What is rupee-cost averaging, and how does it work?

What is rupee-cost averaging, and how does it work?

Rupee-Cost Averaging is an investment strategy where you invest a fixed amount of money regularly, no matter what the market price is.

This helps you buy more units when prices are low and fewer units when prices are high, which averages out your cost over time and reduces the impact of market volatility.



Why Is It Useful?
  1. Reduces risk of investing a big amount at the wrong time.
  2. Encourages discipline and consistency.
  3. Works well in SIPs (Systematic Investment Plans) in mutual funds.

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