What is the primary meaning of the term 'lump sum'?

A small sum of money A large sum of money A series of payments A type of loan

What is a key characteristic of lump sum investment in the context of mutual funds?

Investing in installments Investing the entire available amount at once Following a systematic monthly deposit plan Investing in short-term, high-risk assets

How does a Systematic Investment Plan (SIP) differ from a lump sum investment?

SIPs involve investing a large sum of money at one time SIPs are typically recommended for experienced investors SIPs involve making regular, periodic payments SIPs are considered high-risk investments

Which type of investment is generally considered more suitable for investors new to the market?

Lump sum investments Systematic Investment Plans (SIPs) High-yield bonds Futures contracts

What is a potential advantage of lump sum investment over SIPs in terms of charges?

Lump sum investments typically have higher transaction costs Lump sum investments often involve exit loads and taxation liabilities Lump sum investments may have lower minimum charges due to one-time investment Lump sum investments generally have higher maintenance costs

What is a key factor to consider before making a lump sum investment?

Impatience and a desire for quick returns Disregarding market valuations and trends Lack of understanding of potential returns Patience and a long-term investment perspective