Accumulation Plan

Accumulation Plan
1. A general financial strategy in which an investor attempts to build the value of his or her portfolio to a desired size.

2. In the context of mutual funds, a formal arrangement in which an investor contributes a specified amount of money to the fund on a periodic basis. By doing so, the investor accumulates a larger and larger investment in the fund through his or her contributions and the increase in value of the fund's portfolio.

1. A prudent accumulation plan is key to building a financial nest egg for retirement. Many investors accumulate investment funds with regular contributions and the reinvestment of dividends and capital gains. Generally, the goal is to keep funds invested, reinvest income and capital gains, and have these compound for as long as possible.

2. An accumulation plan can be useful for investors who wish to build their positions in a mutual fund over time. It also provides the benefits of dollar-cost averaging.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Voluntary Accumulation Plan — An investment method in which a retail investor periodically invests (at its discretion) relatively small amounts of funds into a mutual fund, building a large position over an extended period. By investing savings into a mutual fund gradually… …   Investment dictionary

  • 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. Bloomberg Financial Dictionary …   Financial and business terms

  • Plan idéologique — Idéologie Une idéologie est au sens large, la science d un système d idées imaginées. L idéologie s accompagne de notions, d opinions, de convictions et est parfois constitués en doctrine. Pour Karl Marx, l idéologie sert de masque à la… …   Wikipédia en Français

  • Plan de communication — Stratégie de communication Sommaire 1 Naissance de la stratégie de communication 2 Communication média et hors média 2.1 La publicité communication médias 2.2 …   Wikipédia en Français

  • Plan de rigueur — Politique de rigueur Une politique de rigueur est une politique économique consistant à donner la priorité à la croissance économique de long terme, en luttant contre l inflation et contre l accumulation insoutenable de déficits publics. Une… …   Wikipédia en Français

  • periodic payment plan — accumulation of capital in a mutual fund by making regular payments on a monthly or quarterly basis. Bloomberg Financial Dictionary …   Financial and business terms

  • Capital accumulation — Most generally, the accumulation of capital refers simply to the gathering or amassment of objects of value; the increase in wealth; or the creation of wealth. Capital can be generally defined as assets invested with the expectation that their… …   Wikipedia

  • Marshall Plan — Labeling used on aid packages The Marshall Plan (officially the European Recovery Program, ERP) was the large scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of… …   Wikipedia

  • Content of a business plan — Main article: Business plan This article explains what goes into a business plan and why. It is not specific to any particular kind of business plan, nor does it presume any specific layout. Please do not read the section headings as titles of… …   Wikipedia

  • Share Incentive Plan — The Share Incentive Plan (the ‘SIP’) was first introduced in the UK in 2000. SIP s are an HMRC (Her Majesty s Revenue Customs) approved, tax efficient all employee plan, which provides companies with the flexibility to tailor the plan to meet… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”