Investment Glossary

A strategy where an investor regularly contributes large or small amounts to a fund while reinvesting related income in an attempt to increase the value of the portfolio over time. With mutual funds, an accumulation plan can be a formal arrangement in which an investor contributes a pre-determined amount to the fund on a regular basis. The investor can then accumulate a larger and larger investment in the fund via these contributions and the increase in value of the fund's portfolio. An accumulation plan can be useful for investors who wish to build their positions in a mutual fund over time.