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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Constant Dollar Plan

Definition:

Imagine you buy a mutual fund and inject money into it every so often: your money would grow a lot faster than if you just bought the mutual fund and walked away, right?

A constant dollar plan is just that: a way of investing in mutual funds where you add a constant sum of cash each month (or each quarter) to buy more shares of the fund.