The money is automatically invested regularly into a specific mutual fund scheme. You are allotted certain number of units based on the ongoing market rate (called NAV or Net Asset Value) for the day. Every time you invest money, additional units of the scheme are purchased at the ongoing market rate and added to the portfolio. Hence, units are bought at different rates and investors benefit from Rupee- Cost Averaging and the Power of Compounding.
Modified on: Fri, 17 May, 2019 at 12:44 PM
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