Investor Glossary-automatic reinvestment planInvestor Glossary-automatic reinvestment planInvestor Glossary-automatic reinvestment planInvestor Glossary-automatic reinvestment planInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Automatic Reinvestment Plan

The HTML to link to this page
 

An automatic reinvestment plan is an arrangement whereby a mutual fund automatically reinvests any gains back into the fund. Most investors look upon mutual funds as a long-term investment and an automatic reinvestment plan is a simple way of keeping profits constantly working in the fund. An automatic reinvestment plan makes reinvesting capital gains and dividends simple and automatic and many investors would rather use an automatic reinvestment plan for gains and dividends rather than take profits out of a fund. The simplicity and automatic nature of an automatic reinvestment plan makes them perfect for many investors. While most funds allow investors to opt out of the automatic reinvestment plan, an automatic reinvestment plan purchasing additional shares in a fund can provide significant growth to an investor's stake in a mutual fund.



Rate this automatic reinvestment plan definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, deferred tax, ex-dividend date, 144a, class C shares, debt service coverage, balance sheet, command economy, stock split, reverse mortgage, wholly-owned subsidiary, average price per share, 1035 exchange, Key Rate Duration, margin rate, VIX, open position, covered put, annual return, per diem, required rate of return, retained earnings, irrevocable trust, risk management, LIBOR, deferred revenue, 401a, in escrow, EBITDA, diluted share, minority interest, FICO score, current ratio, quality assurance, implied volatility, FTSE, APR, dividends payable, labor relations, option premium, cancelled check, stock market close, phantom income, ex-dividend, liquidity ratio, limit order, 1031 exchange, real GDP, Zero Cost Collar


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use