What is Lumpsum Investment?

A lumpsum investment is when you invest a large amount of money all at once into a mutual fund or other investment. Imagine you have saved up a lot of money, like from a bonus or selling something, and instead of putting it away bit by bit, you invest all of it in one go. With a lumpsum, your money starts working for you immediately, and you can potentially earn returns on the full amount right away. However, since you're investing a big amount at once, the risk is higher. If the market goes down after your investment, you might see a loss in the short term. On the other hand, if the market goes up, you can gain quickly.