TD Mutual Funds
Pre-Authorized Purchase Plan (PPP)
Whether you're saving for retirement, a down payment on a home or just a rainy day, putting a little away at a time in a Pre-Authorized Purchase Plan can make a lot of sense.
It's a convenient service that allows you to automatically invest a set amount at regular intervals in TD Mutual Funds or add to a TD Managed Assets Program Portfolio.
You can start with as little as $25 per fund on a regular basis when you invest in TD Mutual Funds, and you can make contributions on a weekly, biweekly, semi-monthly, monthly, quarterly, semi-annual or annual basis.
Plus, it's easy to set up, affordable to maintain, and thanks to the power of compound growth, highly rewarding.
The Benefits
The TD Mutual Funds Pre-Authorized Purchase Plan is not only an easy, affordable and rewarding way to save, but it also allows you to take advantage of dollar-cost averaging, an approach that can actually lower the costs of investing.
This is how it works: as the price of mutual fund units fluctuate, by investing regularly, you will automatically buy more of an investment when prices are low and less when prices are high.
As the chart below illustrates, this form of investing can, over time, result in a lower average cost per unit.
Let's say you have $60 a month to invest in a particular fund that fluctuates in price.
| Dollar-Cost-Averaging |
| January Price = $5.00 |
You Buy - 12 units |
| February Price = $3.00 |
You Buy - 20 units |
| March Price = $6.00 |
You Buy - 10 units |
| 3-Month Cost = $180.00 |
You Buy - 42 units |
In January, this buys you 12 units. In February, the price of the units declines to $3, which allows you to purchase 20 units. Finally, in March, the price rises to $6, which buys you 10 units.
In three months, you will have invested $180 and purchased 42 units. Over the three-month period, your average cost per unit would be just $4.29.
Get Started Today!
You can get started for as little as $25 per fund on a regular basis and this amount can be automatically transferred from your bank account into the TD Mutual Funds Account of your choice on a weekly, biweekly, semi-monthly, monthly, quarterly, semi-annual or annual basis.
Start enjoying all the benefits of a Pre-Authorized Purchase Plan in one of three easy ways. Simply choose one of the options below to open a new account, or to transact on your existing account:
|
