# Mutual Fund Investments

**URL:** <https://community.aliceblueonline.com/t/mutual-fund-investments/8219>\
**Category:** Educational insights\
**Created:** [September 27, 2023, 9:27am UTC](https://community.aliceblueonline.com/t/mutual-fund-investments/8219 "2023-09-27T09:27:23Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Savitha\_Kannan](https://sea1.discourse-cdn.com/flex015/user_avatar/community.aliceblueonline.com/savitha_kannan/32/2418_2.png) [@Savitha\_Kannan](https://community.aliceblueonline.com/u/Savitha_Kannan)\
**Post date:** [September 27, 2023, 9:27am UTC](https://community.aliceblueonline.com/t/mutual-fund-investments/8219/1 "2023-09-27T09:27:23Z")

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Why do many seasoned Indian investors believe in the staggering approach to mutual fund investments?

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**Author:** ![abhilash\_hazarika](https://sea1.discourse-cdn.com/flex015/user_avatar/community.aliceblueonline.com/abhilash_hazarika/32/2653_2.png) [@abhilash\_hazarika](https://community.aliceblueonline.com/u/abhilash_hazarika)\
**Post date:** [September 28, 2023, 5:01am UTC](https://community.aliceblueonline.com/t/mutual-fund-investments/8219/2 "2023-09-28T05:01:26Z")

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# Why do many seasoned Indian investors believe in the staggering approach to mutual fund investments?

Hello! Being a seasoned investor in the Indian mutual fund market for over a decade, I’ve often been asked about the staggering approach. Let me share my perspective:

It’s about spreading out investments over time, rather than investing a lump sum amount all at once.

Advantages

- Mitigating Volatility: The Indian stock market, like many others, is prone to volatility. By staggering investments, one can average out the buying cost over time.  
For instance:
  - Month 1: ₹1000/unit
  - Month 2: ₹950/unit
  - Month 3: ₹1050/unit
  - Average Price: ₹1000/unit

- Benefitting from Rupee Cost Averaging: As you invest the same amount regularly, you buy more units when prices are low and fewer when they’re high. This can potentially lower the average cost over time.

| Year | Lump Sum Return | Staggered Return |
| --- | --- | --- |
| 2019 | 12% | 14% |
| 2020 | 7% | 9% |

Note: The above table is a hypothetical representation.

- Cash Flow Management: For salaried individuals, staggering can align with their monthly inflow, making investments more manageable.
- Disciplined Approach: Helps in inculcating a disciplined investment behavior.
- Flexibility: If market conditions are unfavorable, one has the option to hold off or adjust the investment amount.

In summary, the staggering approach acts as a shock absorber against immediate market downturns post lump-sum investments. Given the dynamics of the Indian market, this strategy can be particularly effective.