When the market falls, does the fear of losing money make you consider stopping your Systematic Investment Plan?

Think again: when the NAV drops with decline in the market, you can buy more units with the same investment amount. And when the market rises, you acquire fewer units with the same amount of money. This means during downturns, you are stocking up on more units at a lower cost. Over time, this helps you reduce the average cost per unit.

This is known as Rupee Cost Averaging. It’s like buying more of a favourite product when it's on sale, ensuring you get the best value. Let’s break it down: If you invest Rs 10,000 via SIP when the NAV is Rs 20, you get 500 units.Let’s break it down: If the NAV falls to Rs 16 the next month, you can buy 625 units with the same SIP amount. This lowers your average cost per unit to Rs 17.78.

SIPs combine the advantages of Rupee Cost Averaging and the power of compounding. Rupee Cost Averaging lowers your investment costs while the power of compounding may help grow the potential wealth over the long run. Rupee Cost Averaging plus Power of Compounding equals Wealth Creation Potential with SIPs.

Leverage the benefits of Rupee Cost Averaging and power of compounding with SIPs in Mutual Funds which can help you achieve your financial goals.