Unit Trust Management Companies

How Unit Trusts WorkA unit trust is established under a trust deed between a management company and trustees, who ensure the fund adheres to its stated investment policy. When you invest, you buy units in the trust, similar to buying shares in a company. Each unit represents a proportional share of the trust’s underlying assets, and the unit price-known as the net asset value (NAV)-is calculated daily based on the market value of those assets. As the value of the assets fluctuates, so does the unit price, reflecting the performance of the fund’s investments.