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What is rupee cost averaging?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked almost 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered almost 3 years ago

Rupee cost averaging means reducing market risk through systematic purchase of a given security. In other words instead of investing a lumpsum in a mutual fund scheme you adopt a disciplined approach to investing a certain fixed amount every month at pre-determined intervals.

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Picsjoin 2017224123730582 Archana answered almost 3 years ago

Hie Uma, - Rupee cost averaging means reducing market risk through systematic purchase of a given security. - In other words instead of investing a lumpsum in a mutual fund scheme you adopt a disciplined approach to investing a certain fixed amount every month at pre-determined intervals. That way your investment amount remains fixed while the number of units you receive would be more or less depending on the fluctuations of the market. And that brings down your average cost. Such a methodology insulates you against market risks.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

Rupee cost averaging means reducing market risk through systematic purchase of a given security. In other words instead of investing a lumpsum in a mutual fund scheme you adopt a disciplined approach to investing a certain fixed amount every month at pre-determined intervals. That way your investment amount remains fixed while the number of units you receive would be more or less depending on the fluctuations of the market. And that brings down your average cost. Such a methodology insulates you against market risks. Thanks

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