Disadvantage of Lump Sum Investment – Right Time to Investment

Disadvantage of Lump Sum Investment – Right Time to Investment

Friends, in this article today I will explain to you all what are the disadvantage of investment in lump-sum and how to avoid loss.

And what are the reasons for the loss in lump-sum investment, and what are the things that you should keep in mind while investing in Lump-sum so that you do not lose your investment.

Disadvantage of Investment in Lump Sum

Friends, as you all know that there are two aspects to everything, in the same way lump-sum investment is very good for investors.

But on the other hand, it also has some disadvantages, when you think of investing in lump-sum or If you invest, then you will have to invest in keeping these disadvantages in mind.

I have explained Disadvantages below, there is no doubt that you will benefit from investing in Lump-sum.

But you have to invest keeping in mind both its advantage and disadvantage only then you guys you can book your profit in Lump-sum Investment.

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Disadvantages :-

Time of Investment :-

Whenever you want to invest in lump-sum in mutual funds, you have to wait for the right time. You should invest only when the market falls down.

You do not need to invest when the market is growing. And you think that the market may fall in the coming time, so you have to wait a little till the market falls.

But if there is more growth in the market and you invest and after that the market collapses immediately, it can hurt your investment a lot if you invest for a short term.

So whenever you invest, see the right time to invest.

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Higher Risk :-

Friends, because you are investing a huge amount together, in which you can see a lot of ups and downs in the short term,

Because the market is not the same all the time, this way, you are taking a lot of risk, If you are investing for short term,

So if you want to avoid risk, then you can go with long term investment where there is more chance that you get more profit.

But as you know, the market can fluctuate at any time, so the risk always remains in the market.

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Not Good For Short term Investment:-

Friends, as you may also know, there is constant fluctuation in the stock market and due to frequent fluctuations in the stock market,

Lump Sum equity investment cannot be considered good for short term investment.

Yes if you want to invest for long term in Lump sum equity investment, then you get definitely profit from there,

And if you invest in debt fund to reduce the risk, then you have low risky but you will get profit only as much as fixed deposits deposited in the bank,

But you would rather invest in mutual funds with the intention of making a profit,

So if you want to take risk and want to invest in long term, then you can invest in equity funds of lump-sum investment, because there is high risk in the long term as well as Profit will also be very good.

Invest in mutual funds from here

Also Read This :- Lump Sum Investment Advantages

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