Definition of Accumulation unit:
A unit in an investment trust or unit trust in which dividends are reinvested in the trust, enabling the value of the unit to increase.
An accumulation unit is a measurement of the value invested in a variable annuity account during the accumulation period or a kind of investment where a unit trust’s income is reinvested into the trust.
Type of investment trust or mutual fund (unit trust) in which the dividend income (after paying income tax) is reinvested to increase the amount of investment (unit).
An accumulation unit can refer to one of two things:.
How to use Accumulation unit in a sentence?
- Accumulation units represent the value of contribution up to a point. When an investor wants to make distributions, they convert their accumulation units to income units.
- Income units and accumulation units are two different things.
- An accumulation unit measures the value of a contribution to an investment in a structured vehicle, like an annuity.
Meaning of Accumulation unit & Accumulation unit Definition