Rupee Cost Averaging
✓ Last verified 14 Sep 2026
The short version
Rupee cost averaging is the natural effect of investing a fixed amount at regular intervals - you automatically buy more units when prices are low and fewer when prices are high, smoothing your average purchase cost over time.
Investing a fixed ₹10,000 every month means that when the market (and fund price) is down, ₹10,000 buys more units; when it's up, the same ₹10,000 buys fewer. Over time, this naturally smooths out the average price paid per unit, without requiring any market-timing skill or effort. It doesn't guarantee better returns than a lump sum in every scenario, but it removes the pressure of picking a single 'right' entry point - see our SIP article for the full mechanism this feeds into.
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