Article’s

This research provides an expert-level evaluation of Rupee Cost Averaging (RCA) and its evolution into flexible and value-based Systematic Investment Plan (SIP) models within the Indian equity market from 2000 to 2025. While traditional SIPs have democratized equity participation through a fixed-amount approach, this study analyses the quantitative efficiency of adaptive models that leverage valuation triggers like Price-to-Earnings (P/E) ratios and the Yield Gap. Through an empirical lens, the study identifies a significant “behaviour gap” of 1.5% to 2% annually, wherein retail investors often sabotage mathematical cost-averaging benefits by pausing SIPs during market downturns. Analysis of a 22-year dataset (2003–2024) reveals that intra-month timing specifically aligning SIPs with Futures and Options (F&O) expiry volatility yields a tactical advantage of 0.5% to 2.5% annually. Furthermore, while Value Averaging (VA) generated higher returns in 352 out of 359 analysed Indian companies, the study highlights the practical liquidity constraints that make it more suitable for high-net-worth individuals than salaried retail investors. The findings challenge the industry narrative of consistent 12–15% returns, revealing an empirical 20-year pre-tax CAGR of 6.7% for Nifty 50 SIPs, and provide strategic recommendations for navigating volatility through systematic automation and regime-aware asset allocation.