Rupee cost averaging is an approach in which you invest a fixed amount of money at regular intervals. This in turn ensures that you buy more shares of an investment when prices are low and less when they are high. By investing on a fixed schedule, you avoid the complex or even impossible duty of trying to figure out the exact best time to invest. The rupee cost averaging effect - averages out the costs of your units and hence lessens the results of short-term market fluctuation on your investments.
Getting started on a rupee cost averaging strategy
- Decide on the amount you can invest on a regular and long-term basis
- Select an investment you want to hold for the long-term
- Invest at regular intervals (weekly, monthly or quarterly)
