Benefits of Lump Sum Investments

When you have surplus funds, and the market conditions are low or the special industry that you are looking to invest into is performing low, you can make Lump Sum investments instead of going through the long-drawn SIP route.

• You have control over Your Investments: When you are investing a Lump Sum, you can decide on how much to invest and which financial instrument to purchase. As a result, you retain control of your investment because you are not relying on the judgment of fund managers. If you have the knowledge and experience of the market, you would be able to accumulate a significant corpus over a longer period of time. Be judging best amount for Lump Sum investment and modifying as per the market conditions.
• ​You get Better Returns in the Bull Market: When you invest the entire amount in the lower market levels, in the Lump Sum investment, you get the benefit of the upward price movement for the entire duration of the bull run. Whereas, the SIPs would have invested periodically giving you a smaller share of the profits. The best strategy is to keep yourself well-informed. And make sure, you do not panic if the market is going through a downward trend.
• Benefit From Market Corrections: When the market is slipping, you can modify your Lump Sum and buy more units of your chosen financial product. Because you entered the market when it was at a low, as a result, you will be able to gain higher returns on your capital investment. If you are a well-informed and experienced investor, you may be able to benefit from modifying according to the market conditions.