Units
Units in a mutual fund represent an investor’s share of ownership in the fund. When you invest, your contribution is converted into units based on the fund’s Net Asset Value (NAV) at the time of purchase. The number of units you hold reflects your proportion of the total pooled investment. As the value of the fund's underlying assets changes, the NAV fluctuates, affecting the overall value of your investment. Units help track investment growth and are used when buying or redeeming mutual fund holdings. They are a fundamental aspect of how mutual fund investments are measured and managed.
Related Terms
Defensive Stock
A defensive stock refers to shares of companies that provide stable and consistent returns and...
Debentures
A debenture is an unsecured debt instrument issued by companies to raise long-term capital without...
Dividend Reinvestment Plan (DRIP)
A Dividend Reinvestment Plan (DRIP) allows investors to reinvest the dividends they earn from stocks...
Basing
Basing occurs when a security’s price moves sideways after an extended decline, forming a “base”...
Long-Term Capital Gain Tax
Long-term capital gain tax is the tax levied on profits from the sale of shares...
At The Close Or Closing Price
The 'at the close' or 'closing price' refers to the last traded price of a...
