Unit Trusts: Pricing and Fees Guide in Singapore
Understand unit price based on NAV, subscription and redemption charges, and management fees before investing in Singapore.
Understanding Unit Trust Pricing
The unit price is based on the fund’s net asset value (NAV) divided by the number of units outstanding. The price of each unit is based on the fund’s Net Asset Value (NAV).
In the “bid and offer pricing” method, the subscription charge is added to the NAV per unit, while the redemption charge is deducted from the NAV per unit.
Fees and Costs
Actively managed funds charge management fees ranging from 1.0% - 2.0% per annum of the fund’s NAV, while passively managed funds generally charge management fees below 1%.
Important Note
Understand NAV pricing, fund costs, and risks before investing in Singapore.
Related reading
FAQ
Q1: What is the unit price of a unit trust based on?
The unit price is based on the fund’s net asset value (NAV) divided by the number of units outstanding. The price of each unit is based on the fund’s Net Asset Value (NAV).
Q2: How are charges applied in bid and offer pricing?
In the “bid and offer pricing” method, the subscription charge is added to the NAV per unit, while the redemption charge is deducted from the NAV per unit.
Q3: What management fees do unit trusts charge?
Actively managed funds charge management fees ranging from 1.0% - 2.0% per annum of the fund’s NAV, while passively managed funds generally charge management fees below 1%.