What is an automatic investment plan?
An automatic investment plan is an excellent way to continuously invest in the market without trying to time its highs and lows. Many mutual fund companies will allow you to open up an account with a smaller initial investment if you enroll in an automatic investment plan – even for with as little as $50 a month.
Under the Automatic Investment Plan (AIP) also called Systematic Investment Plan (SIP), the investor is given the option of investing at a specified frequency of months in a specified scheme of the Mutual Fund for a constant sum of investment. AIP allows the investors to plan their savings through a structured regular monthly savings program.
With a ShareBuilder Automatic Investment Plan you can invest any dollar amount you want on a weekly or monthly basis and have the funds automatically pulled from your checking or savings account or through payroll deduction. With no account or investment minimums, ShareBuilder makes it extremely simple to get started.
Many persons who choose to invest money in mutual funds and other types of investment strategies choose to use an automatic investment plan. Essentially, an automatic investment plan is a simply authorization to withdraw a fixed amount of money from a savings or checking account on a recurring basis. The withdrawn funds are then invested on the behalf of the shareholder or investor, either by purchasing additional shares of stocks that are already owned by the investor, or purchasing stocks for a brand new addition to the investment portfolio. Here is some background on how the automatic investment plan works, and why it can be such an easy way to build an investment portfolio. Setting up an automatic investment plan is as simple as establishing automatic transfers for utility bills, insurance payments and other types of electronic withdrawals. After consulting with the entity that manages the investments, the investor determines an amount that can be debited from an existing checking
An automatic investment plan allows you to save regularly and automatically. For as little as $100 per month or $300 per quarter, an automatic investment plan will let you purchase your choice of over 2,500 mutual funds for your RBC Direct Investing RSP or investment account, paid for from your chequing or savings account. What is a Pre-authorized Contribution Plan? You can pre-arrange to have cash contributions transferred from your chequing or savings account into your RSP or non-registered account, or you can arrange to automatically purchase mutual funds on a monthly basis with cash already in your account. Automatic Investment Plans are not available for RESP accounts. Automatic investment plans are only available for the Canadian dollar portion of your account. In order to sign up for an automatic investment plan or a pre-authorized contribution plan, you may download the automatic investment plan form or a pre-authorized contribution plan form, complete the form, and send it to
