A plan in which fixed dollar amounts of mutual fund shares are purchased through periodic investments, usually featuring some sort of additional incentive for the fixed period payments.
Program to accumulate mutual fund shares by regularly investing a fixed amount over a 10- or 15-year period.
A program in which a one agrees to invest an amount in a plan at regular intervals for a number of years. In exchange, investors in these plans commonly receive other benefits, such as decreasing term life insurance and tax benefits.
A program in which a legal vehicle (plan company or participating unit investment trust) agrees to invest a fixed amount in a fund at regular intervals for 10 or 15 years. In exchange, investors in these plans commonly receive other benefits, such as decreasing term life insurance.
A method of purchasing mutual funds where the investor signs a contract to make equal monthly payments for a period of years. They are referred to as front-end load plans since the sales charge during the first year is 50%. They are also called penalty plans. Contractual plans are usually organized as a unit investment trust. An investor may choose a contractual plan with a spread load option. Rather than the front and 50% sales charge, the sales charge is spread so that the maximum charge during the first four years is 20%.
A type of accumulation plan in which an investor in mutual funds makes a firm commitment to invest a given amount of money over a given time.
An investment plan for a mutual fund by which an investor agrees to invest a fixed sum of money at specified intervals over an extended period of time. (See Front-end [Prepaid Charge] Plan)
An arrangement whereby an investor contracts to purchase a given amount of a security by a certain date and agrees to make partial payments at specified intervals.
