Definition of "Accumulation"

With respect to mutual funds, accumulation is when a fixed dollar amount is invested regularly and any capital gains and dividends are reinvested back into the fund. In regard to other types of investments, accumulation occurs when an organization (or individual) purchases a large number of shares in a controlled method. This is done in order to avoid driving up the price of the investment. It may take weeks or months to complete an organization's accumulation program.