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Finance Glossary

Finance Glossary

Lump-sum

Lump-sum

Lump Sum



Definition of Lump Sum


Lump sum refers to a larger, single payment or investment, rather than several smaller payments spread out over time. Mutual fund investments are generally divided into two categories: lump sum, which is a larger one-time investment, or systematic investment plans (SIP), which involve making smaller investments into the fund at regular intervals.


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