Investment Methods

Lump-Sum Investment

Definition

What is Lump-Sum Investment?

A single, relatively large investment made at one time instead of through repeated contributions.

Example in practice

An investor places $1 million into a bond fund immediately after receiving an annual bonus.

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

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

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

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

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