INVESTMENT FUNDS: The Logic behind Unit PricesINVESTMENT FUNDS: The Logic behind Unit Prices
March 18, 2019
Your share of Investment in an investment vehicle such as a Retirement Savings Account (RSA), is valued using the Unit Price. As it implies, the unit price represents how much each unit of a fund is worth. When your employer makes a contribution to your account or when you personally make a contribution (through Additional Voluntary Contribution), you purchase units in your investment plan.
The Unit Price changes in value as the value of the individual asset class (which make up the various investment plans) either increases or decreases. Understanding how the Unit Price works is an integral part of investment because it helps determine the worth of your RSA.