plan company

(redirected from Plan Companies)

Plan Company

A company that invests in mutual funds on behalf of shareholders. Customers purchase shares, and the company uses the revenue to buy shares in one or more mutual funds. Plan companies work with shareholders to determine a specific expected return over a certain number of years and invest in mutual funds accordingly. This allows shareholders the flexibility of a changing portfolio without needing to manage its day-to-day maintenance. These mutual funds are sometimes called contractual plan companies. See also: Periodic payment plan.

plan company

A company that receives customer payments and purchases mutual fund shares when the customers wish to purchase shares in a fund on a periodic payment plan. Thus, the plan company acts as middleman in collecting the payments and crediting customer accounts.

References in periodicals archive ?

He teaches the dirty little secrets that retirement plan companies have used to drive the average participant fee in small employer plans to 4% nationally, while stating that no employer would have agreed to such fees if they truly understood what they were subjecting themselves and their employees to.

401 Confidential by Michael J. Marini Released for Worldwide Distribution

In December that year, Borowski started working with fellow fraudster James Conroy who had set up a new company called Information Station which sold funeral plans on behalf of funeral plan companies to the public.