Rupee Cost Averaging

The idea of rupee cost averaging is averaging out the price at which you purchase units of a mutual fund. The main factor of equity investments is market volatility, reflecting the unpredictability of the economy. The demand of law says that the commodity is purchased at a higher quantity when it is less expensive and when the price increases the demand reduces.

When the market is rough the rupee cost averaging works the best. It benefits the investors to purchase less when the markets are high-priced and more when it’s cheap. A Systematic Investment Plan (SIP) is an easy investment plan of doing this with the advantage of rupee cost averaging.