Reinvesting funds is recommended when the assets you are investing in through investment funds begin to lose value. At this point, you can withdraw cash from the shares of certain types of funds, such as equity funds, and then transfer the money back into another fund or sub-fund without any additional fees.
It is important to note that diversification and reinvesting profits are among the fundamental principles of investing. Diversification involves selecting assets for an investment portfolio in such a way that potential losses are offset by gains from other types of investments.
On the other hand, reinvesting entails keeping money in circulation and not holding onto it for too long, as this does not bring you closer to achieving your desired profits.
