Unit Trusts: Pricing and Fees Guide
The unit price is based on the fund’s net asset value divided by units outstanding, with added subscription or deducted redemption charges.
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).
Subscription and Redemption Charges
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.
Management Fees
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%.
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FAQ
Q1: What determines the unit price of a unit trust?
The price of each unit is based on the fund’s Net Asset Value (NAV). The unit price is based on the fund’s net asset value (NAV) divided by the number of units outstanding.
Q2: How are management fees charged?
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%.