What is rupee cost averaging?
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.
