Lump Sum is a large sum of money that is paid in one single go instead of small installment every month over time. Usually lump sum investments are undertaken by investor in who are interested to invest a big amount for a time long period in a mutual funds.

Formula to calculate interest for a lump sum investment

A = P (1+r/n)^nt

where,

A lumpsum investment is a one-time investment in a selected scheme for a specified time duration. SIP is a systematic investment wherein a smaller amount is invested in a selected scheme every month for a specified time duration.

- One time investment.
- Investment of big amount.
- Better return than bank FD.