Investing
Lumpsum
Also known as: One-time investment
Investing a large amount into a fund in one go, rather than spreading it out monthly.
A lumpsum is a single large investment, like putting a ₹2L bonus into a mutual fund on one day.
It works best when you already have the money sitting idle and you are investing for the long term. Over 10+ years, getting money invested early usually beats waiting.
The risk is bad timing. If you invest everything the day before a crash, it stings. Splitting a big amount over a few months with an STP is a common middle path.
For example
Got a ₹1.5L Diwali bonus? Putting it in as a lumpsum today, versus dripping it in, mostly comes down to how much a short-term dip would freak you out.