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Automatic Investment Plan |
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Automatic Investment Plan An agreement in which dividends on a security are used to buy more shares of the same security, rather than disbursed to the investor in cash. Automatic reinvestment plans are relatively common in mutual funds; investors agree to use dividends and other capital gains to reinvest in more shares of the mutual fund. While this involves assuming more risk in the mutual fund, it carries the possibility of higher returns. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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She should instead put that money, along with the $3,000 already accumulated, into an automatic investment plan as part of a Uniform Gift to minors custodial account or 529 College Savings plan in 7-year-old Julian's name. The initial minimum investment is only $50 when establishing an Automatic Investment Plan and applying online through the Military Officers Association of America's website (www. Some brokerage firms or mutual fund companies will waive their minimums if you sign up for an automatic investment plan. |
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