What is the difference from a distributing fund?

An accumulating fund reinvests the return automatically, while a distributing fund pays it out in cash. The portfolio and management are identical. The difference lies only in how the return is handled.

Which Amos Value share class is accumulating?

Amos Value A (Acc) is the accumulating share class. Amos Value E (Dist) is the distributing one. Both own the same portfolio and are managed identically.

Do I get compounding with an accumulating fund?

Yes, automatically. Because dividends are reinvested directly in the fund, the entire return keeps working, without you having to buy new units yourself.

Do I see the dividend anywhere?

Not as a payout. Instead of being paid out, the dividend stays in the fund and is reinvested, so it keeps working in the portfolio. The difference from a distributing share class shows over time: there the NAV falls when the dividend is paid out, while the accumulating share class retains the value and therefore grows to a higher NAV. The value stays within your holding throughout.

Glossary

Accumulating fund

A fund that automatically reinvests dividends instead of paying them out. Compounding takes care of itself, with nothing for you to do.

What it is

Returns that keep working

In an accumulating fund, all return is reinvested automatically in the fund. You see no payout. The return is reinvested and keeps working, which over time produces a higher NAV than in a distributing share class. Every krona that would otherwise have been distributed keeps working in the portfolio. Over time this is exactly what drives the compounding effect, without you having to do anything at all.

Amos Value A (Acc): Amos Value A (Acc) is our accumulating share class. The same portfolio, the same management, and the same margin of safety as Amos Value E (Dist), but with automatic reinvestment.
Compounding without effort: Reinvestment happens automatically. You avoid both payouts to handle and purchases to make yourself.
Simple to own long term: Dividends are reinvested automatically, so there are no payouts to handle and no units to buy yourself.

In practice

How the accumulating share class works

In the accumulating share class the return is reinvested automatically in the fund. Because dividends are reinvested, the full compounding effect applies without new units having to be bought manually. The distributing share class instead pays the return out in cash. Within an investment savings account (ISK) the choice is tax-neutral, since an ISK is taxed at a flat rate regardless of share class.