Reinvestment Meaning Factors How To Calculate Reinvestment Rate
Reinvestment Meaning Investors mainly use reinvestment to increase the portfolio’s value by concentrating all the funds into one particular investment; when the price of security surges, the portfolio’s value shoots up accordingly.Reinvestment can also be used in the context where a business is reinvesting the profits to expand the company further or investing in any technological advancements from a long-term perspective.Reinvestment can be done with any type of assets like stocks, mutual fundsMutual FundsA mutual fund is a professionally managed investment product in which a pool of money from a group of investors is invested across assets such as equities, bonds, etcread more, bondsBondsBonds refer to the debt instruments issued by governments or corporations to acquire investors’ funds for a certain period....