Home > Glossary > Unit price

Unit Price

The unit price refers to the price per share or unit of a collective investment scheme, such as a mutual fund or a Unit Investment Trust (UIT). The unit price reflects the value of the underlying assets divided by the number of outstanding shares or units. It changes over time as the value of the underlying assets fluctuates. Investors use the unit price to determine the value of their holdings or to calculate the cost of buying additional units.

Example

An investor in a mutual fund notices that the unit price is $25. If they invest $1,000, they would receive 40 units of the fund.

Key points

• The price per share or unit of a mutual fund, UIT, or other collective investment schemes.

• Based on the value of the underlying assets divided by the number of outstanding units.

• Fluctuates with the performance of the fund’s assets.

Quick Answers to Curious Questions

It is calculated by dividing the total value of the fund’s assets by the number of outstanding units or shares.

The value of the underlying assets, market conditions, and performance of the securities held by the fund all affect the unit price.

It determines the value of an investor’s holdings and is used to calculate the cost of purchasing or selling units in the fund.

scroll top