8 Things To Know About Lump Sum Investments

Outlook Money

Stay Invested

Due to market fluctuations, lump sum investments can be risky in the short term; however, staying invested can yield better results.

lump sum investments

Factors To Consider

Consider your risk-taking appetite and investment duration before investing.

risk-taking appetite


Investors should determine whether they need periodic income or they can wait till maturity.


Passive Funds

Allocate a higher percentage of the investments into passive equity mutual funds, like index funds, if you are a senior citizen.

equity mutual funds

Long-Term Need

If you don’t require returns for 5-7 years, you can consider investing in long-term equity mutual funds.

Mutual Funds

Short-Term Need

For short-term needs, a larger share of the lump sum should be invested in low-risk instruments like arbitrage and liquid funds.

liquid funds

Reversed Approach

If you want to avoid taking high risks, follow the reversed approach by allocating more funds to safer options.

Compiled by Syed Muskan.

Reversed Approach