Automatic Investment Plan - AIP

AAA

DEFINITION of 'Automatic Investment Plan - AIP'

An investment program that allows investors to contribute small amounts of money, such as $20 a month in regular intervals. Funds are automatically deducted from the investor's checking/savings account or paycheck and invested in a retirement account or mutual fund.

INVESTOPEDIA EXPLAINS 'Automatic Investment Plan - AIP'

This is one of the best ways to save money. By "paying themselves first" many people find they invest more in the long run. Their investments are treated as another part of their regular budget. It also forces a person to pay for investments automatically, which prevents them from being able to spend all of their disposable income.

RELATED TERMS
  1. Systematic Investment Plan - SIP

    This is a plan where investors make regular, equal payments into ...
  2. Voluntary Accumulation Plan

    An investment method in which a retail investor periodically ...
  3. Value Averaging

    An investing strategy that works like dollar cost averaging (DCA) ...
  4. Compounding

    The ability of an asset to generate earnings, which are then ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Direct Stock Purchase Plan - DSPP

    An investment service that allows individuals to purchase a stock ...
Related Articles
  1. Voluntary 401(k) Contributions: A Thing ...
    Retirement

    Voluntary 401(k) Contributions: A Thing ...

  2. Mutual Fund Basics Tutorial
    Mutual Funds & ETFs

    Mutual Fund Basics Tutorial

  3. What is the minimum amount of money ...
    Retirement

    What is the minimum amount of money ...

  4. What does a mutual fund's beta coefficient ...
    Mutual Funds & ETFs

    What does a mutual fund's beta coefficient ...

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center