Automatic Investment Plans

Funds typically give you two ways in which to invest:

Single-sum — You can invest any amount you want at one time, as long as you meet the minimum requirements of that fund. Some funds have no minimum for opening an account or no minimum for additional share purchases, while others do.
Automatic investment — Most funds offer plans that automatically and regularly transfer set amounts from your bank account or paycheck. This is a great way to save money on a routine basis.

Dollar-cost averaging

Making regular, automatic investments is a great way to take advantage of market fluctuations. With dollar-cost averaging, you invest a fixed amount on a regular basis, regardless of current market trends. When prices are high, you'll buy fewer shares. But when prices are low, you'll buy more, which can potentially lower your average cost per share.

An Automatic Investment Plan does not assure a profit and does not protect against a loss in a declining market.

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