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Monthly Investment Plan

   Also found in: Acronyms 0.03 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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By all means build up a core portfolio that way and ideally throw in a spread of monthly investment plans too.
As a matter of fact, through the Monthly Investment Plan you can buy a fraction of a share, although the Plan requires a minimum investment every month.
DRIPs and DSPPs are particularly economical for investors with small holdings or those who wish to dollar cost average through a monthly investment plan," said Lars Johnson, Chief Financial Officer.
 
 
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