periodic payment plan

periodic payment plan definition - business

periodic payment plan

A plan in which an investor agrees to make monthly or quarterly payments to a mutual fund as a method of accumulating shares over a period of years. The periodic payment plan's stipulation of fixed periodic contributions results in dollar-cost averaging for the investor. See also plan completion insurance.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.