Voluntary Accumulation Plan (redirected from Contractual Plans)

Voluntary accumulation plan

Arrangement allowing shareholders of a mutual fund to purchase shares over a period of time on a regular basis, and in so doing take advantage of dollar cost averaging.

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Voluntary Accumulation Plan

An investment strategy in which shareholders of a mutual fund to buy more and more shares in the fund on a regular basis. It especially refers to situations in which a shareholder puts in a fixed amount of money on a regular basis, regardless of how many shares that amount buys. Generally speaking, this lowers the average price one pays per share. Thus, if one buys using a voluntary accumulation plan and later sells all shares at once, this could result in a higher profit. It is also called a contractual plan.

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voluntary accumulation plan

A plan to acquire additional shares in a mutual fund on a more or less regular basis, at the discretion of the shareholder.