Investment Methods
Automatic Investment
Definition
What is Automatic Investment?
A recurring investmentAn asset or commitment of money made with the expectation of future income, growth, or both. executed automatically from a bank account or cash balance.
Example in practice
How This Looks in Practice
₦50,000 moves into an index fundA fund designed to track the holdings and performance of a stated market index. each payday.
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Related Terms
Investment Methods
Lump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.
Investment MethodsDollar-Cost Averaging
Investing a fixed amount at regular intervals so the amount buys more units at lower prices and fewer at higher prices.
Investment MethodsSystematic Investment Plan
An arrangement for making scheduled recurring contributions into an investment fund.
Returns & PerformanceTotal Return
The complete investment result from price changes plus income, assuming distributions are included.