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Mutual Fund Units

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What are Mutual Fund Units?

Just as shares represent the extent of equity ownership in a company, units represent our extent of ownership in the mutual fund scheme.

For example, if we invest Rs. 5000 in a mutual fund scheme

and the scheme NAV is, say, Rs. 50,

We get Rs. 5000 / Rs. 50 = 100 units

i.e we own 100 units of the scheme.

This is something similar saying, lets say, holding 100 shares of a company.

If NAV of the scheme goes up to Rs. 60, the value of our investment goes up to 100 units x Rs. 60 = Rs. 6000

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