contractual plan

Contractual plan

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.

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.

contractual plan

A program in which an investor in a mutual fund agrees to invest a fixed amount of money at regular intervals in accumulating shares. For example, an individual may contract to invest $100 per month with a selected fund regardless of what the market does or at what price the fund's shares sell throughout the period. See also dollar-cost averaging, load spread option.
References in periodicals archive ?
The Symantec Elite Program is an easy-to-use contractual plan enabling larger companies to leverage their volume purchasing power to achieve greater value from their software license purchases.
And players who have been born and played all their rugby in England, are another category who have to be fitted into the complicated contractual plan.
Securities regulators' examinations of contractual plan sales were also hampered by lack of standardized data showing whether customers were benefiting from their purchases.
EXHIBIT 6 FACTOR ANALYSIS FOR FINAL SAMPLE Factor 1 Payer Group CMI Mean SD Loadings Communality Contractual Plan 0.
For small and rural hospitals, Medicaid loads highly on Factor 1 along with the Commercial Insurance and Contractual Plan CMIs.
Cellular One offers no term commitment products such as Cellular One-2-3 -- a complete pre-paid cellular kit in-a- box, as well as the traditional contractual plans.
The Guidelines for Advance Consent Marketing were created to accurately define and regulate Advance Consent Plans, which are contractual plans or agreements whereby the consumer consents in advance to receive and pay for goods or services in the future on a continuing or periodic basis, unless and until the consumer cancels, without the consumer having to give further consent prior to each shipment or billing event.
Although potentially providing returns equivalent to other products if steady payments are made over a long period, these contractual plans proved more expensive to most military purchasers than other widely available alternative products because many military members stopped making payments in the first few years.
The continued sales growth demonstrates our ability to meet project milestones and deliver advanced systems, products and services according to contractual plans.
The bill would ban the sale of mutual fund contractual plans and ensure full regulation of life insurance and other financial products sold on military bases.
The ABCs of Mutual Funds explains precisely how mutual funds, contractual plans, hedge funds, exchange traded funds, folios, unit investment trusts, and variable annuities work, as well as the differences between full service and discount dealers, the legal obligations of stockbrokers, and much more.
With services for mutual funds, retirement plans, contractual plans, and 529 plans, Boston Financial is well recognized for its best-practices and service excellence.