1. What Is Unit Trust Return Calculation?

Unit trust return calculation measures the performance of a unit trust investment over a specific period. It shows the percentage gain or loss from the initial investment based on changes in the Net Asset Value (NAV) per unit.

2. How Does The Calculator Work?

The calculator uses the return formula:

Where:

• \( Current\ NAV \) — Current Net Asset Value per unit
• \( Initial\ NAV \) — Initial Net Asset Value at time of investment

Explanation: This formula calculates the percentage change in value between the current NAV and the initial NAV, representing the investment's performance.

3. Importance Of Return Calculation

Details: Calculating unit trust returns helps investors assess investment performance, compare different funds, and make informed decisions about their investment portfolio.

4. Using The Calculator

Tips: Enter both current and initial NAV values in the same currency per unit. Ensure values are positive numbers representing the NAV at different time points.

5. Frequently Asked Questions (FAQ)

Q1: What is NAV in unit trusts?
A: NAV (Net Asset Value) represents the per-unit market value of a unit trust fund, calculated by dividing the total value of all securities by the number of units outstanding.

Q2: Does this calculation include dividends?
A: This calculation measures capital appreciation only. Total return would need to include reinvested dividends and distributions.

Q3: What time period should I use for comparison?
A: Common periods are 1-year, 3-year, 5-year, or since inception returns, depending on your investment horizon.

Q4: Are there any fees considered in this calculation?
A: This calculation doesn't account for sales charges, management fees, or other costs that affect actual investor returns.

Q5: How often is NAV calculated?
A: Most unit trusts calculate NAV daily at the end of each trading day, but frequency can vary by fund.