Which Plan Is Best For Lumpsum Investment?

A systematic way to invest money in financial instruments like mutual funds, life insurance, term deposits, etc., is as a lump payment. The term “lumpsum investment” refers to making a single, sizable investment in a financial asset instead of making several smaller ones over time.

Since there are few transactions and lump sum investments fit their risk tolerance, many investors opt to make them.

What is the lumpsum investment?

A lumpsum investment plan is a kind of investment choice in which a one-time, lumpsum investment is made in a specific financial instrument for a predetermined time frame. If an investor has a sizable quantity of extra cash and a high-risk tolerance, he can invest in a lumpsum investment plan.

5 Lumpsum Investment Plans In India

Equity Funds

Because of their diversification and expert management, equity funds are generally less hazardous than direct market investments.

Invest in ELSS, or Equities-Linked Savings Schemes, if you want to invest in equity investments and save money on taxes for the fiscal year under section 80C. Pure equities funds and equity-linked savings plans provide a section 80C deduction of up to Rs 1.5 lakhs.

Debt Funds

There are many other kinds of debt funds, but for your contemplation, we are just accounting for those that invest in corporate bonds or government securities with ratings of AAA and AA.

These funds have a far lower risk profile than equities funds based on the securities they hold. Additionally, you gain from the fund’s diversity of securities. These funds also provide more consistent returns but may be less taxable.


Investments in ULIPs are particularly tax-efficient. In other words, they provide you with options for equity and debt funds, an 80C deduction, and a tax-free maturity value. You might be able to invest in both debt and liquid funds with ULIP and still receive the same tax advantages.

However, tax advantages are only valid if your yearly premium is less than 10% of the policy’s insured value. Therefore, an amount insured of Rs. 1 crore is required if you want to invest Rs. 10 lakh in a ULIP. However, that only applies if you invest Rs 10 lakhs at once.

Liquid Funds

Despite being more diversified than direct stock investments, equity funds have a higher level of volatility. Due to this, you ought to invest in equities funds methodically. Rupee cost averaging in the turbulent market will be advantageous if you adopt a systematic investment strategy.

You can form a systematic investment plan, or SIP, for investing in a stock fund if you are a frequent investor or invest from your monthly income.

Other Investments

Liquid funds can build investment programmes comparable to deferred annuity plans, NPSs, and PPFs. You may deduct an additional Rs 50,000 beyond the Rs 1.5 lakh 80C cap if you currently have an NPS tier-I account.

Other prominent investments include senior citizen savings plans, which you can give your parents as a gift. Also, remember that every investment option has distinct risk-return levels, appropriate investing periods, and justifications. Therefore, be sure to review each plan to see which one makes the most sense to you.


Now that you know when you might make a lump sum investment let’s say that you get a fantastic bonus and have a nice sum left over after paying all your pre-planned responsibilities and expenses. The entire payment can be put into a particular lump sum investing plan.

You can use an investing calculator or SIP calculator to help you decide whether your chosen investment strategy will help you achieve your financial goals. You can use the calculator to calculate several possible returns on your investment by adjusting essential parameters like the investment amount, time frame, and return percentage. This will help you choose an investment strategy that fits your financial objectives.

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