Why SIPs Work
Published 1 September 2026
A short look at rupee cost averaging and why consistency matters more than timing.
Educational Content Only
The core idea
Investing a fixed amount every month means you buy more units when prices are low and fewer when they are high. Over a long enough period this averages out your purchase cost without requiring you to predict anything.
Why timing is the hard part
Markets do not move in a straight line, and the best and worst days tend to cluster together. Missing a handful of strong days because you were waiting for a better entry point has historically cost more than simply staying invested.
Consistency is easier to sustain than accuracy.
What this does not do
Rupee cost averaging reduces the impact of volatility on your purchase price. It does not remove market risk, and it does not protect against a falling market. Fund selection, asset allocation and your own time horizon all still matter.
Scheme documents for every fund are published at AMFI. Read them before investing.
- SIP
- Basics
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