What does NAVPU stand for in regards to UITF?

NAVPU stands for Net Asset Value Per Unit. It is a crucial term in the context of Unit Investment Trust Funds (UITFs) because it represents the value of one share or unit of the trust at a given time. This figure is essential for investors as it helps them understand the value of their investment relative to the overall performance of the UITF.

The NAVPU is calculated by taking the total net assets of the UITF, which includes all investments and cash, and dividing that by the total number of outstanding units. This calculation allows investors to gauge how much each unit is worth, enabling them to make informed decisions about buying, holding, or selling their investments in the fund.

This metric is typically updated on a regular basis, often daily, providing transparency and allowing investors to track the performance of their investment over time. Understanding NAVPU is fundamental for any investor involved in UITFs, as it directly influences their financial decisions and overall investment strategy.