Does Value Averaging Score Over Rupee Cost Averaging?

Rupee Cost Averaging

Authors

  • Pranam Dhar Department of Commerce & Management, West Bengal State University, Kolkata-700126, West Bengal, India.
  • Sayan Banerjee Goenka College of Commerce and Business Administration, Kolkata – 700012, India

DOI:

https://doi.org/10.46977/apjmt.2021v01i03.005

Keywords:

Net Asset Value; Rupee Cost Averaging; Value Averaging; Systematic Investment Plan; Asset Allocation

Abstract

Systematic Investment Plan (SIP) has gained immense popularity in India since the last decade. The main reasons behind this popularity have been debarring the commitment of chunk investment and implementation of the auto timing mechanism through Rupee Cost Averaging (RCA). Rupee Cost Averaging yields the benefit by altering the number of units acquired by an investor. The periodical investment amount remains the same. A modified concept of Rupee Cost Averaging is Value Averaging (VA) that shows how periodical investments can be altered to gain more benefits from market fluctuations. The present paper vividly depicts how Value Averaging (VA) plays a dominant role over Rupee Cost Averaging (RCA) as regards Return on Investment (ROI) derived by the investors.

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References

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Published

2021-01-02

How to Cite

Dhar, P., & Banerjee, S. (2021). Does Value Averaging Score Over Rupee Cost Averaging? : Rupee Cost Averaging. Advancement in Management and Technology (AMT) , 1(3), 29-33. https://doi.org/10.46977/apjmt.2021v01i03.005

Issue

Vol. 1 No. 3 (2021): Asia-Pacific Journal of Management and Technology

Section

Original Article

Copyright (c) 2021 Asia-Pacific Journal of Management and Technology

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

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