Lump-Sum Mutual Funds
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 be referred to as lump sum mutual fund investment.
Lump sum helps you invest in equity funds without having to time the stock market.
Since lump sum means a single investment, the minimum amount that most mutual funds require is Rs.5,000. However, after the initial lump sum investment,usually you can make subsequent investments in multiples of Rs.1,000 in the same scheme.
Lump-sum mutual fund investments are the way to go for experienced investors with a high-risk tolerance and sizable amount for investment.
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