What is rupee-cost averaging?

Podcast Duration: 07:44
Namaskar dosto. Angel Broking ke iss podcast mein aapka swagat hai.

Dosto rupee-cost averaging is a neat trick to increase your chances of profitability in the stock market. Funda toh simple hai. Ek fixed amount of investment, fixed intervals se kiya jata hai. For example Rs 750 per week. Amount is fixed aur interval yaani ki frequency bhi fixed hai. Aise karne se, share price kam hone se zyaada shares khareeda jata hai aur share price uchi hone se kam shares khareeda jata hai. English mein ek kahav hai - make hay while the sun shines. Issi tarah jab stock price kam hai, zyaada khareedhna advisable rehta hai

Kya rupee-cost averaging aapke liye sahi hai? Agar aapko stock market mein kam experience hai, ya aapko har din stock price me dhyaan dene ke liye time nahi hai, ya aapko predictions karne me takleef aur tension ho rahi hai toh Rupee-Cost averaging can be a good option for you. Kaafi seasoned stock market investors bhi, experience hone ke bavajud bhi, iss approach ko apnaa lete hai

Introduction toh ho gaya, ab dekhte hai how does it work. Agar aap har maheene Rs 4000 worth stock Angel Broking app pe khareed rahe ho for example, toh pahle hafte me soch lo stock price was Rs 100 per share, too aapko 40 shares mil jayega. Dusre maheene mein, ho sakta stock price is Rs 80 per share. Aapko dusre maheene me woh same Rs 4000 mein 50 shares mil jayegi. Toh total Rs 8000 mein aapko 90 shares mila which is an average/midway buy price.

Ho sakta hai aap already rupee-cost averaging ka faayda le bhi rahe ho. Agar aap apne mutual fund investments ke liye SIP (systematic investment plan) use kar rahe ho, toh you are already using the rupee-cost averaging approach. Aapne notice kiya hoga ki monthly statement ya receipt mein "number of units bought" value keeps changing every month or every receipt.

Rupee-cost averaging approach mein kamiyaab rahne ke liye, 4 best practices hai.

Investment long-term rahna chahiye
Sizeable profits in rupee-cost averaging ya SIP sirf long term mein dekha jata hai. Ek do maheene mein aapke capital mein bahut kam fark dikhai dega. Example dvaara bata deta hu. Aap mere kahane me nahi jaanna chahte ho toh saath mein aap bhi amounts likhte jao aur phir hum average nikaal denge Aapka har maheene walla investment amount hai Rs 4000 air soch lo aapne 6th Janvari 2020 me apna SIP suru kiya:

6th Janvari me aapne Rs 4000 mein Rs 40 per share mein 100 shares liya
February mein aapne Rs 4000 mein Rs 48 per share mein 83.33 shares liya
March mein aapne Rs 4000 mein Rs 32 per share mein 125 shares liya
April mein aapne Rs 4000 mein Rs 30 per share mein 133.33 shares liya
May mein aapne Rs 4000 mein Rs 28 mein 142.85 shares liya
June mein aapne Rs 4000 mein Rs 30 mein 133.33 shares liya
July mein aapne Rs 4000 mein Rs 40 mein 100 shares liya
August mein aapne Rs 4000 mein Rs 42 mein 92 shares liya
September mein aapne Rs 4000 mein Rs 44 mein 90.92 shares liya
October mein aapne Rs 4000 mein Rs 45 mein 88.88 shares liya
November mein aapne Rs 4000 mein Rs 46 mein 86.95 shares liya
December mein aapne Rs 4000 mein Rs 40 mein 100 shares liya.

Aapka total investment hai Rs 48,000.
Total number of shares bought hai 1276.59
Average share price hai Rs 37.60

Aise across a few years and a few different SIPs aap apna earnings bada sakte ho.

Toh yeh raha rupee-cost averaging approach mein successful rahna ka first best practice- invest for the long term.

Best practice number 2 hai - do not panic
Dost horror filmon mein ek scene hamesha rehta hai jaha pe sabse fattu aadmi ko bhoot se mulakaat hits hai aur woh jor se cheek ke baag jata hai. Vaise math bano please. Emotional aur scared ho ke share price drop hone se turant investment branch karna advisable nahi hai kyunki phir you are missing out on buying shares at a low rate. Jaise abhi ke abhi many investors are confused about whether to continue with their SIPs or whether to buy in at this point. This is a buyer's market. Share prices kam hai. Aap abhi apna investment nikalna chahte ho toh you will be selling at a low price, undergoing a loss. Similarly aap abhi khareedne jaoge toh you are buying cheap - aage profits hone ki bahut possibility hai.

Best practice number 3 - Fixed amount aapke liye possible rahna chahiye

Pahla installment pay karte samey sirf returns ko dekh ke lalachi mat bano. Agar aap abhi ke abhi invest kar rahe ho kyunki aapke paas job security hai yeh bhi consider karo ki ghar me reh ke aapke paas paise hai lekin kya lockdown ke baad, jab aapko spending karneka mauka milega, kya tabhi bhi aapke paas paise rahege? Reasonable amount choose karo. Yeh nah competition hai nah challenge. Kai barson ke liye, har maheene yeh amount pay karna mumkin rahna chahiye.

Best practice number 4 - Diligence yaani ke self control in investing at fixed intervals is required Ice-cream gala kharaab hone ke bhavajood khate ho? Diet kabhi nahi kar pate ho? Ho sakta hai aapka self control kam hai. Aapko self control ki zarurat hogi hi boss. Every month chahe girlfriend ya boyfriend ka birthday ho, ya music festival ho ya serious cheez jaise aapke bacho ka school fees pay karne ka deadline, ya parent ka operation… jo bhi ho jaye aapko har maheene (ya har hafte whatever interval you have chosen) apna fixed amount bharna hi padega. Kya aapke paas yeh self control hai? Nahi bhi hai you can opt for direct debit. Salary 1st to 5th of the month tak aa jata hai? Month ke 6th pe apne SIP ya stocks ke liye direct debit set up karo.

Dosto, like everything stock market-related there are no guarantees even when it comes to making profits using the rupee-cost averaging approach. Lekin profits milne ki chances badha sakte ho. Try karna chahte ho? You can begin with a small amount. Angel Broking app ko download karo and comfortably online SIP karna suru karo.