voluntary accumulation plan(redirected from Contractual Plans)
Voluntary accumulation plan
Arrangement allowing shareholders of a mutual fund to purchase shares over a period of time on a regular basis, and in so doing take advantage of dollar cost averaging.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Voluntary Accumulation Plan
An investment strategy in which shareholders of a mutual fund to buy more and more shares in the fund on a regular basis. It especially refers to situations in which a shareholder puts in a fixed amount of money on a regular basis, regardless of how many shares that amount buys. Generally speaking, this lowers the average price one pays per share. Thus, if one buys using a voluntary accumulation plan and later sells all shares at once, this could result in a higher profit. It is also called a contractual plan.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
voluntary accumulation plan
A plan to acquire additional shares in a mutual fund on a more or less regular basis, at the discretion of the shareholder.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.