Accumulation units or shares

By | 2017-09-13T11:55:03+00:00 13th September 2017|

Funds may issue two types of units or shares to investors in that fund. Accumulation units or shares are those where the income to the fund is not distributed to investors but is automatically retained and reinvested. This results in the fund increasing the value of each accumulation unit or share, but leaving the number of units/shares held unchanged. The opposite situation is where distribution units/shares (sometimes called ‘income’ units/shares) are those where income will be paid to investors on set dates relating to the financial year of the fund.