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What is the difference between income and accumulation fund units?

Updated this week

Most funds offer either income or accumulation units. The key difference is how they handle income (such as dividends and interest). It’s similar to ETFs, which can be distributing or accumulating.

Income units pay income out to unit holders as cash.

Accumulation units “roll up” the income, and reinvest it back into the fund. This can result in the price of each unit increasing, generating growth on your investment.

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