What is meant by a Lumpsum investment?


It is one way of investing in mutual funds (the other being SIP). If an investor is willing to invest the entire amount available to him in a mutual fund in one go, it is referred to as Lump Sum mutual fund investment.

Usually undertaken by big players in the market, this type of investment is done for assets that are likely to appreciate in the long term, making the investment profitable except in cases of high volatility.

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