
Lumpsum
A lumpsum investment is a one-time investment of a significant amount into a mutual fund, made at a single point in time. It is suitable for investors who have a large amount of capital ready to invest and are comfortable with market fluctuations. This approach allows the entire amount to be exposed to the market from the beginning, which can lead to higher returns if timed well. However, it also carries higher risk due to market volatility. Lumpsum investments are often used for long-term goals, and their success largely depends on market conditions at the time of investment.
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