How do Ausschütter funds compare to accumulation funds in terms of growth potential?

probabs

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Ausschütter funds are generally correlated with lower long-term growth capabilities as opposed to accumulation funds since they distribute the respective income. While this gives immediate income to shareholders, it hinders the growth of earnings’ reinvestment to a significant degree, which can multiplicatively elevate the value of the reinvested gains. Hence, if the investor’s objective is long term capital gains then accumulation funds will be more appropriate whereas if the investor’s requirement is regular income Ausschütter funds will prove beneficial.

Source: https://probabs.com/ausschutter/
 
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