Automatic investment program

A program in which an investor can invest or withdraw funds automatically. A mutual fund, for example, automatically withdraws a pre determined specified amount from the investor's bank account on a regular basis.

Dollar-Cost Averaging

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, regardless of Stock A's current price. Because this means one buys fewer shares when the price is high and more when the price is low, dollar-cost averaging aims to reduce the average cost of the shares one buys. This increases the profit per share when one sells the stock. Dollar cost averaging is most common with shares of a mutual fund or a retirement plan. It is also called a constant dollar plan.

References in periodicals archive

A report issued in June by Vanguard of Valley Forge, Pennsylvania, which has nearly $600 billion of defined contribution assets under management, said 40 percent of its participants solely invested in an automatic investment program, compared with 22 percent at the end of 2008.

Boomers'401(k)s coming up short

In comparison, in 2004, just 7% of all Vanguard participants were solely invested in an automatic investment program.

Upfront - September 2011

She should also set up an automatic investment program, contributing $150 a month on Morgan's behalf and $50 a month for Jamal.

Determined to thrive: Tamara Burrowes is committed to lifting her family out of financial hardship. (Family Finances)

For just $2 per transaction ($1 for kids), an investor can set up an automatic investment program to buy stocks like AOL, Cisco Systems, Microsoft, General Motors, General Electric, AT&T, and Dell Computer.

Interested in Stocks? Try a New Service on the World Wide Web

We also focused on funds with relatively low initial investment requirements and those that offer first-time investors an automatic investment program with a minimal outlay to start.

Money in the banks

Sign up for automatic investment programs to authorize your employer to deduct money from your paycheck to fund a retirement plan, such as a 401 (k).

Simplify, organize, and feel better

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.