Value-cost averaging (VCA) -

Sounds good and is interesting. Modified SIP @ rediff article.

- Systematic investment plans (SIPs) concentrate on cost.

- Value-cost averaging (VCA) is sophisticated version of the SIP, which concentrates on value rather than cost

- All you do is set a monthly portfolio value target. Then you buy or sell the requisite amount of units to meet that target. For example, say you set a portfolio value target of Rs 1,000 growth per month. In month one, your chosen instrument is trading at Rs 13. So, you buy 77 units. Next month, the price is down to Rs 12. Your portfolio value is Rs 924. You buy Rs 1,076 worth of units -- that's 90 units. You now own 167 units. Month three, the price jumps to Rs 20. Your portfolio is now worth Rs 3,340. Since this exceeds your target, you sell Rs 340 worth or 17 units at Rs 20. And so on.

- One difference in the mechanics between an SIP and a VCA is that a VCA incorporates an automatic method of booking profits at high prices as well as a system for buying more units at low prices. The profit-booking can boost returns by a massive degree.