Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Lumpsum investment is a one-time single payment into a financial instrument rather than spreading investments over time.
Lumpsum means putting a big amount in at once — like investing ₹5 lakh today instead of ₹10,000 every month.
Lumpsum maximises time in market when deployed at fair valuations. STP from liquid fund mitigates timing risk for large windfalls like bonuses or property sale proceeds. Tax and exit load apply on future redemption, not entry.
Investing ₹8 lakh bonus as lumpsum in equity fund at market dip versus STP over 12 months — lumpsum wins if market rises steadily; STP wins if fall continues after investment.
Historically lumpsum beats SIP in rising markets on average. SIP reduces timing stress and suits salaried monthly surplus.
Consider STP over 6–12 months, maintain emergency fund first, and align allocation with goals before full deployment.
Many schemes accept ₹100–₹5,000 minimum lumpsum. ELSS and some passive funds may have higher minimums.