A lumpsum investment involves investing a large amount of money at once in a mutual fund or any other investment vehicle, as opposed to investing smaller amounts periodically like in SIP.

Lumpsum investments are ideal when you have a large amount of idle money and want to invest for long-term goals. It is especially useful during market corrections or when valuations are attractive.

Yes, lumpsum investments are more sensitive to market timing. If invested during a market peak, you may face short-term losses. SIPs average out the cost over time and reduce timing risk.

You can use a strategy called STP (Systematic Transfer Plan), which allows you to invest a lumpsum in a liquid fund and transfer fixed amounts periodically into equity funds, simulating a SIP.

Taxation depends on the fund type and holding duration. Equity mutual funds held for over a year attract 10% LTCG tax if gains exceed ₹1 lakh. Short-term capital gains are taxed at 15%.