Unit Trusts: Guide to Pricing and Fees
Understand NAV pricing, fund costs, and risks before investing in unit trusts in Singapore.
How Unit Trust Pricing Works
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).
Understanding Fees and Charges
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%. 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.
Common Questions About Unit Trust Pricing and Fees
What is the unit price based on?
The unit price is based on the fund’s net asset value (NAV) divided by the number of units outstanding.
How are management fees structured?
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%.
What are 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.