About Lumpsum Investments
A lumpsum investment involves investing a significant amount of money at once, rather than spreading it out over time. This is ideal when you have idle funds or receive a large amount of money from bonuses, inheritance, or savings.
Advantages:
- Potential for higher returns through early compounding
- Simple and one-time transaction
- Suitable during bullish or stable market trends
Disadvantages:
- Higher market timing risk
- Emotional stress during market fluctuations
- Not ideal if the market is highly volatile
