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contractual plan

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Financial Dictionary

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.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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