Which valuation method is NOT applicable to UITF?

The valuation method that is NOT applicable to Unit Investment Trust Funds (UITFs) is marked-to-market. UITFs typically invest in a diversified portfolio of securities, and their valuation is primarily based on the current market value of these underlying assets.

The historical cost method is generally used in accounting to determine the value of an investment based on the price at which it was originally purchased. This method is sometimes used in UITFs for reporting purposes but does not reflect the current market conditions.

Amortized cost is relevant for certain types of fixed-income investments where the cost of the bond is adjusted over time, which can apply to some UITFs that invest in bonds or fixed income instruments.

Calculating net asset value (NAV) is the most common and appropriate method for valuing UITFs, as it takes into account the total market value of all the assets held in the trust, minus any liabilities. NAV is used to determine the buying and selling price of units in a UITF.

Thus, while marked-to-market reflects real-time asset price changes and may be useful in other contexts, it is not relevant for the valuation of UITFs, which primarily focus on NAV calculations to establish the value of investments.