Accumulation Unit


Accumulation Unit
1) In the case of a variable annuity, a measurement of the value invested in the account during the accumulation period of the contract. The more funds you contribute to your annuity account, the more accumulation units you will build.

2) In the case of a unit trust, a type of investment structure where the trust's income is directly reinvested into the trust, instead of being paid out as cash to the investor.

1) Accumulation units are used to accurately measure the value of contributions by the annuitant. In times when the variable annuity's investments dip, a fixed amount of funds will buy more accumulation units than when the securities are more highly priced, just as investors are able to by more shares of cheaper stock than they can of higher priced stock with the same amount of currency.

2) Accumulation units within a unit trust can be reinvested back into the trust via boosting the unit price, or issuing additional units to investors. Either way, the investor is able to reinvest their share of profits back into the trust.


Investment dictionary. . 2012.

Look at other dictionaries:

  • accumulation unit — Type of unit in a unit trust where the income is reinvested automatically, thereby increasing the price of the unit. * * * accumulation unit accumulation unit ➔ unit * * * accumulation unit UK US noun [C] FINANCE ► a share in an investment trust… …   Financial and business terms

  • accumulation unit — A unit in a unit trust or an investment trust in which dividends are ploughed back into the trust, after deducting income tax, enabling the value of the unit to increase. It is usually linked to a life assurance policy …   Big dictionary of business and management

  • accumulation unit — /əˌkju:mjυ leɪʃ(ə)n ˌju:nɪt/ noun a type of unit in a unit trust, which produces dividends which are used to form more units (as opposed to an income unit, which produces dividends which the investor receives as income) …   Dictionary of banking and finance

  • accumulation unit — (U.K.) Fin a share of a mutual fund that retains dividend income instead of distributing it to individual investors …   The ultimate business dictionary

  • unit — More than one class of securities traded together ( e.g., one common share and three subscription warrants ). Bloomberg Financial Dictionary Securities representing a portion of assets pooled by investors: run by a management company whose share… …   Financial and business terms

  • Accumulation of degrees — Degree De*gree , n. [F. degr[ e], OF. degret, fr. LL. degradare. See {Degrade}.] 1. A step, stair, or staircase. [Obs.] [1913 Webster] By ladders, or else by degree. Rom. of R. [1913 Webster] 2. One of a series of progressive steps upward or… …   The Collaborative International Dictionary of English

  • Annuity Unit — An accumulation unit for which the annuitant has annuitized their contract. This is a sub account of the retiree s total accumulated annuity. These units represent a fixed share of ownership of the insurer s accounts portfolio. When an insured… …   Investment dictionary

  • Carnegie Unit and Student Hour — The Carnegie Unit and the Student Hour (also called a Credit Hour) are strictly time based references for measuring educational attainment used by American universities and colleges; the Carnegie Unit assesses secondary school attainment, and the …   Wikipedia

  • Social unit — is a term used in sociology, anthropology, ethnology, and also in animal behaviour studies, zoology and biology to describe an social entity which is part of, and particpates in, a larger social group, or society. Dimitrie Gusti defined that… …   Wikipedia

  • European Credit Transfer and Accumulation System — (ECTS) is a standard for comparing the study attainment and performance of students of higher education across the European Union and other collaborating European countries. For successfully completed studies, ECTS credits are awarded. One… …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.