Investing Basics
Lump Sum Investing
Investing a large amount of money at one time instead of in smaller scheduled pieces.
Also called: one-time investing
What it means
Lump sum investing means putting a larger amount of money into the market at once rather than spreading it out over multiple purchases. It can lead to faster exposure to the market, but it also concentrates timing into one moment.
Why it matters
Users often compare this approach with dollar-cost averaging when deciding how to deploy cash.