{"id":12372,"date":"2022-06-10T18:24:14","date_gmt":"2022-06-10T12:54:14","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=12372"},"modified":"2022-07-14T16:59:33","modified_gmt":"2022-07-14T11:29:33","slug":"lump-sum-investment","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/lump-sum-investment\/","title":{"rendered":"Lump-Sum Investment: Meaning, Features, and More\u00a0"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d7f92cb5aef\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d7f92cb5aef\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Features_of_Lump_Sum_Investment\" title=\"Features of Lump Sum Investment\">Features of Lump Sum Investment<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Minimum_investment_amount\" title=\"Minimum investment amount\">Minimum investment amount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Time_horizon\" title=\"Time horizon\">Time horizon<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Volatility\" title=\"Volatility\">Volatility<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#How_to_Make_a_Lump_Sum_Investment_for_Mutual_funds\" title=\"How to Make a Lump Sum Investment for Mutual funds?\">How to Make a Lump Sum Investment for Mutual funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Benefits_of_Lump_Sum_Investment\" title=\"Benefits of Lump Sum Investment\">Benefits of Lump Sum Investment<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#High_return_potential\" title=\"High return potential\">High return potential<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Suitable_for_long_term_investment\" title=\"Suitable for long term investment\">Suitable for long term investment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Convenience\" title=\"Convenience\">Convenience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Timing\" title=\"Timing\">Timing<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Drawbacks_of_the_Lump-Sum_Investment_Option\" title=\"Drawbacks of the Lump-Sum Investment Option\">Drawbacks of the Lump-Sum Investment Option<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Not_suitable_for_small_investors\" title=\"Not suitable for small investors\">Not suitable for small investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Not_suitable_for_the_short_term\" title=\"Not suitable for the short term\">Not suitable for the short term<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Investment_timing\" title=\"Investment timing\">Investment timing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Irregular_investment\" title=\"Irregular investment\">Irregular investment<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Things_to_Consider_While_Going_For_Lump_Sum_Investment\" title=\"Things to Consider While Going For Lump Sum Investment\">Things to Consider While Going For Lump Sum Investment<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Return_potential\" title=\"Return potential\">Return potential<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Fund_managers_performance\" title=\"Fund manager&#8217;s performance\">Fund manager&#8217;s performance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Investment_goals\" title=\"Investment goals\">Investment goals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Investment_corpus\" title=\"Investment corpus\">Investment corpus<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Is_SIP_better_than_the_lump_sum_method\" title=\"Is SIP better than the lump sum method?\">Is SIP better than the lump sum method?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#What_is_a_Systematic_Investment_Plan_SIP\" title=\"What is a Systematic Investment Plan (SIP)?\">What is a Systematic Investment Plan (SIP)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#What_is_a_Systematic_Transfer_Plan\" title=\"What is a Systematic Transfer Plan?\">What is a Systematic Transfer Plan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/#Interested_in_how_we_think_about_the_markets\" title=\"Interested in how we think about the markets?\">Interested in how we think about the markets?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Individuals can invest their money in mutual funds either in one go or by making equal monthly\/quarterly\/half-yearly\/yearly payments. It is a lump-sum investment when one invests the whole amount in one shot. Usually, when you get a bonus from your employer, or when you sell an existing asset and are looking to reinvest the amount or you have received a sizeable amount as a gift, you can use this investment method to make the most of the capital appreciation in the medium to long term.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\"><img loading=\"lazy\" class=\"size-large wp-image-13417 aligncenter\" src=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg\" sizes=\"(max-width: 640px) 100vw, 640px\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg 1024w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-300x98.jpg 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-768x250.jpg 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022.jpg 1080w\" alt=\"Online Fixed Deposits on Kuvera\" width=\"640\" height=\"209\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">It is a suitable method for individuals with a sizable investment corpus, aiming for wealth accumulation in the long run. <\/span>Now that you know what lump sum investment is<i>, read on to learn about its features!<\/i><\/p>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Features_of_Lump_Sum_Investment\"><\/span>Features of Lump Sum Investment<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You can find some features of lump-sum investment here:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Minimum_investment_amount\"><\/span>Minimum investment amount<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This investment method involves a single payment upfront. So, the minimum investment amount is higher than <a href=\"https:\/\/kuvera.in\/blog\/sip-systematic-investment-plan-definition-types-benefits\/\">systematic investment planning &#8211; SIP<\/a>. Usually, many fund houses require an initial investment of Rs. 5,000.\u00a0 <\/span><span style=\"font-weight: 400;\">After the first investment, investors can invest in the same scheme in multiples of Rs. 1,000. Some schemes allow individuals to pay Rs. 1,000 as the initial investment amount.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Time_horizon\"><\/span>Time horizon<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Generally, lump sum investments are most profitable when one invests in them while considering their long-term financial goals. This is because investors can expect significant returns over the long run as an appreciation of the value of assets takes time.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Volatility\"><\/span>Volatility<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Market volatility is part and parcel of <a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\">mutual fund investments<\/a>. Through the lump sum method, assets may have their share of pros and cons during market turbulence. However, they are most profitable when markets are low, as you can buy more mutual fund units with the same amount.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_to_Make_a_Lump_Sum_Investment_for_Mutual_funds\"><\/span>How to Make a Lump Sum Investment for Mutual funds?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>Mutual fund investors can opt for a lump sum investment through an asset management company directly or online investment platforms like <a href=\"https:\/\/kuvera.in\/\">Kuvera<\/a>. Follow these simple steps with Kuvera to invest in mutual funds in minutes:<\/p>\n<p>&nbsp;<\/p>\n<p><b>Step 1: <\/b><span style=\"font-weight: 400;\">Download the <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.gooogle.android.kuvera.app&amp;hl=en_IN&amp;gl=US\">Kuvera app<\/a> or visit our website and sign up.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Step 2:<\/b><span style=\"font-weight: 400;\"> Complete your KYC with PAN, Aadhaar, and In-person verification through video. It is mandatory to complete <\/span><span style=\"font-weight: 400;\">KYC compliance under the Prevention of Money Laundering Act, 2002 and Rules framed there under, read with the SEBI Master Circular on Anti Money Laundering (AML) Standards\/ Combating the Financing of Terrorism (CFT) \/Obligations of Securities Market Intermediaries.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Step 3:<\/b><span style=\"font-weight: 400;\"> Select the \u2018<\/span><b>Invest<\/b><span style=\"font-weight: 400;\">\u2019 option from \u201c <\/span><b>Home<\/b><span style=\"font-weight: 400;\">\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Step 4:<\/b><span style=\"font-weight: 400;\"> Select \u2018<\/span><b>Mutual Funds<\/b><span style=\"font-weight: 400;\">\u2019, and see the categories listed, or check <\/span><b>All Mutual Funds<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><b>Step 5: <\/b><span style=\"font-weight: 400;\">You will be directed to a list of <a href=\"https:\/\/kuvera.in\/explore\/mf\/c\/all\">all mutual funds<\/a> available in Kuvera. By clicking on every mutual fund scheme, you can check its risk profile, net asset value, and past performance. In this section, we have included the performances of its counterparts to help you compare. To be sure, check the exit load and lock-in periods of the mutual fund. This will help you decide if you are ready for a commitment of the mentioned years.\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Step 6<\/b><span style=\"font-weight: 400;\">: Select the MF scheme you want to invest in, and tap on \u201cOne Time\u201d for lump sum investments. Enter the amount on the next screen and tap on \u201cBuy now\u201d, or \u201cAdd to cart\u201d.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Step 7: <\/b><span style=\"font-weight: 400;\">Make the payment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Based on the prevailing <a href=\"https:\/\/kuvera.in\/blog\/what-is-nav\/\">Net Asset Value<\/a> of the Fund, you will soon be allotted units of the mutual fund.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best time to invest through a lump sum method in mutual funds is when the markets are bearish. This is because it will allow the investors to take advantage of lower NAV and acquire more units of a mutual fund. <\/span><span style=\"font-weight: 400;\">Individuals can also invest in mutual funds through a broker\/distributor. They have to pay a higher expense ratio as the fund house has to pay a commission to the intermediary.\u00a0\u00a0\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Benefits_of_Lump_Sum_Investment\"><\/span>Benefits of Lump Sum Investment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Some benefits of investing through the lump sum mode are as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"High_return_potential\"><\/span>High return potential<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Lump-sum investment is beneficial for HNIs and institutions having a large investment corpus. They can park their funds with a long-term outlook, and when the NAV of a mutual fund increases, their returns will increase significantly due to a significant initial investment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Suitable_for_long_term_investment\"><\/span>Suitable for long term investment<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is a very suitable option for those having long-term investment goals. It is a suitable investment alternative for investors who believe in significant wealth accumulation over a long time.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Convenience\"><\/span>Convenience<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Unlike SIP, in the case of the lump sum method, individuals do not have to make regular payments. Individuals can invest at their convenience whenever they have access to a large sum of money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Timing\"><\/span>Timing<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">You can use the market timing for your benefit if you are investing via the lump sum method. Whenever the markets are low, you can utilise your funds to buy higher units of mutual funds. After recovery takes place in the markets, you can sell the units and book profits.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Drawbacks_of_the_Lump-Sum_Investment_Option\"><\/span>Drawbacks of the Lump-Sum Investment Option<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Here are some drawbacks associated with lump sum investment:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Not_suitable_for_small_investors\"><\/span>Not suitable for small investors<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This investment method is unsuitable for small investors who do not have a significant investment corpus. One may have to wait to accumulate a certain amount before starting investing.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Not_suitable_for_the_short_term\"><\/span>Not suitable for the short term<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This investment is not suitable for individuals having short-term financial goals. As the lump sum method will give actual returns only in the long term, it may not meet the investment goals of investors. Individuals having short-term investment objectives can go for debt funds if they have to meet immediate needs.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Investment_timing\"><\/span>Investment timing<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The most significant disadvantage of the lump-sum investment method is that individuals may incur heavy losses if they do not get their investment timing right. If an individual buys mutual fund units when markets are at their peak or during a bull run, investors will be able to buy only a few units of a mutual fund scheme. It will be tough for them to realize any significant real return when invested at such high prices.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Irregular_investment\"><\/span>Irregular investment<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Lump-sum investment method will not make them financially disciplined. As a result, one may not be able to use their regular savings efficiently.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Things_to_Consider_While_Going_For_Lump_Sum_Investment\"><\/span>Things to Consider While Going For Lump Sum Investment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&nbsp;<\/p>\n<p>It would help if you considered the following factors before opting for a lump sum investment in a mutual fund:<\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Return_potential\"><\/span>Return potential<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before investing, one must carefully analyze the returns that a particular mutual fund offers. Individuals must only make a lump-sum investment if the returns offered by the mutual fund scheme are in line with their expectations.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Fund_managers_performance\"><\/span>Fund manager&#8217;s performance<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A fund manager manages mutual funds. All decisions taken by them directly impact the portfolio quality and return outlook. So, individuals must carefully analyze the manager&#8217;s performance before they invest their savings.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Investment_goals\"><\/span>Investment goals<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">One must make any investment decision only after considering their financial objectives. Individuals must analyze whether the investment is in sync with their short-term and long-term goals. In the case of investing through the lump sum mode, investors will find it beneficial only if they have long-term financial goals, as this method can provide decent returns over a long period.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Investment_corpus\"><\/span>Investment corpus<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It would help if you considered the investment corpus available before opting for the lump sum route. If you have a significant corpus, a lump sum investment can be a suitable option.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>Final Word<\/b><\/p>\n<p>Today, one can find several investment avenues which can help one achieve their <a href=\"https:\/\/kuvera.in\/goals\">financial goals<\/a>. Making a Lump sum investment in the right option can ensure wealth creation over a significant period. However, individuals must consider their investment objectives, risk appetite, investible corpus, and other factors before taking a plunge.<\/p>\n<p>&nbsp;<\/p>\n<p><b>Frequently Asked Questions<\/b><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"Is_SIP_better_than_the_lump_sum_method\"><\/span>Is SIP better than the lump sum method?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The decision to invest via <a href=\"https:\/\/kuvera.in\/blog\/sip-vs-lump-sum-mutual-fund\/\">SIP or lump-sum<\/a> investments primarily depends on an individual&#8217;s investment goals, risk appetite, and available funds. Individuals with a low-risk need and a small investment can go for SIP. However, those with significant savings and high risk-bearing capacity can opt for the lump sum method<\/span><b>.\u00a0<\/b><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"What_is_a_Systematic_Investment_Plan_SIP\"><\/span>What is a Systematic Investment Plan (SIP)?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">SIP involves investing a fixed amount at regular intervals to buy units of mutual fund schemes. The most significant advantage of SIP is rupee cost averaging.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"What_is_a_Systematic_Transfer_Plan\"><\/span>What is a Systematic Transfer Plan?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">STP is one way to switch from one mutual fund scheme to another. For example, you can transfer a fixed amount to another mutual fund scheme at regular intervals if you have invested in a mutual fund scheme via the lump sum method. The former is the transferor scheme, and the latter is called the destination scheme.\u00a0 <\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Interested_in_how_we_think_about_the_markets\"><\/span>Interested in how we think about the markets?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Read more: <a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Zen And The Art Of Investing<\/strong><\/a><\/p>\n<p>Check out all our &#8220;Investor Education Originals&#8221; videos on Youtube and get smart about investing.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" title=\"How to choose between Stocks &amp; Mutual funds | Explained\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/N1li1d9X0jw?list=PLDSzQdT9nLmBFD2p94O5p2pZ4vEUR-Thz\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit <a href=\"http:\/\/app.kuvera.in\"><strong>Kuvera.in<\/strong><\/a> to discover <a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\"><strong>Direct Plans<\/strong><\/a> and <strong><a href=\"https:\/\/app.kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a><\/strong> and <a href=\"https:\/\/kuvera.in\/user\/login\"><strong>start investing today.<\/strong><\/a><br \/>\n#MutualFundSahiHai #KuveraSabs<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Individuals can invest their money in mutual funds either in one go or by making equal monthly\/quarterly\/half-yearly\/yearly payments. It is a lump-sum investment when one invests the whole amount in one shot. Usually, when you get a bonus from your employer, or when you sell an existing asset and are looking to reinvest the amount [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/lump-sum-investment\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":12374,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[99,822],"tags":[955,954,953,67,17],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Lump-Sum Investment: Meaning, Features, and More\u00a0 - Kuvera<\/title>\n<meta name=\"description\" content=\"A Lump-sum investment can be done by a investor in MF Scheme. 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