Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Why there is often little or no price appreciation on unit trust prices compared to its initial offer price even after a substantial period?

April 26, 2017appreciation initial little Offer price prices substantial Trust

0

Posted

Why there is often little or no price appreciation on unit trust prices compared to its initial offer price even after a substantial period?

1 Answer

0

Posted

Unit trust management companies tend to make cash distributions or issue unit split which cause the per unit price to readjust downward. This is usually done to keep the price of each unit from looking too expensive and thus putting off new investors.