New Delhi, Nov. 12 -- With Diwali bonuses and investments, one of the common dilemmas is - should you put the entire amount into mutual funds at once or spread your investments over several months? While both these approaches are practical, they come with their own advantages and risks. Ultimately, your choice depends on your financial goals, investment horizon, and tolerance to market fluctuations.

When you invest a lump sum, you put the entire amount available into a mutual fund in a single transaction. One practical advantage of lump sum investment is that the entire amount gains market exposure right from the beginning. When the market rises over the following years, the full amount enjoys the growth potential. So, when you're invest...