Should I stop SIP when market crashes?

Absolutely NOT! Crashes are when RCA benefits most. You're buying units at discounted prices. Stopping SIP during crashes is the worst thing you can do.

Is rupee cost averaging a guaranteed strategy?

It reduces risk and average cost but doesn't guarantee profits. If the investment permanently declines, RCA only means you lose less than lump sum. Choose quality investments.

Rupee Cost Averaging — SIP's Hidden Power

Rupee cost averaging is the automatic benefit of investing a fixed amount regularly (SIP). You buy more units when NAV is low and fewer when NAV is high, reducing your average cost.

How It Works

₹10,000 monthly SIP. Month 1: NAV ₹100 → 100 units. Month 2: NAV drops to ₹80 → 125 units. Month 3: NAV recovers to ₹100 → 100 units. Average cost: ₹92.3 per unit vs ₹93.3 average NAV. You outperformed!

When It Shines

Volatile markets (buy heavily at low prices). Market crashes (SIP automatically 'buys the dip'). Extended bear markets (accumulate cheap units for the eventual recovery). The worse the volatility, the more RCA helps.

Limitations

In consistently rising markets, lump sum beats SIP (less time at lower prices). RCA only works if the market eventually recovers. It doesn't protect against permanent value destruction.