By automatically reinvesting dividends, investors purchase additional fund shares on a regular basis, which over time has the potential to lead to higher future returns. (blackrockblog.com)
Mutual funds allow reinvestment of dividends and interest for additional fund shares. (investopedia.com)
Distribution or payment of a mutual fund's net income (interest and dividend income less fund expenses) to its shareholders, whether paid in cash or reinvested to purchase additional fund shares. (transamerica.com)