In the context of UITFs, what does NAVPU stand for?

NAVPU stands for Net Asset Value per Unit. This term is crucial in the context of Unit Investment Trust Funds (UITFs) as it represents the value of a single unit of the fund. This metric is calculated by taking the total net assets of the UITF—essentially the total assets minus any liabilities—and dividing that by the total number of outstanding units.

NAVPU provides investors with a clear measure of the performance of their investment in the UITF, as it reflects the underlying value of the assets in which the fund invests. Investors use NAVPU to determine the price at which they can buy or sell units in the fund, making it an essential concept for managing and understanding investment in UITFs.

Other options mention terms that do not accurately describe this concept and do not align with standard terminology used in investment finance. For instance, terms like "Net Annual Value per Unit" or "Net Average Value per Unit" are not recognized definitions within UITF or mutual fund contexts. Therefore, understanding NAVPU as Net Asset Value per Unit is key to grasping how UITFs function and how investors evaluate their worth.