Constant dollar plan - A plan which enables investors to accumulate shares in a mutual fund by purchasing them on a regular basis (for example monthly) with a fixed dollar amount. The dollar amount buys more shares when the price is low than when it is high, and over time the investor will have accumulated shares at a cost which is neither high nor low, but average for the period in question. Hence the other name for this process - "dollar cost averaging". In the UK, the same principles apply to savings plans for unit trusts, and the process is called "pound cost averaging".
Constant dollar plan : a plan which enables investors to accumulate shares in a mutual fund by purchasing them on a regular basis (for example monthly) with a fixed dollar amount. the dollar amount buys more shares when the price is low than when it is high, and over time the investor will have accumulated shares at a cost which is neither high nor low, but average for the period in question. hence the other name for this process - "dollar cost averaging". in the uk, the same principles apply to savings plans for unit trusts, and the process is called "pound cost averaging".
Constant dollar plan