Systematic Investment Plan
Definition
What is Systematic Investment Plan?
An arrangement for making scheduled recurring contributions into an investmentAn asset or commitment of money made with the expectation of future income, growth, or both. fund.
Example in practice
How This Looks in Practice
A standing instruction transfers $25,000 into a mutual fundA pooled investment vehicle that combines money from many investors into one professionally managed portfolio. on the 25th of every month.
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Related Terms
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 MethodsSubscription
The process of buying new units in a fund by submitting money and a valid instruction.
Returns & PerformanceTotal Return
The complete investment result from price changes plus income, assuming distributions are included.