An arrangement in which mutual fund dividends or capital gains are used to purchase additional fund shares, rather than being distributed. see also automatic investment plan.
A plan offered by a mutual fund in which the fund automatically reinvests all distributions to a shareholder account.
An investment option for mutual fund unitholders in which the proceeds from either the fund's dividends or capital gains, or both, are automatically used to buy more units of the funds.
An investment option available to mutual fund unitholders in which the proceeds from either the fund's dividends, bonus etc. are automatically used to buy more units of the fund.
An option whereby a shareholder, instead of receiving cash payments, elects to have all income and capital gains distributions from an account used to purchase additional fund shares. Even though reinvested, the distributions may be tax-reportable events. Average
this allows clients to reinvest earnings--such as interest, dividends and capital gains--into more shares of a mutual fund.