What constitutes the market value for UITF investments?

The market value for UITF investments is defined as the market value of each investment less any fees, taxes, and qualified expenses. This approach reflects the net investment value that an investor would actually attain after accounting for all associated costs.

In UITFs, investments are typically priced based on their market value, representing what an investor would pay or receive if they were to buy or sell the investment at that time. However, to understand the actual worth -- the return or the amount an investor can expect to realize -- one must also consider the costs incurred in managing the trust, including management fees and any applicable taxes. By subtracting these costs from the gross market value, you arrive at a more accurate representation of the investment's true value to the investor, which is why this choice is deemed correct.

This understanding emphasizes the importance of net value rather than just a superficial view of market prices or costs alone, ensuring that investors have a clearer picture of what they might realistically gain from their UITF investments.