The ability to automatically buy additional fund shares using the dividend income generated by the fund is called a(n)

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The ability to automatically buy additional fund shares using the dividend income generated by the fund is commonly known as an automatic reinvestment plan. This allows for compound growth of the investment over time. Automatic investment plans involve regular investments of a fixed dollar amount, while systematic withdrawal plans involve regularly withdrawing a fixed amount from the investment. Conversion plans involve changing one type of investment into another.

The Ability to Automatically Buy Additional Fund Shares Using the Dividend