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One-time investment plan, also referred to as lump sum investment option, is an effective investment option available for experienced investors with in-depth awareness about market conditions. These also effect investment decisions. Such investors have the confidence to invest a lump sum amount at one go as opposed to investing through regular monthly instalments in the form of an SIP. For such investors, a direct plan is a viable preference over a regular plan.
Benefits of One Time Investment Plan
Let’s take a look at the benefits of one time investment plan:
Longer time for capital growth: The lump sum capital invested through a one-time option stays in the market for a much longer period of time, attracting higher opportunities for appreciation and wealth creation.
- Nominal charges: As one time investment option invest a lump sum at one go, the transaction charges involved will also be one time mostly. This implies that the investor will save him/her from paying transaction charges on every monthly installment.
- Hassle-free: One time investment saves you from the inconvenience of keeping a close track of your monthly installment payments. It is true that you can opt for auto-debit of your SIP monthly instalments. However, you need to check whether the auto-debit has not remained incomplete due to a technical glitch or insufficient balance in your account.
Factors to Consider Before Investing through an One Time Investment option
- Be aware of the existing market conditions: Understand the current investment market scenario to decide whether it is suitable for investing through a one-time investment option. This is relevant for all investments, more so for one time investment because it involves a lump sum payment. Track the Price to Earnings (P/E) ratio of a broad market index like NIFTY for the last three to four quarters to evaluate the existing market condition.
- Evaluate the expected returns before investing: Track the performance of funds in the recent past and the estimated returns in the future to get clarity on whether it meets your expectations. Also, ensure the liquidity that it promises to meets your expectations.
FAQs on One Time Investment Plan
Can I invest one time in mutual fund?
Yes, you can make a lump sum investment in mutual fund.
Which fund is best for one time investment?
The following are some of the funds one can consider for one time investment:
- ICICI Prudential Bluechip Equity Fund - Direct – Growth
- Mirae Asset Emerging Bluechip Fund - Direct - Growth
- Reliance Large Cap Fund - Direct – Growth
- Axis Focused 25 Fund - Direct – Growth
- Tata Equity P/E Fund - Direct – Growth
- HDFC Small Cap Fund - Direct - Growth
- Kotak Emerging Equity Scheme - Direct – Growth
- Aditya Birla Sun Life Tax Relief 96 - Direct – Growth
- SBI Banking & Financial Services Fund - Direct – Growth
- UTI Nifty Index Fund - Direct - Growth
Where should I invest money in 2019?
You need to have a clear idea about your investment objectives and risk appetite and invest in schemes that are aligned to your needs.
Which is the best investment plan in India for middle class?
Investment plans that are suitable for you depend on whether features and fund performance meet your investment objectives. Understand what you expect from your investments and take conscious decisions accordingly.
Is SIP better than one time investment?
SIP and one time investment plans, both have pros and cons. Consider each of these pros and cons carefully and invest in the one that is more suitable for you.
