Investment Methods

Reinvestment

Definition

What is Reinvestment?

Using distributions or proceeds to buy additional units instead of receiving cash.

Example in practice

A $12,000 distribution is used to purchase more units, increasing the investor's future participation in the fund.

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A single, relatively large investment made at one time instead of through repeated contributions.

Investing a fixed amount at regular intervals so the amount buys more units at lower prices and fewer at higher prices.

An arrangement for making scheduled recurring contributions into an investment fund.

The complete investment result from price changes plus income, assuming distributions are included.

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