Investment Methods

Lump-Sum Investment

Definition

What is Lump-Sum Investment?

A single, relatively large investmentAn asset or commitment of money made with the expectation of future income, growth, or both. made at one time instead of through repeated contributions.

Example in practice

How This Looks in Practice

An investorA person or organisation that commits capital with the expectation of a financial return. places $1 million into a bond fundA fund that invests mainly in bonds with the aim of earning interest income and possible capital gains. immediately after receiving an annual bonus.

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Related Terms

Investment Methods

Dollar-Cost Averaging

Investing a fixed amount at regular intervals so the amount buys more units at lower prices and fewer at higher prices.

Investment Methods

Systematic Investment Plan

An arrangement for making scheduled recurring contributions into an investment fund.

Investment Methods

Subscription

The process of buying new units in a fund by submitting money and a valid instruction.

Returns & Performance

Total Return

The complete investment result from price changes plus income, assuming distributions are included.

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