What is Lumpsum Investment?
A Lumpsum investment is when you deposit a significant amount of money in a mutual fund scheme in one go, rather than investing small amounts regularly (like in SIP).
When to choose Lumpsum?
Lumpsum investments are generally preferred when:
- You receive a bonus or windfall gain.
- Markets are in a correction phase (low valuation).
- You have a long-term investment horizon (10+ years).