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SIPs: How rupee cost averaging works


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communalmedia
Thanks
by communalmedia on Sep 09, 2012 03:10 PM

for your silly & stupid advice as above. I would prefer to invest in FD to safeguard my capital.

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Raghunathan N
Not exactly correct
by Raghunathan N on Sep 04, 2012 08:09 AM  | Hide replies

The values given in the example are only theoritical and "may or maynot" be correct in practice. What will happen if the price was more than 10 for most of the period, and comes back to 10 at the end of year?? The customer will surely end up in loss. So, all these depend on the actual performance and theories are not 100% correct. As no one is able to predict the "actual" performance of any share or MF, such stories are only to attract more customers to the market.

Anyway, how 362 x 10 becomes 3622??

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RAJMOHAN SREEKUMARAN
Re: Not exactly correct
by RAJMOHAN SREEKUMARAN on Sep 05, 2012 01:18 AM
For you last question, I believe 362 is rounded figure of 362.2.

Number of shares has been rounded for each month for e.g: 300/10.5 is 28.57 but rounded to 29 in the month of February. I did not check if the total shares really comes to 362.2 but this is my guess.

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