Automatic investment program

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.
That's good news for Eschtruth because to get out of the automatic investment programs, an employee has to opt out.
She should also set up an automatic investment program, contributing $150 a month on Morgan's behalf and $50 a month for Jamal.
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.
In automatic enrollment plans, many participants are defaulted into an automatic investment program, such as a target-date fund.
In comparison, in 2004, just 7% of all Vanguard participants were solely invested in an automatic investment program.
In addition to automatic investment programs, many plans offer advice services utilized by a strong number of participants.
AIM) announced today the inclusion of 14 individual fund portfolios as investment options and a corporate automatic investment program among changes being made to The AIM College Savings Plan(SM), effective Oct.
The minimum investment is $25,000 or $10,000 when utilizing the Badgley Funds' automatic investment program.
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).
ShareBuilder's "buy and hold" strategy demands accurate corporate action tracking while the automatic investment programs will benefit from GainsKeeper automated wash sales feature.
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