Unit
Updated on March 20, 2023
A Mutual fund ‘unit’ represents an investor’s share of holding in the scheme. While investing in a mutual fund, the investor buys mutual fund units and then sells or redeems these units. The units are sold or redeemed at the prevailing Net Asset Value (NAV), which keeps on changing or fluctuating as per the funds’ holdings. It represents the fund holder’s portion or share in the mutual fund scheme.
What should investors know about mutual fund units?
It is the investor’s smallest portion of ownership in a mutual fund and represents the proportion of the company’s investments. A unit in a mutual fund company is also called a ‘unit share’. It does not mean an entitlement or provide ownership rights on the shares or individual securities of the fund. The price or market value of a unit is called ‘NAV’, which keeps on changing with change in value of its assets. The value of a unit is available daily on the Fund House’s site as well as financial websites.
