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Monthly Investment Plan

   Also found in: Acronyms 0.02 sec.
Monthly investment plan
A plan in which a certain amount is invested each month in order to benefit from dollar cost averaging.

Monthly Investment Plan
An investment plan or vehicle in which the investor adds a small amount each month to the portfolio. Perhaps the most common type of monthly investment plan is a retirement account. For different retirement accounts, one makes a monthly contribution, which is then invested so as to provide a steady return when the account holder reaches retirement. However, any investment vehicle may be made into a monthly investment plan; for example, one may make a monthly contribution to a mutual fund.


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