Lump Sum
Also known as: One-time Investment, Bulk Payment
A single large payment of money, as opposed to regular installments.
Detailed Explanation
Lump sum refers to a one-time payment of the entire amount rather than receiving it in installments. In investment context, it often refers to investing a large amount at once versus systematic investment (SIP). In NPS withdrawal, 60% of the corpus can be taken as tax-free lump sum at retirement. Lump sum investments carry timing risk but also provide immediate full market exposure for potentially higher returns.
Related Calculators
Related Terms
SIP
Systematic Investment Plan - Regular investment method in mutual funds for rupee cost averaging.
NPS
National Pension System - Government-sponsored retirement savings scheme with additional tax benefits.
Market Timing
The strategy of making investment decisions based on predictions of future market movements.