Monthly investment plan

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Monthly investment plan

A plan in which a certain amount is invested each month in order to benefit from dollar cost averaging.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Monthly Investment Plan

An investment plan or vehicle in which the investor adds a small amount each month to the portfolio. Perhaps the most common type of monthly investment plan is a retirement account. For different retirement accounts, one makes a monthly contribution, which is then invested so as to provide a steady return when the account holder reaches retirement. However, any investment vehicle may be made into a monthly investment plan; for example, one may make a monthly contribution to a mutual fund.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
With vouchers for Child Trust Funds set to end in January, older people are also investing in monthly investment plans, savings accounts and pension schemes for grandchildren.
By all means build up a core portfolio that way and ideally throw in a spread of monthly investment plans too.
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