Lump Sum
A lump sum is a single, one-time payment made in full, rather than in smaller, periodic installments. In finance, it often describes a large amount invested at once, such as in mutual funds or the share market, contrasting with systematic investment plans (SIPs) that spread payments over time. Lump sum investments suit those with immediate capital, aiming for potential growth from a single entry point. It’s a straightforward approach, differing from staggered payments, and can maximize returns if timed well in favorable market conditions.
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