Periodic payments are a structured series of payments that are disbursed from some type of qualified financial plan. Payments of this type may be generated from an annuity program, any account that carries a fixed term of payments over the course of several years, or a qualified retirement plan.

A plan typically requires monthly investments over a period of 10, 15, or 25 years. Most plans allow an investor to start a plan for a modest sum of money, such as $50 per month. An investor in a periodic payment plan does not directly own shares of a mutual fund. Instead, he or she owns an interest in the plan trust.

People who invest in periodic payment plans own an interest in the plan's trust rather than shares in the fund. Investors may pay higher fees than they would if they invested in fund shares, notably creation and sales charges, and service fees to the plan's custodian.

Periodic payment plans are long-term investment vehicles, and you will almost certainly lose money if you withdraw your investments or terminate your plan during the first few years of the plan, unless you are eligible for a full refund. What fees are charged by the plan?