How is the investment value in a Unit Investment Trust Fund determined?

The investment value in a Unit Investment Trust Fund (UITF) is determined using the formula that involves the Net Asset Value per Unit (NAVPU) multiplied by the number of units held. NAVPU represents the per-unit value of the fund, which is calculated by dividing the total net assets of the UITF by the total number of units outstanding. This formula is essential because it reflects the current market value of an investor's holdings within the UITF based on its most recent valuation.

This approach provides a clear and concise method for investors to gauge the value of their investment at any given time. The use of NAVPU in this calculation is critical as it accounts for the fund's performance and investment strategy, which can vary over time due to market conditions and the underlying assets held in the fund.

Other approaches might not accurately reflect the investment value in the context of a UITF. For instance, simply multiplying the market price per share by the total shares does not consider the fund's structure or the specific accounting method used for UITFs. The investment principal combined with interest earned may pertain more to bond investments or fixed-income securities, rather than the fluctuating values associated with UITFs. Lastly, calculating total assets minus total liabilities gives insight into the fund