Accumulation Shares

Accumulation shares refer to a type of mutual fund or exchange-traded fund (ETF) where the income generated by the fund, such as dividends or interest, is automatically reinvested back into the fund rather than distributed to investors as cash payouts. This reinvestment helps to increase the value of the investor's holdings over time by compounding the returns. Accumulation shares are popular among long-term investors who aim to maximize their investment growth and prefer to defer receiving income until they decide to sell their shares.