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Why are unit prices not important?

Lovelyn avatar
Written by Lovelyn
Updated over 10 months ago

In our view, unit prices are somewhat meaningless in the information they provide.

The key benefit of unit prices is for assessing relative worth, i.e. a rise from $3.00 to $3.24, enables you to calculate that you have made an 8% gain over that period.

The unit price is otherwise just a number - a way to proportionally and equally divide the fund among its investors and allow entry and exit of investors.

Please note: most funds do not commence at a round base value; for example, the Kernel NZ 20 Fund unit price started at $3.537.

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