Rupee Cost Averaging

The arithmetic is real: a fixed rupee amount buys more units at lower prices, so the average cost per unit comes out below the simple average of the prices paid. What it does not do is guarantee a profit or protect against a market that falls throughout — the units accumulate at ever-lower prices and are worth less at the end. It also has an opportunity cost in a rising market, since money invested later missed the rise. Its most valuable property is behavioural: it makes continued investing automatic during declines, when discretion would usually stop.