Whenever we want to invest in Mutual Fund, then we have two ways first to invest in Mutual Fund through SIP and secondly to invest in Mutual Fund through Lump Sump Investment.
Today I will tell you what is Mutual Fund Lump Sum Investment and how to invest in Lump Sum? So let’s know
What is Lump Sump: Lump Sump Investment is called lump sum investment, when an investor invests a lot of money in Mutual Funds at a time, then it is called Lump Sum Investing in Mutual Fund.
Lump-Sum is a very good way to increase your returns from Mutual Funds, many times there is a huge fall in the stock market due to which all the mutual funds also fall down and this is the best time to have a good mutual fund. By choosing to invest a lump sum in it because at this time all Mutual Funds are available at a discount.
When a lot of money is invested in a mutual fund in a lump sum, it is called Lump Sum Investment and when a little money is invested every month in the Mutual Fund, it is called investing through SIP.
Investment in one go: Lump Sum gives an opportunity to invest a lot of money in one go so that by entering the market at the right time, you can buy more Mutual Fund units and increase your profits.
More Benefits: Mutual Funds Lump Sum Investments earns more returns than any other equivalent investment like Fixed Deposit
For example, if we put 1 lakh rupees in Fixed Deposit for 25 years, then according to 8% interest rate, the amount we will get = Rs 724465 and invest the same money in Mutual Funds in Lump Sum and get the return. Even if 15% is considered then the amount we will get will be = Rs 32,91,849
** Return of 15% is because the stock market has given an average return of more than 15% every year in the last 35 years.
How To Start Lump Sum Investment
Investing in Lump Sum can be started in 3 STEP
1. Research: There are hundreds of Mutual Funds in the market, so according to complete research and risk tolerance, choose the right Mutual Fund so that you can achieve your financial goals.
2. Get Paper Work Done: Complete e-KYC with whatever mutual fund you have chosen for your investment and get your basic documents verified like Pan Card, Aadhar Card.
3. Planning: After the account is opened, you have to decide that how much amount, for how many years you want to invest in the selected mutual fund, and accordingly make your mutual fund lump sum investment.
Things to keep in mind before investing in Lump Sum -
If you do or want to invest in Lump Sum, then you should take care of the Time of Investment because if Lump Sump Investment is done at the wrong time, then your capital can suffer heavy losses and it may take many years to recover that loss. Is.
Never do Lump Sum Investment as a Short Term Investment, rather invest for at least 5 years to take full advantage of Lump Sum Investment.
All mutual funds invest their money in the stock market, so it is common to have fluctuations in the mutual fund, but this fluctuation is only for the short term, so do not sell your mutual fund units in fear or greed, but long term. Hold it for
Is it right to do Lump Sum Investment in Mutual Fund
The answer is yes.. because investing in Lump Sum when the market is down and Mutual Funds are available at a discount can increase your returns as compared to SIP. Investing in Lump Sum requires a large amount of money.
Lump-Sum Investment has more risk than SIP, if you can take a little more risk then you should definitely do Lump Sum Investment.
I hope you have understood what is Lump Sum Investment? How to Invest in Lump Sum? If you still have any questions related to What Is Lump Sum — How To Start Lump Sum Investment, then you can ask by commenting.
