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What is rupee cost averaging and why it matters in a sliding market?


Published on 2025-02-20 10:01:16 - cnbctv18
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  • By consistently investing a set sum, whether monthly or at another fixed interval, you naturally balance out price fluctuations. When the market dips, you acquire more units; when it rises, you buy fewer.

Rupee cost averaging is an investment strategy where an investor commits to investing a fixed amount of money at regular intervals, regardless of market conditions. This approach, highlighted in the article from CNBC-TV18, helps mitigate the risk associated with volatile markets by spreading out the purchase of assets over time. Instead of investing a lump sum at a potentially high price, investors buy more shares when prices are low and fewer when prices are high, effectively reducing the average cost per share over time. This method is particularly beneficial in a sliding market as it allows investors to buy more units of an investment at lower prices, potentially leading to higher returns when the market recovers. The article explains that this strategy not only reduces the impact of timing the market but also instills a disciplined approach to investing, which can be crucial during periods of economic downturn or market uncertainty.

Read the Full cnbctv18 Article at:
[ https://www.cnbctv18.com/market/stocks/what-is-rupee-cost-averaging-and-why-it-matters-in-sliding-market-19562045.htm ]
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