When you make a lump sum investment, you put all of the money in at the same time. Investing in mutual funds with a lump sum is a common way to do it. If you put all of your money into a mutual fund scheme at once, it is called a lump-sum investment. People who have a lot of money and want to invest in big-ticket things often use lump sums. You can make good money in the long run by doing this kind of thing People who are willing to take risks may want to invest a large sum of money in a mutual fund. You might think about investing a lump sum of money if you get a lot of money, like an inheritance, bonus, or gift. If you get the timing of the market right, you might make money from the lump sum. I think it’s a great long-term deal. You still need to invest in a way that fits your goals, risk tolerance, and time frame. Investing in lump sums is not a good idea for short-term investments. A systematic investment plan, or SIP, is an option for people who aren’t sure how to handle big amounts of money. This type of investment plan spreads out the investments over a certain amount of time. It helps you not to try to time the market. It all depends on how much money you need. If you don’t plan for liquidity, you might have to sell your assets at a loss.

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