The smallest investment amount accepted for establishing an automatic investment plan. If this field is dashed out, the fund does not have a plan. If the minimum is zero, then $0 will appear. Where Clsd appears, the fund is closed to new investors.
Benefits
This figure indicates the minimum amount that may be invested in automatic investment plans, whereby funds automatically withdraw a predetermined amount from an investor's checking account on a regular basis. Frequently, the minimum AIP amount is less than the fund's normal minimum investment amount. This allows investors access to funds they may not otherwise enjoy.
Origin
This information is taken directly from the fund prospectus.
For the Pros
In addition to the ease of investment, automatic investment plans allow for a disciplined dollar-cost-averaging. When share prices are low and less shares when share prices are high, is the best method for long-term investing. This method reduces the risk of investing a large lump-sum amount, which can be adversely affected by significant daily market fluctuations.