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What is Lump Sum Investment – Benefits of Lump Sum Investment

Friends, in this article today, I will explain you about Lump-sum investment, what is Lump-sum investment in mutual fund and what are its benefits,

Because many people have heard the name of SIP but they do not know much about Lump-sum investment. So friends, you must read this article completely.

What is Lump Sum Investment

In today’s time, we want to keep our saved money in a place where our money is also safe.

And we can also get higher returns on our deposited money.

Today, people in our country are going out of the traditional way of investment,and looking for better investment options, such as stock market or mutual fund,

And today’s time investing in Mutual Fund is considered as the most popular investment option for a new investors.

Also Read This :- Best 5 SIP Start to Invest at Just 100 Rs.

Friends, whenever you invest in Mutual Fund, you get two options there, either you can SIP or Lump-sum investment,

In SIP, you select a certain amount, and you have to invest this amount every month in the mutual fund,

But if you select Lumpsum investment, then you can invest the amount at one time.

In this, you do not need to invest every month, lumpsum investment is also called one time investment.

If you want to invest for long term, then one time investments are best for you but keep in mind the market conditions.

Related Topic :- Minimum Investment in Mutual Funds

As i told you above, just as there are two popular ways of depositing money in a bank – fixed deposits and recurring deposits,

Similarly there are two popular ways of investing in mutual funds – lumpsum and SIP Investment.

Lumpsum is an investment in a mutual fund such as a fixed deposit in a bank.

Although both fixed deposit and mutual fund investment are completely different investments.

The minimum amount to deposit Lump sum in mutual funds is Rs 500, Rs 1000, Rs 5000 and in some funds Rs 10,000.

Related Topic :- What is Mutual Fund | Why Everyone like Mutual funds

Benefits of Lump Sum Investment in Mutual Fund

  • One Time Investment :-

Lumpsum investment give an opportunity to invest a lot of money at once, so that you can buy more mutual fund units at the right time and increase your profit by entering the market at the right time.

  • Higher Returns :-

Lump-sum Investment gives very good returns compared to any other investment. If you deposit your money in a bank’s fixed deposit, you will get a return of 7-8% of the year, but If you deposit your money in the lump-sum investment of the mutual fund, then you can get a return of 30-40% of the year.

  • Invest a Big Amount :-

Through Lumpsum investment in mutual funds, you can deposit any big amount in a mutual fund for a long time. You can also invest when you retire of your job or when you get more money than you can still invest in Lumpsum. So that in future your money can increase and your future will be safe.

Invest in mutual funds from here

Also Read This :- Disadvantage of Lump Sum Investment

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