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An investment strategy of allocating fixed monetary amounts into asset markets at regular intervals regardless of current asset price fluctuations.
Use our verified, free in-browser SIP Calculator to run scenarios and export PDF reports.
Rupee Cost Averaging (RCA) or Dollar Cost Averaging (DCA) removes emotional market timing from investing. By investing a consistent sum every month, investors automatically purchase more mutual fund units or shares when prices are depressed and fewer units when prices are elevated.
Over cyclical market drawdowns, this lowers the weighted average purchase cost per unit, creating superior risk-adjusted long-term returns.
Computes the harmonic average cost per asset unit across all periodic investment tranches.
Cumulative sum of all periodic deposits.
Total units accumulated across all NAV purchase cycles.
Scenario: Investing ₹5,000 monthly over 3 months with fluctuating NAVs of ₹50, ₹40, and ₹60
❌ Misconception: DCA always beats lump-sum investing in pure bull markets.
✔ Reality: In strongly trending, non-cyclical bull markets, lump-sum investing can produce higher returns because all capital is deployed earlier. However, DCA provides vital downside protection in volatile markets.
Yes, a Systematic Investment Plan (SIP) is the practical automated execution of Rupee/Dollar Cost Averaging in mutual funds.