How does UITF NAVPU change?

The Net Asset Value per Unit (NAVPU) of a Unit Investment Trust Fund (UITF) is primarily influenced by the market value of the underlying assets held within the fund. As the prices of these assets fluctuate—due to market conditions, economic developments, and other factors—the NAVPU will also change correspondingly. This means that as the value of the investments increases or decreases, the NAVPU reflects that change, providing investors with a real-time valuation of their investment.

Understanding that the NAVPU is a dynamic figure is crucial for investors, as it affects the value of their holdings. The NAVPU is typically calculated daily, which offers an up-to-date view of the fund’s performance. In contrast, assuming that it remains constant or is determined only at specific times would not accurately portray how the fund's performance correlates to the investments it holds. Therefore, fluctuations in asset prices directly impact the NAVPU, making this choice the most appropriate.