systematic investment plan

Definition

A program that allows an individual to have a set amount electronically transferred from one account to another at a specified frequency. Examples include stock and mutual fund reinvestment programs, defined contribution plans, mutual fund contribution programs, and automatic withdrawal plans. also called automatic investment plan.

Use this term in a sentence

Each pay day I have 5% of my earnings transferred to a 401k as part of my systematic investment plan.

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You should try and make sure that you have a good systematic investment plan in place and stick to it if you can.

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My grandmother managed to accumulate a fortune in stocks by working hard over the years and continually setting aside money through a systematic investment plan.

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