Voluntary Accumulation Plan
An investment method where a retail investor periodically invests (at their discretion) relatively small amounts of funds into a mutual fund, building a comparatively large position over an extended period.
Investopedia Commentary
By investing savings into a mutual fund gradually over time with a voluntary accumulation plan, an investor is able to build a large investment at their own pace, since their contributions are voluntary (although common practice is to invest a fixed amount at specified intervals). By spreading their contributions over a period of time, investors reap the benefits of dollar-cost averaging, as their fixed dollar amount contributions will buy more shares of a mutual fund when its price is low than when it is high.
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See also: Accumulation, Automatic Investment Plan, Dollar-Cost Averaging - DCA, Mutual Fund, Retail Investor, Savings
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voluntary accumulation plan
- A plan to acquire additional shares in a mutual fund on a more or less regular basis, at the discretion of the shareholder.
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