is suitable for both short-term and long-term goals. For one-time investments, choosing the right mutual fund is crucial. It ensures that your capital grows effectively while managing risks associated with market fluctuations. A well-managed mutual fund can leverage market conditions to provide higher returns than traditional savings instruments.
Top One Time Investment Mutual Funds for 2023
Here are some of the best one-time investment mutual funds in India that have shown promising returns:
Fund Name | Category | 1-Year Return (%) | Expense Ratio (%) | Fund Manager |
|---|---|---|---|---|
Axis Bluechip Fund | Large Cap | 18.5 | 1.78 | Jinesh Gopani |
SBI Small Cap Fund | Small Cap | 22.3 | 1.95 | Vineet Sethi |
HDFC Mid-Cap Opportunities Fund | Mid Cap | 20.1 | 1.17 | Rakesh Vyas |
ICICI Prudential Equity & Debt Fund | Hybrid | 15.8 | 1.60 | Manish Gunwani |
Nippon India Growth Fund | Large Cap | 19.2 | 1.99 | Prashant Khemka |
These funds have been selected based on their historical performance, fund management quality, and expense ratios. For instance, the SBI Small Cap Fund has outperformed many of its peers, offering a remarkable 22.3% return over the past year, indicating a strong potential for growth in the small-cap segment.
Factors Influencing Fund Selection
Choosing the right mutual fund requires careful consideration of several factors:
1. Investment Goals
Your investment goals should align with the fund's objectives. For instance, if you are looking for growth, equity funds might be suitable, whereas debt funds are preferable for capital preservation. Setting clear financial goals, such as saving for a child's education or retirement, can help determine the type of mutual funds to invest in.
2. Risk Appetite
Understanding your risk tolerance is crucial. Some funds are more volatile than others, and it's essential to choose one that fits your risk profile. For example, if you have a high-risk tolerance, investing in small-cap or mid-cap funds could yield higher returns, albeit with increased volatility compared to large-cap funds.
3. Fund Performance
Review the historical performance of the mutual fund. While past performance is not indicative of future results, it can provide insights into the fund's consistency and management quality. Look for funds that have outperformed their benchmark indices over multiple timeframes, as this can indicate effective fund management.
4. Expense Ratio
The expense ratio is the annual fee that funds charge their shareholders. A lower expense ratio can lead to higher net returns for investors. For instance, the HDFC Mid-Cap Opportunities Fund has a lower expense ratio of 1.17%, which can significantly impact returns over the long term, especially in a high-growth environment.
Investment Strategies for One-Time Investments
Investing in mutual funds can be strategic. Below are actionable steps to maximize your returns:
1. Research and Compare
Before investing, conduct thorough research on different funds. Use tools and platforms to compare their performances, fees, and management. Websites like Value Research and Groww provide extensive data on mutual fund performance and ratings.
2. Diversification
Consider diversifying your investments across different categories such as equity, debt, and hybrid funds to spread risk. A well-diversified portfolio can help mitigate losses during market downturns while capturing growth in various sectors.
3. Monitor Regularly
Keep track of your investments and market conditions. This will help you make informed decisions about staying invested or switching funds if necessary. Regularly reviewing your portfolio can help ensure that your investments align with your goals and risk tolerance.
4. Consult a Financial Advisor
For personalized advice, consulting a financial advisor can provide tailored recommendations based on your financial situation and goals. Advisors can help you navigate complex market conditions and optimize your investment strategy.
Expert Opinions on Long-Term Investment
Many financial experts advocate for mutual funds as a viable long-term investment strategy. According to a recent report by the Securities and Exchange Board of India (SEBI), mutual funds have consistently outperformed traditional investment avenues such as fixed deposits and gold over the long term. An expert financial planner, Ramesh K. Jain, emphasizes that “investing in equity mutual funds has the potential to yield substantial returns over a longer time horizon, making them suitable for wealth creation.”
Additionally, as per a study conducted by the Association of Mutual Funds in India (AMFI), investors who stayed invested in equity mutual funds for over 10 years achieved an average annualized return of 14-16%, significantly higher than inflation rates, thereby enhancing purchasing power.
Frequently Asked Questions (FAQs)
What are mutual funds?
Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.
How do I choose the best mutual fund for one-time investment?
Consider factors like your investment goals, risk appetite, fund performance, and expense ratio before selecting a mutual fund.
What is the average return on mutual funds in India?
The average return varies by fund category. Historically, equity mutual funds have provided returns in the range of 12-15% per annum over the long term. However, small-cap and mid-cap funds have the potential for higher returns, albeit with increased risk.
Can I invest in mutual funds through SIPs?
Yes, Systematic Investment Plans (SIPs) allow you to invest in mutual funds in a disciplined manner, but this article focuses on one-time investments.
What are the risks associated with mutual funds?
Risks include market risk, credit risk, and interest rate risk, depending on the type of mutual fund you invest in. Understanding these risks is crucial for making informed investment decisions. For example, equity funds are subject to market risk, while debt funds may face credit risk based on the quality of bonds held in the portfolio.
How can I track my mutual fund investments?
Investors can track their mutual fund investments through online portals, mobile applications, or by contacting their fund houses directly. Many mutual fund companies offer mobile apps that provide real-time updates on fund performance.
Is it advisable to invest in mutual funds for the long term?
Yes, mutual funds can be a good long-term investment strategy, especially equity funds, which tend to outperform inflation over time. Long-term investments can benefit from compounding, where returns generate additional returns, leading to exponential growth.
Key Takeaways
Mutual funds are a flexible investment option suitable for various financial goals.
Top mutual funds for one-time investments include Axis Bluechip Fund and SBI Small Cap Fund.
Consider factors like risk appetite and expense ratio before investing.
Regular monitoring and diversification can enhance your investment outcomes.
Are you ready to take control of your financial future? Start investing in one of the best mutual funds today! If you have any questions or need personalized advice, feel free to leave a comment or reach out to an expert.
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Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam (IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.