A dividend reinvestment plan enables investors to use the money they receive as dividends toward the purchase of further shares of the company.
This plan is offered by a number of different mutual funds. When investors invest money of these types of mutual funds, they are entitled to dividend payments, which are then automatically reinvested at the fund’s current net asset value (NAV).
This enables the investor to regularly receive compounded returns, which results in bigger returns over the course of the investment.
Ajay Bohra is an entrepreneur and a financial expert who guides people in their personal finance, investments and real estate. Ajay is passionate about showing people how to make money work for them.
He guides them in the right direction to invest in Stocks, Mutual Funds, Real Estate and other avenues.
Post Disclaimer
Information provided on this website is for Educational & Informational purposes only and is not considered to be advice or recommendation of any kind whatsoever. Anyone who wishes to apply the concept & ideas contained in this shall take full responsibility. Readers should always do their own diligence on any information perceived from this site to form their own opinion and best judgments. Any action you take upon the information you find on this website (letsthinkwise.com), is strictly at your own risk.