Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Rupee cost averaging is an investment strategy of investing fixed amounts at regular intervals, buying more units when prices are low and fewer when high.
Invest the same rupee amount regularly regardless of market level — you automatically buy more when prices dip and less when they rise.
RCA reduces timing risk and behavioural bias by systematising purchases. SIP in Indian mutual funds is the primary implementation. It does not guarantee profits but smooths entry across volatility cycles.
SIP ₹10,000 monthly: at NAV ₹50 you get 200 units, at NAV ₹40 you get 250 units. Over time, average cost per unit tends toward the middle of the price range.
SIP is the most common form of rupee cost averaging in India, applied systematically to mutual funds on a fixed schedule.
In steadily rising markets, lump-sum investing may outperform RCA because early full deployment captures more upside. RCA still reduces regret from mistiming.
Yes, by buying fixed rupee amounts of a stock periodically, though mutual fund SIPs offer easier diversification and automation.