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Systematic Investment Plan

   Also found in: Acronyms, Wikipedia 0.03 sec.
Systematic investment plan
An approach involving regular investments in order to take advantage of dollar-cost averaging.

Systematic Investment Plan
An investment strategy in which one makes investments in the same dollar amount at regular times. For example, one may buy $1,000 in Stock A every month. Because this means one buys fewer shares when the price is high and more when the price is low, a systematic investment plan aims to reduce the average cost of the shares one buys. This increases the profit per share when one sells the stock. A systematic investment plan is most common with shares of a mutual fund or a retirement plan. It is also called a constant dollar plan.


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