Securities investments in the market using a fixed set of criteria.

An investment strategy which eliminates emotional decisions by following a specific set of rules. One example is dollar cost averaging.

An investment technique. One formula calls for the shifting of funds from common shares to preferred shares or bonds as a selected market indicator rises above a certain predetermined point - and the return of funds to common share investments as the market average declines. (See: Dollar Cost Averaging)

These are investment strategies. One formula involves shifting funds from common shares to preferred shares or bonds as the stock market rises above a predetermined point - and returning funds to common shares as the stock market declines.

When you invest on a schedule-as you might with dollar cost averaging-or make investments to maintain a pre-determined asset allocation, you're using a technique known as formula investing. The appeal of this approach, for investors who follow it, is that it eliminates having to agonize over when to buy or sell. But it does not guarantee your portfolio will grow in value.