A Lumpsum Investment is when you deposit a significant sum of money in a single transaction. This is common when you receive a bonus, inheritance, or have accumulated savings.
How it Works
The entire amount is invested at once and stays invested for the chosen tenure. The returns are calculated based on the compound annual growth rate (CAGR).
When to Choose Lumpsum?
Lumpsum investments are generally recommended when the market is low or correcting, as you can buy more units at a lower price. However, timing the market is difficult, which is why SIPs are often preferred for regular investing.