Hi Suchi,
Well to start off, Value Averaging Investment is a new theory which is gaining favour with wealth managers and mutual funds. Also some say that it might replace the conventional systematic investment plans (SIP) strategy.
Value averaging investment (VAI), the technique allows investors to determine the size of the investment needed (at the time of investing) to get desired returns. Value averaging works much like rupee cost averaging, which forms the basis of systematic investment plans.
In value averaging, the investor sets a target growth rate or amount for his portfolio each month, and then adjusts the next months contribution, according to the relative gain or shortfall made on the original asset base.
You may try reading this article...its really helpful
http://economictimes.indiatimes.com/personal-finance/mutual-funds/mf-news/Value-averaging-investment-may-replace-old-plans-one-SIP-at-a-time/articleshow/5118080.cms :thumb: