Unit
Definition
What is Unit?
A proportional ownership interest in a mutual fundA pooled investment vehicle that combines money from many investors into one professionally managed portfolio..
Example in practice
How This Looks in Practice
If a fund's offer priceThe price at which a fund or market participant sells units or securities to an investor. is $2.00 and you invest $20,000, you receive 10,000 units before any applicable charge.
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Related Terms
Mutual Fund
A pooled investment vehicle that combines money from many investors into one professionally managed portfolio.
Fund BasicsNet Asset Value
The value of a fund's assets minus its liabilities, usually expressed in total and per unit.
Fund BasicsAssets Under Management
The total market value of investments managed by a fund or investment manager.
Fund TypesMoney Market Fund
A mutual fund that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.