<prompt> Human: There is an option on Fidelitys website that lets me automatically reinvest in security, my question is: are my 700 being invested again tomorrow and the profit put aside, or is 708 the amount being invested? compounding interest, pretty much It states on the prospectus page of the fund that Dividends and Capital gains are paid out twice a year, does that mean that if I want to sell the fund tomorrow, I wont get those 8?  <response>: If the value has gone up 8, theres nothing to reinvest, it just means the thing you bought for 700 is now worth 708. If you were to sell it now, you would receive 708 minus commissions. Until you sell your shares, all of your money is invested.When there are dividends and capital gains paid out, they will be reinvested if thats what youve picked. Youll notice a line on your statement saying youve purchased some additional number of shares. 