What is Lump Sum, How to Invest Lump in Mutual Funds - Lump Sum

Last updated on Oct 03, 2022 in Stock Market

Lump Sum Investment Kya Hai: You must have known about the stock market, in which there are two ways to invest in mutual funds, one is SIP and the other is Lump Sum Investment. We have told you about SIP in the previous writing, through this article today we are going to tell you Lump Sum Kya Hai, How to Invest Lump Sum, the Advantages and Disadvantages of Lump Sum and What is the difference between Lump Sum and SIP.

 

If you are also interested in the stock market or are planning to invest in mutual funds, then you must know about Lump Sum, because Lump Sum is a good medium to earn good money from mutual funds.

 

You can get more returns than SIP with Lump Sum, to know how to read the article till the end. So let's start today's article without taking much of your time.

 

What is Lumpsum Investment

 sequence

1 What is Lump sum Investment (What Is Lump Sum )

2 Definition Of Lump Sum 

3 Lump Sum Meaning 

4 How to invest lumpsum in mutual funds

5 things to keep in mind while making a lumpsum investment

6 Advantages Of Lumpsum Investment (Advantage Of Lump Sum )

7 Disadvantage Of Lump Sum In Lumpsum Investment

8 Difference Between SIP and Lump Sum

9 Common Questions Related to Lump Sum Investing

10 Last words: What is Lump Sum 

10.1 Related Articles 

 

Lump Sum or Lump sum investment is called such investment when the investor invests a lot of money in a mutual fund at a time for a fixed time period.

 

If you say in simple language, the way you open a Fixed Deposit (FD) account in a bank, in which you deposit a lot of money in the bank at a time for a certain time period, and when that time period ends. If so, you withdraw your money with interest. Similarly, there is also Lump Sum investment.

 

A lump Sum is a good way to get good returns in Mutual Funds. When there is a huge fall in the stock market due to some reason, then the prices of all mutual funds also fall. At this time you can invest Lump Sum in a good mutual fund because in that time you get mutual funds at a very low price.

 

Definition of Lump Sum 

 

When a lot of money is invested in a mutual fund for a fixed period of time, it is called a Lump Sum investment.

 

Lump sum meaning 

 

Lump Sum Hindi meaning is lump sum investment.

 

How to invest lumpsum in mutual funds

 

If you want to invest lumpsum in mutual funds, then we have told you the process below –

 

  • First, do research on mutual funds.
  • After selecting the mutual fund, go to the official website of the mutual fund house and create an account.
  • Complete the process of KYC.
  • Set a fixed amount and a certain time period.
  • Now invest a lump sum, you can also take the help of your advisor to invest.

 

Few things to keep in mind while making a lump sum investment

 

If you want to invest in Mutual Funds through Lump Sum, then you can keep some things mentioned below in mind –

 

You should invest in Lump Sum only if you have good experience in the stock market and you have a good amount of money to invest.

 

There are many mutual funds in the market, so before investing, do thorough research that which mutual fund will be right for you.

 

After selecting mutual funds, decide how much you want to invest and for how long.

 

The timing of investing in Lump Sum is very important, if you invest in Mutual Funds through Lump Sum at the wrong time then you may have to suffer huge losses too. The chances of making profit in Lump Sum investment are high when there is a huge fall in the market and the market is preparing to climb up.

 

If Lump Sum Investment is done for Long Term then good returns can be obtained from it. There are ups and downs in the stock market, so do not sell mutual funds due to greed in the rising market and fear in the falling market. Always invest Lump Sum for the long term only.

 

Advantages of Lump Sum in Lumpsum Investment

 

Following are the advantages of lump sum investment –

 

  • Lump Sum can be a good option for experienced and good amount investors. Because in this way he can increase his risk appetite.
  • Lump Sum gives more return than Fixed Deposit.
  • Lump Sum Investing gives you the opportunity to invest a lot of money in Mutual Funds at a time.
  • With time you can increase your Lump Sum investment.
  • Lump sum investment can be started with any stockbroker and SEBI-affiliated bank.

 

Disadvantages of Lump Sum 

 

There are also some disadvantages of lump sum investment such as –

 

  • There is no guarantee of getting returns like a Fixed Deposit.
  • Lump Sum done at the wrong time can cause you to lose your capital.
  • You cannot get good returns from short-term lump sum investments.
  •  Since Lump Sum has to invest more, it is not a good option for everyone.

 

Difference Between SIP and Lump Sum

 

We have told you the difference between Lump Sum and SIP through the table below –

 

SIP (व्यवस्थित निवेश योजना)

Lump Sum (एकमुश्त)

SIP में आपको एक निर्धारित समय अवधि के लिए प्रतिमाह एक निश्चित राशि को निवेश करना होता है.

Lump Sum में आपको एक निश्चित राशि को एक बार में निश्चित समय अवधि के लिए निवेश करना होता है.

अलगअलग मार्केट परिस्थिति के कारण SIP में रिस्क कम होता है

एक बार बड़ी राशि निवेश के कारण रिस्क अधिक रहता है.

आप न्यूनतम 500 रूपये से SIP कर सकते हैं.

Lump Sum करने के लिए आपको न्यूनतम 5 हजार का निवेश करना होता है.

Lump Sum की तुलना में कम Return मिलता है.

लम्बे समय के लिए निवेश करने पर अच्छेखासे Return मिलने की संभावना होती है.

SIP Short Term और Long Term दोनों परिस्थितियों में आदर्श साबित हो सकते हैं.

Lump Sum लम्बे समय निवेश और बाजार के द्रष्टिकोण के अनुसार आदर्श साबित हो सकते हैं.

 


 

Common Questions Related to Lump Sum Investments

 

What is Lump Sum called?

Lump Sum is called lump sum, i.e. time investment in the large amounts.

 

What is the minimum lump sum investment that can be made?

You can invest a minimum lump sum of Rs 5000.

 

Who is better to invest in a lump sum?

Lump sum investment is better for those investors who have good experience in the stock market and have a huge amount to invest.

 

How to get more returns than SIP in Lump Sum?

The actual return of Lump Sum is more than SIP, the reason is that in Lump Sum you invest the entire amount at once so that the return on the entire amount starts from the very beginning. Whereas in SIP money is deposited at different time intervals, due to which it takes some time to get the return.

 

Which investment is better in Lump Sum and SIP?

Both Lump Sum and SIP have their own characteristics and both are suitable as per the risk appetite, financial goals, and requirements of the investor. For a new investor who works on a monthly salary, SIP is a good option for him, through SIP also you can earn a lot of money in the long run. Whereas for an experienced and big buck investor who wants to earn more capital, a Lump Sum can be a good way for him.

 

Last word: What is Lump Sum 

 

After reading this article, you must have understood that what is the difference between Lump Sum Kya Hai and SIP and Lump Sum. The stock market is always subject to risks, so to make any kind of investment, you must do good research and take the help of your financial advisor.

 

Hope friends, you must have liked this article written by us, also share this article with your friends on social media.

 

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