The scheme will
keep accumulating this dividends and will reinvest in to index whenever possible.
Not exact matches
In reality, fund manager
keep on watching cash levels of funds and other corporate announcements of underlying stocks and accordingly decide to reinvest
accumulated dividends in such way that it do not cause for high tracking error.
When you receive a
dividend you
keep it in your account as long as you
accumulate enough to buy new shares of any stock you choose.
Keep the
dividends on deposit with your insurance company where they will steadily earn and
accumulate interest.
Keep in mind, however, that it takes time to
accumulate worthwhile cash values plus
dividends.