contractual plan

Contractual plan

A plan in which fixed dollar amounts of mutual fund shares are purchased through periodic investments, usually featuring some sort of additional incentive for the fixed period payments.

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.

contractual plan

A program in which an investor in a mutual fund agrees to invest a fixed amount of money at regular intervals in accumulating shares. For example, an individual may contract to invest $100 per month with a selected fund regardless of what the market does or at what price the fund's shares sell throughout the period. See also dollar-cost averaging, load spread option.
References in periodicals archive ?
The municipality of kuortanee asks for your offer from the renovation of the center water pipeline as a whole, in accordance with the contractual plan prepared by aluetaito oy on 15 february 2018.
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.
Securities regulators' examinations of contractual plan sales were also hampered by lack of standardized data showing whether customers were benefiting from their purchases.
This initiative underpins the efforts made by local, national and Community authorities under the Contractual Plan concluded between the State and the Guadeloupe Region and the 2000-2006 Single Programming Document (SPD), the main thrust of which is to promote enterprise development.
And players who have been born and played all their rugby in England, are another category who have to be fitted into the complicated contractual plan.
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.
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 bill also would require insurance agents selling products on military bases to disclose that subsidized coverage might be available from the federal government, and it would ban outright the sale of mutual fund contractual plans.