GreenFunds
Money word, in simple language

Rupee-cost averaging

Investing a fixed amount regularly, so you buy more units when prices are low.

Investing

Example. A monthly SIP uses rupee-cost averaging, smoothing out your buying price.

Rupee-cost averaging is what happens when you invest a fixed amount at regular intervals, like a monthly SIP. Your money buys more units when the price is low and fewer when it is high, so your average cost evens out over time. It removes the need to guess the perfect day to invest.

Questions people ask

What is rupee-cost averaging?

Investing a fixed amount at regular intervals, like a monthly SIP. Your money buys more units when prices are low and fewer when high, evening out your cost.

Does rupee-cost averaging guarantee a profit?

No. It smooths your buying price and removes the need to time the market, but your returns still depend on where the market is when you need the money.

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