Two instalments, one clear lesson
Illustrative example: invest ₹1,000 at a NAV of ₹100 and receive 10 units. Invest another ₹1,000 after the NAV falls to ₹80 and receive 12.5 units. You now have 22.5 units for a total contribution of ₹2,000.
At the second purchase’s NAV of ₹80, those units are worth ₹1,800. You bought more units in the second instalment, yet the combined position is down ₹200. Your average cost is approximately ₹88.89 per unit, above the current NAV.
What the schedule actually changes
The schedule divides your purchases across dates. It removes the need to choose a single entry date for the entire contribution stream. It does not change the securities inside the scheme or remove their underlying risks.
A falling market is therefore not automatically a success or failure of the method. The buying arithmetic and the portfolio’s later outcome are separate questions. Longer participation also does not turn a risky asset into a promised-return product.
Read your return correctly
Check contributions and withdrawals using their actual dates. A scheme’s lump-sum return does not describe a series of monthly purchases. Compare the same plan and option, and distinguish money contributed from money earned.
Before interpreting any dashboard percentage, ask what cash flows and end date it uses. Keep the fund’s mandate and the goal’s time horizon visible alongside the return number.