Understanding NAVPU: How to Track and Measure Your UITF Growth

If you are exploring Unit Investment Trust Funds (UITFs), understanding NAVPU (Net Asset Value Per Unit) is essential. It is the core metric that dictates both the price and performance of your fund.

​What is NAVPU?

NAVPU represents the monetary value of a single unit in a UITF. You can easily find the total worth of your holdings by multiplying your total units by the current NAVPU.
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• How it compares to stocks: Unlike individual stocks whose prices fluctuate constantly during trading hours, a UITF's NAVPU is computed once per day after the market closes.
• How transactions work: Because UITFs pool money from many investors into a diversified portfolio, shares aren't traded peer-to-peer. Instead, all buy and sell orders are transacted using that day's official end-of-day NAVPU.

How NAVPU is CalculatedThe math behind the metric is straightforward:

NAVPU = Total Net Assets ÷ Total Number of Units Outstanding

• Total Net Assets: The total market value of the fund's assets minus its liabilities, fees, and expenses.
• Total Units Outstanding: The aggregate number of units currently distributed among all investors.

Why NAVPU Drives Your Returns

The NAVPU directly reflects how well your fund's underlying assets are performing.

• Growth: If you buy units at an initial NAVPU of P1.00 and it eventually climbs to P1.22, each unit has gained 22% in value.
• Volatilty: Conversely, if the market drops, the NAVPU decreases. This underscores why you must match your fund choice to your personal risk profile.

How to Use NAVPU Wisely

• Look long-term: Seasoned investors ignore daily noise, tracking NAVPU growth over consistent 1-, 3-, or 5-year periods instead.
• Spot consistency: A fund showing steady NAVPU upward trends across multiple market cycles is a much stronger indicator of health than a single day's spike.

Disclaimer: UITFs are trust products—they are not deposit accounts, carry no PDIC insurance, and are not guaranteed by issuing banks or their affiliates. Principal values and returns will fluctuate, meaning investment losses can happen.