Definition of Voluntary Accumulation Plan

voluntary accumulation plan is a method such as dollar cost averaging by which an investor regularly makes contributions to acquire mutual fund shares.

Applying "Voluntary Accumulation Plan" to Securities Exams:

Many investors will set up voluntary accumulation plans to contribute a set amount money in fixed intervals to invest into mutual fund portfolios. Dollar cost averaging is the most popular type of voluntary accumulation plan. Over time investors should end up with an average price that is lower than their average cost per share.

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