1. A prudent accumulation plan is key to building a financial nest egg for retirement. Many investors accumulate investment funds with regular contributions and the reinvestment of dividends and capital gains. Generally, the goal is to keep funds invested, reinvest income and capital gains, and have these compound for as long as possible.
2. An accumulation plan can be useful for investors who wish to build their positions in a mutual fund over time. It also provides the benefits of dollar-cost averaging.