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Periodic Payment Plan
(redirected from Periodic Payment Plans)

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Periodic payment plan
Accumulation of capital in a mutual fund by making regular payments on a monthly or quarterly basis.

Periodic Payment Plan
An agreement between a debtor and a creditor whereby the debtor makes payments on a portion of the principal and/or interest on a loan or other liability on a monthly or quarterly basis. Nearly all loans are repaid on a periodic payment plan.

periodic payment plan
A plan in which an investor agrees to make monthly or quarterly payments to a mutual fund as a method of accumulating shares over a period of years. The periodic payment plan's stipulation of fixed periodic contributions results in dollar-cost averaging for the investor. See also plan completion insurance.


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Congress in 1970 amended its landmark Investment Company Act of 1940 to allow for periodic payment plans (Section 27).
The periodic payment plans involved are Fidelity Destiny Plans I & II, Pioneer Independence Plans, AIM Summit Investors Plans II and Templeton Capital Accumulation Plans II.
 
 
 
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