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.

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.

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.
References in periodicals archive ?
With services for mutual funds, retirement plans, contractual plans, and 529 plans, Boston Financial is well recognized for its best-practices and service excellence.
For these hospitals, the Contractual Plans, Medicaid, and Commercial Insurance CMIs load highly on the first factor.
As in our previous analyses, Workmen's Compensation and Other Government Insurance exhibit the lowest factor loadings, while the Commercial Insurance and Contractual Plan loadings exhibit the highest weights.
The Commercial Insurance, Contractual Plan and Workmen's Compensation CMIs load highest on the first factor.
With the wide availability of much less costly alternative products, regulators also question the need for contractual plans to continue to be sold.
The ABCs of Mutual Funds explains precisely how mutual funds, contractual plans, hedge funds, exchange traded funds, folios, unit investment trusts, and variable annuities work, as well as the differences between full service and discount dealers, the legal obligations of stockbrokers, and much more.
In fact, a part of the Investment Company Act of 1940 that was amended in 1970 specifically provides for contractual plans.
introduced a bill (HR 5011) that would ban the sale of mutual fund contractual plans outright.
The continued sales growth demonstrates our ability to meet project milestones and deliver advanced systems, products and services according to contractual plans.
Although potentially providing returns equivalent to other products if steady payments are made over a long period, these contractual plans proved more expensive to most military purchasers than other widely available alternative products because many military members stopped making payments in the first few years.
The Guidelines for Advance Consent Marketing were created to accurately define and regulate Advance Consent Plans, which are contractual plans or agreements whereby the consumer consents in advance to receive and pay for goods or services in the future on a continuing or periodic basis, unless and until the consumer cancels, without the consumer having to give further consent prior to each shipment or billing event.
Cellular One offers no term commitment products such as Cellular One-2-3 -- a complete pre-paid cellular kit in-a- box, as well as the traditional contractual plans.