What is Lumpsum? Definition of Lumpsum, Lumpsum Meaning - The Economic Times (2024)

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Mutual-Fund


Definition: A lump sum amount is defined as a single complete sum of money. A lump sum investment is of the entire amount at one go.

For example, if an investor is willing to invest the entire amount available with him in a mutual fund, it will refer to as lump sum mutual fund investment.

Description: Lump sum investment is considered as one way of investing into mutual funds. The other method being that of systematic investment plan, popularly known as SIP. Usually lump sum investments are undertaken by big players and investors, in stocks especially those related to assets that are likely to appreciate in the long term, making the investment profitable except in cases of high volatility.

Also See: Lump Sum Distribution, Lump Sum Pension, Installments, Systematic Investment Plan

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