Börsenlexikon: Accumulation

The term reinvestment refers to processes in which the profits generated by an organisation are not spent or distributed, but remain within the organisation itself (are retained). Accumulation is particularly important in the case of investment companies. If reinvestment occurs, the income generated by a fund in the assessment period (VZ) is not distributed to the fund's shareholders but used to increase the fund's assets (reinvested). The individual units therefore have a higher intrinsic value.