News Finance

How do I know the IPO allotment time on the date of the allotment

The IPO allotment date is the day on which the allotment status is made public on the IPO registrar’s website. IPO allotment result times can vary, so it’s advisable to check closer to the allotment date. 


How do I know the IPO allotment time on the date of the allotment?

There are several ways to verify whether you have been allotted shares in an IPO:

  1. Stock Exchange’s Official Website (e.g., NEPSE): Visit the official website of the stock exchange where the IPO is listed. Look for the IPO allotment section to check your status.
  2. Registrar’s Website: The registrar handling the IPO usually provides an online platform to check allotment status. Visit their official website and enter the required details.
  3. Financial News Sites or Company’s Website: Stay updated with financial news sites or check the official website of the company issuing the IPO for any announcements regarding allotment.
  4. Broker’s Platform: Log in to your broker’s platform and check your IPO application status. If you have been allotted shares, the status will indicate ‘allotment received’; otherwise, it will show ‘allotment not received.’

How would I know if I have been allotted the shares?

How would I know if I have been allotted the shares

The list of people who were allotted shares is made public by the issuer’s manager on the day of allotment. Online platforms are so easily accessible, this information can be obtained quickly after it is made public. IPO result check can be performed by yourself on the CDSC official site, mero share, and IPO Issue Manager’s Website.

However, If you receive an allotment, you can expect notifications through various channels:

  • Registrar’s Email Notification: The registrar will inform you about the IPO allotment on the Refund day through an email. This email will provide detailed information about the allotment.
  • Broker’s Communication: Your broker will notify you through SMS and Email if you have received an IPO allotment. Additionally, they will keep you informed about the shared credit in your account on the refund day.
  • Depository Notification: On the refund day, your Depository will inform you about the credit of shares in your account resulting from the IPO allotment.

Stay attentive and monitor these channels to stay informed about the status of your IPO application.

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How do I know if my IPO is successful?

The IPO allotment status can be verified on the registrar's website. It can also be found on the CDSC official website and the Mero sharing site.

How can I check my FPO result in Nepal?

The public can easily obtain the IPO outcomes via Mero Share, the company's official website, and the sales manager's website.

What is the IPO Allotment Status?

The IPO Allotment Status certifies and details the distribution of shares to investors in an IPO, including the quantity of awarded shares based on parameters such as subscription amount and demand. Investors can verify the outcome of their IPO application by checking its status online using their application or folio number.

Is IPO allotment based on luck?

If the number of investors significantly exceeds the available IPO shares, the IPO selection process is likely conducted through a lottery draw. Additionally, if the number of investors and the total available shares (kitta) are divisible by the minimum allocation of 10 kitta per investor, the distribution is carried out accordingly.

How can I increase my chances of getting an IPO allotment?

Go for a single lot, spice things up with multiple demat accounts, nail that cut-off cost, dodge technical rejections, grab some shares of the parent company, and don't forget to dive into the retail category.


To check IPO allotment, visit the registrar’s site on the allotment date. Use stock exchange sites, registrar platforms, and financial news sites. If allotted, the list is published on platforms like CDSC and Mero Share. Notifications come via email from the registrar, SMS, email from your broker, and Depository notifications on the refund day. Stay vigilant, as allotment times vary. You can buy and sell shares at any time during the trading hour; however, it is advisable to sell your IPO shares when you receive a favorable price.

News Finance

How can I buy and sell shares in Nepal?

In the share market, there are two main types of markets: the primary market and the secondary market. The primary market is just for the IPO issuing whereas the secondary market is the real stock market. 

In this blog, we will explore the process of buying and selling shares in Nepal, providing an overview of how the share market operates in Nepal.


Primary Market:

New securities are issued and sold in the primary market for the first time. This process is known as an Initial Public Offering (IPO). Companies use the primary market to buy and sell shares in Nepal to the public. Investors can participate in the IPO and become shareholders of the company. Shares that the corporation directly issues in the primary market are: 

  • IPO(initial public offer)
  • FPO(further public issue)
  • Right and bonus share

Secondary Market:

The secondary market, also known as the stock exchange, is where existing securities are bought and sold among investors without the involvement of the issuing company. It provides liquidity to investors by allowing them to trade stocks freely. 

A secondary market is one where investors trade stocks/shares among themselves. Once you have a DEMAT account, now let’s say you want to buy stocks/shares of XYZ company, but the XYZ company is not open for IPO i.e. company is not offering any shares in the primary market. To buy the shares of XYZ Company, you have to go to a broker’s office to buy shares which is the secondary market. To choose the best shares to buy in Nepal, carefully analyze the fundamentals of a company.

How can I buy and sell shares in Nepal?

How can I buy and sell shares in Nepal
How can I buy and sell shares in Nepal?

To sell your shares you must have a TMS account (Broker account) as you cannot buy and sell shares using the mero share or DEMAT account. Your shares are stored in the DEMAT account, which works similarly to a bank account. Meroshare account is made especially for settling transactions and submitting applications for initial public offerings (IPOs).

  • Bank account
  • DEMAT Account(from the same bank is advised).
  • Broker Account (most important)

Make a DEMAT account if you don’t already have one. Open a broker account with any licensed broker in Nepal by going to the broker’s office to trade shares online. Complete the form to finalize the KYC verification. Only after the broker has confirmed the KYC is online trading enabled. 

Online and offline trading are both possible. Select an online account if you want to trade online; if you have an offline account, you can only trade through a broker. After confirming the KYC form, the broker creates the investor’s account in the Trading Management System (TMS) and emails the investor’s login and password to the address they have provided.

By changing the password, investors can trade by logging in to the broker account. The TMS login will also be provided by the broker’s office.

To visit the TMS login, Go to your Broker’s website and click TMS USER LOGIN. Or you can search by your broker no on Google. For example, Broker No. 38.

There are more than 50 licensed brokers in the market. You can visit the login page by directly searching the broker name or number.


1. Login Page

After you open the TMS login page, enter your username and password then enter capha and press login.


2. TMS Dashboard

This is the TMS dashboard after the login process.

TMS dashboard

3. Buy and sell shares

Click on buy or sell under order management on the left to post an order. A screen for order entry will then show up. Click buy if you want to buy, and click sell if you want to sell.

order management buy sell

4. Buying Shares

Click Buy in the upper right corner if you wish to purchase. When you choose “BUY”, a blue screen dashboard will show up.

Choose ‘Equity’ as the share type. Enter the stock symbol to choose the company. On the same order page, enter the desired price and the number of shares depending on the displayed price range and click “BUY.”

Buying Shares

5. Selling Shares

To sell your shares, do the same and click “Sell” in the upper right corner of the screen. When you select “Sell,” a red dashboard will show up.

Enter the number of shares, the selling price, and the stock symbol in the same manner as before. After that, select “Sell”.

Selling Shares

Note: You can make changes or cancel your order if any trader has not placed the order to buy or sell the stocks at the same price you have placed the order. To make changes go to Order Management, and in the Order Book section, you can modify and delete. Choose “Modify” next to your order to adjust the quantity or price for buying or selling. After making changes, click “Place Order” to continue or “Cancel” to stop the transaction.

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In conclusion, the share market has two main parts: the primary market issues new securities like IPOs, while the secondary market involves buying and selling existing securities. To trade shares in Nepal, get a bank account, a DEMAT account (preferably from the same bank), and a broker account. Online trading involves logging into the broker’s system, selecting buy or sell, entering details, and allowing for order modifications or cancellations

News Finance

How many days will it take to credit allotted shares on the demat account in Nepal?

Nowadays, due to online trading systems, it has become extremely easy to trade through a demat account. We can buy or sell stocks with a single click using our phone, thanks to the online platforms provided. The Depository Participant facilitates the transfer of shares from the seller’s account to the buyer’s account.

How many days will it take to credit allotted shares on the demat account in Nepal?

As of January 24, 2021, CDS & Clearing Limited CDSC has unveiled an official notice, that the domestic stock market should use the T+2 trading settlement.

This means the trading settlement should be completed within 2 business days from the transaction date, with the allotted shares being credited to the respective demat account in Nepal.

How many days does the issue manager take to allot IPO and FPO shares after the closure date?

The Securities Board of Nepal (SEBON) states that the issue manager must publish the IPO result / complete the share allotment within specific timelines based on the number of applicants: 

  • 30 days for less than 2 lakh applicants 
  • 40 days for 2 to 3 lakh applicants
  • 50 days for over 3 lakh applicants from the public issue closure date.

share allotment timelines


In summary, the ease of online trading through demat accounts has revolutionized stock transactions, with a T+2 settlement period in Nepal ensuring swift share transfers within two business days. The Securities Board of Nepal has set specific timelines for issue managers to allot IPO and FPO shares based on applicant numbers, promoting efficiency and transparency in the stock market.

News Finance

Understanding limit Order and How does it work?

Limit Order

What is a Limit order?

A limit order is like telling the stock market, “I want to buy (or sell) this stock, but only if it reaches a specific price or better.” It helps you control the price at which you make a trade.

Imagine yourself at a spirited auction, examining a priceless painting with great anticipation. It’s important to resist getting sucked into the hectic bidding process and overspending. That’s how it works in the financial world: you discreetly inform the auctioneer of the maximum amount you’re willing to spend.

A limit order can be thought of as a clear directive to purchase or sell an asset, such as shares, at a specific price, or even a higher one. They prioritize price control above speed, as opposed to quick market orders, which aim to buy or sell at the current market price.

Types of Limit order

  1. Purchase Limit: Let’s say you have a certain amount in mind to spend on something. You establish a limit, saying, “I’ll buy only if it gets as cheap as $X.” Your order is placed on hold until the price reaches your predetermined level or falls. If so, you’ve got a great deal. If not, your order remains pending until the price is agreed upon.
  2. Sell Limit: Let’s say you have an item to sell, but you will only do it if the price is acceptable. A rule that you establish states, “I’ll sell if it reaches at least $Y.” Until the price reaches your threshold or rises, your order remains in effect. If it does, you earn from the sale. Your order waits patiently if not.
  3. Day Order: There’s a deadline on this deal. “Do this today or forget it,” is what your order says. Excellent for people who wish to complete certain trades in a single trading day.
  4. Good Till Cancelled (GTC): This order, in contrast to the one-day marvel, is in effect until it is completed unless you specify “Stop.” It is ideal for long-term planners who can wait for the right deal.
  5. On Open/Close: These orders are limited to being placed at the start or conclusion of the trading day, much like concert tickets. helpful if you want to be there when the market opens or closes.
  6. Iceberg Order: Think of a large trade being concealed by smaller ones. This order avoids a significant influence on the market by releasing small amounts at a time. Excellent for those looking to be a little sly when making large trades.
  7. Limit of Trailing Stop: This one protects your earnings like a bodyguard. It tracks the market upward but safeguards your gains by being prepared to sell if circumstances worsen. However, it only sells for what you’ve decided upon or more. It is comparable to having a backup plan within a backup plan.

How does limit order work?

You Determine the Price

When using it, you are in charge. The purchase limit is the maximum amount you are willing to pay while making a purchase. When selling, you determine your sell limit or the lowest price you are willing to accept.

Have patience

Even when you’ve made up your mind, things may not happen immediately. After taking a nap, your order waits. It waits patiently until the market price reaches your predetermined limit or reaches a higher level.

Marketplace matchmaking

It’s not only your order. It coexists with other limit orders, each with an associated cost. Your order pairs with the other side (a buyer’s order if you’re selling, and a seller’s order if you’re buying) when the market price matches your limit. It’s similar to the market arranging your trade’s partners.

What are the examples of Limit orders?

Shop Wisely with Sarah

Consider Sarah believes that the price of a tech stock will drop. Rather than purchasing it at $50 straight immediately, she chooses to be cautious. She establishes a condition with a purchase limit order: “I’ll only buy if it drops to $45 or less.” She benefits greatly if it does. If not, she doesn’t lose anything unless the price keeps going higher.

Michael’s Methodical Approach to Profit

Become acquainted with Michael. He has stock in a continuously expanding corporation. If the price continues to rise, he wants to ensure that he makes a profit while also not losing money. Therefore, he states, “I’ll sell automatically if the price hits $120, which is higher than the current $110.” When it hits $120, he secures a profit. If not, he holds onto his shares and looks for further growth if it remains below.

Daniel’s Instinctive and Swift Action

And now for Daniel. He owns stock in a company that is merging, and he believes the stock will rise before perhaps falling. To profit as much as possible, he establishes a rule that states, “Sell if the price hits $30, just above where I think it’ll peak.” He sells and receives the best price if the price does indeed reach $30. If not, he can modify his plan at a later time and keep his shares.

What is the purpose of limit order? 

Purchasing Strategy

Envision yourself deciding on the maximum amount you are willing to spend on a product. You will get a terrific deal if the market lowers that price or even lower.

Selling Strategy

At this point, if you’re selling, you decide on the lowest price you’ll accept. You lock in your profits at that moment when the market reaches its peak.

No Surprises

They act as a kind of security guard for your trade, in contrast to those market orders that might catch you off guard with a less-than-ideal price. It waits for the best possible price to appear.

Peace of Mind

You can unwind a little when you have a limit order. The market must follow your lead for your deal to be executed. It’s how you assert your authority in this situation.

Managing Market Rollercoasters

They can be your saving grace when it comes to equities that tend to swing around or when the market is experiencing extreme volatility. It makes navigating the ups and downs easier and less taxing.

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What is a stop-limit order to sell?

It's a sell order that triggers when the price hits a specific point, but it only sells at or above a set limit.

How does a stop-limit order work?

It combines a stop order and a limit order. It sells when the price hits a certain point but only at your specified limit or better.

How does a limit order work?

It's an instruction to buy or sell at a set price or better. It waits until the market reaches that price, ensuring control over your trade.

What is a limit sell order?

It's when you set a minimum price you're willing to accept for selling a security, ensuring you don't sell for less than your desired amount.

What is the limit on a money order?

The limit on a money order is the maximum amount it can be issued for, usually specified by the issuing institution.

What is a limit buy order?

It's an order to buy a security at a specific price or less. It gives you control over the buying price, ensuring you don't pay more than you want.


Finally, knowing the ins and outs of limit orders will help you become more powerful in the trading industry. It’s similar to having a customized market advisor that makes sure you purchase and sell according to your parameters. 

Knowing limit orders puts you in control of your financial path, regardless of your goals—getting the greatest deal, protecting your earnings, or just wanting exact control. So go ahead, trade with confidence, and establish your boundaries!

News Finance

Market Order: Definition, Types, Examples

Market Order

What is Market order?

A market order is like telling a broker, “Buy or sell this stock right now at the current price.” It’s a quick way to make a trade without specifying a particular price, but the actual execution price might vary a bit.

In the stock market, market profile trading is an advanced tactic that goes beyond the instantaneous nature of market orders. It entails looking at the historical distribution of prices and volumes over time, rather than just concentrating on speedy execution. 

Traders can obtain valuable insights into the market mood by using historical data to determine support and resistance levels. This allows them to make more sophisticated decisions on the timing of trade entry and exit. Essentially, market profile trading is analyzing past trends to predict possible future market movements and help traders make more strategic, well-informed judgments. While a market order is immediate and straightforward, a stop order serves as a conditional tool, converting to a market order when a specific price level is reached for risk management or strategic purposes.

What are the types of market orders?

Simple Market Order

Have you ever felt the impulse to grab something immediately? That’s how an investing basic market order feels, anyway. This is a classic “get it now” strategy in which getting the greatest deal is not as important as getting it quickly. Think of it as an instantaneous, fast action, similar to grabbing your favorite device as soon as it is released off the shelf. Just keep in mind that with this arrangement, the ultimate price may differ from what you see initially by a small amount when you’re buying or selling.

Order for Market-on-Close (MOC)

Let’s now discuss a more specialized move: the order known as the Market-on-Close (MOC). It’s all about timing your move well in this one. It guarantees that, at the end of the day, your buy or sell order is executed at the going rate. It’s similar to basing your investing choices on the day’s outcome rather than worrying about fluctuations in price during the day. Consider it as securing your agreement when the market makes its farewell bow.

What are the examples of market orders?

Taking a Shot at Investing

Consider the process of investing as a busy market. A market order is like saying to the baker, “Give me a loaf,” as opposed to bargaining over rates. It all comes down to acting quickly and not worrying too much about getting the greatest deal.

Brief Guide for Your Broker

A market order is a direct command to your broker in the realm of finance. In other words, you’re advising them to “buy or sell this security right away, at the best available price at this moment.”

When to use market order?

Must Move Quickly

Market orders are the best option if you need to quickly enter or exit a stock. They are comparable to catching a falling knife in the realm of investing, though!

High Market Activity

Market orders perform best when there is a lot of buying and selling activity in a stock. They take advantage of the best deal without making too much noise. It’s as simple and quick as pulling open the store doors to grab the newest phone.

Keeping Things Compact

Market orders are useful when you only want a small portion of the activity. That’s the vibe if you can picture yourself picking up a single loaf of bread in a bustling market.

What are the advantages of market order?

Must Take Quick Action

Market orders should always be used when you need to quickly enter or exit a stock. They resemble catching a falling knife, only with investments!

Strong Market Activity

Market orders excel in a stock that is experiencing a lot of buying and selling activity. Without making too much noise, they seize the best deal that is offered. It’s effortless and quick, much like grabbing the newest phone when the store doors open.

Maintaining It Small

Market orders are ideal for situations where all you want is a small piece of the action. It feels like you’re in a busy market, picking up a lone loaf of bread.

Have faith in the current price

Do you have faith that the market is well-informed? With a market order, you can quickly secure your location and avoid any back and forth. Just keep in mind that this is presuming that costs won’t suddenly skyrocket.

What are the disadvantages of market order?

Uncertainty over Price

Market orders are your willing assistants, but they are not without flaws. A small amount of control over the precise amount you pay or receive is forfeited. You can wind up paying a little bit more or get a little less, similar to when you desire a certain book and discover that it’s priced up because everyone wants it at once.

A roller coaster of volatility

Your order might not arrive where you anticipated in a market that operates similarly to a crazy roller coaster. Imagine trying to seize a hot stock in a hurry only to have it abruptly fall. Hurt! You signed up for this roller coaster ride, that’s what it is.

Effect on the Market

Now consider illiquid equities or those that aren’t traded frequently. It is equivalent to purchasing the whole apple bin at a local market if you include a large market order. The price increases, so you may find yourself having to pay more or selling for less than you anticipated.

Lost Chances

Occasionally, the market moves more quickly than your order can. It’s like reaching out and trying to catch something that is falling, only to find out it’s gone. It hurts to lose up on opportunities, especially if you might have gotten a better bargain.

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What action is important for marketers to take to be effective in a foreign market?

Conduct thorough market research, adapt strategies to local culture, and build strong local partnerships.

What is the difference between market order and limit order?

Market orders execute at the current market price, while limit orders set a specific price for execution.

What is necessary for salespeople to thrive in today’s ultra-competitive market?

Adaptability, continuous learning, strong relationship-building, and leveraging technology are crucial for salespeople.

How long will the world market hold your order?

The duration of holding an order in the world market depends on market conditions and the type of order placed.

What is a market order type?

A market order is a type of order to buy or sell a security immediately at the best available current price.

What is market order in stocks?

In stocks, a market order is an instruction to buy or sell a stock immediately at the best available current market price.

What is the disadvantage of a market order?

The main disadvantage is the lack of control over the execution price, as market orders are executed at the prevailing market price, which can vary.


Market orders, which provide quick execution and ease of use, are the speed demons in the busy world of investments. They’re your go-to method for cutting through crowds, grabbing chances, and organizing your long-term strategies. They do, however, have some hazards, just like any fast ride: consider price volatility, market impact, and uncertainty. 

You can decide how to use them. Weigh their blazing speed against the possibility of unanticipated hiccups. They are your pass to quick action under the appropriate circumstances, but keep in mind that your true assets for success in the market tussle are a level head and well-considered decisions.

News Finance

What is an order? Types of Order and Examples

Types of order
Types of order


What is an order?

Just picture yourself entering the crowded stock market, where an order represents your customized shopping list. By placing an order, you are effectively giving your broker instructions to purchase or sell a certain amount of a specific stock. Imagine creating a wish list, but instead of groceries, you would be listing the firms and the quantity of shares you wish to exchange. 

It is the fundamental system. It’s the crucial system that converts your stock market judgments into actual transactions in the ever-changing world of equities.

Types of order

Orders are like your go-to tools in the volatile realm of the stock market; they help you navigate every step of your investing journey. Knowing them better enables you to navigate the market with assurance.

Market Order

Think about how much you would pay to have the newest technology as soon as possible. A market order is similar to that. “Get me some of [stock symbol] right now, no matter how much it costs,” you say to your broker. Although it’s quite quick, the cost might not be as low as you had planned. Swift, although a little erratic.

Limit Order

Consider yourself a collector seeking a unique antique at a particular cost. The limit order is the type of order “Only grab me stocks when it hits your desired price,” you tell your broker. As you wait for the ideal opportunity, you get to be in charge. 

If, however, the price never reaches your desired level, you may have to wait and lose out.

Stop Order

A stop order is a type of order placed with a broker to buy or sell a security once it reaches a specified price, known as the stop price. It is designed to limit an investor’s loss or protect gains by triggering an automatic trade when the asset’s price hits a predetermined level. Stop orders are commonly used as risk management tools in trading and investing.

For example, you might say, “Protect my stocks by buying/selling if the price hits the trigger price.” It functions as a buffer against unexpected highs and lows. Although you give up some control, your assets are protected against unanticipated losses.

What are the examples of order?

Order is a basic concept that permeates everything, from the dynamic stock market to the motion of the stars in the sky. It is easier to manage the world’s intricacies when we clearly understand the various examples of order.

Trading orders

These are essentially coded messages to brokers, guiding the buying and selling dance of stocks and futures. They can be either a super-fast market order or a specified limit order.

Market Indices

Consider the Dow Jones, Nikkei, and Sensex as potent representations of hierarchy. Giving investors a clear picture of the state of the economy, they meticulously assess enterprises depending on their value.

Portfolio Management

Are you familiar with risk management, asset allocation, and diversification? These are the tactics that tame the turmoil that is investing. By strategically allocating their investments, they assist large corporations and common people in reaching their financial objectives. 

Having a map to help you navigate the financial world is similar to understanding these principles.

What is the purpose of order?

Carrying Out Trades

Whether you are buying or selling stocks, placing orders enables you to convert your investment decisions into actual transactions.

Communicating Preferences

Order types (such as market, limit, and stop orders) let you express your trading goals, be they speed, accuracy, or risk management.

Management of Portfolios

Orders are crucial tools for portfolio management because they let you change strategies, rebalance holdings, and respond to market fluctuations.

Control of Risk

As a safety measure, stop orders let you control and minimize any losses by automatically selling stocks if their values drop below a certain threshold.

Responding to Possibilities

Ordering quickly enables you to respond to news and happenings in the market, which enables you to protect your investments or take advantage of opportunities when circumstances change.

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What's the difference between a market order and a limit order?

Market orders prioritize speed and immediate execution, accepting the current market price. Limit orders prioritize price control, and wait for your desired price before executing (may not fill if the market doesn't reach your price).

What order type should I use when the market is volatile?

For volatile markets, consider stop orders to limit losses or market orders to capitalize on sudden changes. If unsure, consult your broker.

Can I cancel an order after placing it?

Yes, most orders can be canceled before they are filled. Check your broker's platform for specific cancellation details.

Is there a type of order that automatically follows the market price?

Yes, a trailing stop order adjusts your stop price based on the market's movement, locking in profits or minimizing losses.

Where can I learn more about different order types?

Many online resources and broker guides offer detailed information on various order types. Start with your broker's website or financial news platforms.

What is market profile trading?

Market profile trading organizes price and volume data of an area in a graphical format called a “market profile chart,” which displays the market's price distribution over time.


If you’re a beginner to the stock market, you must understand the types of orders. For some, it is essential to buy with only limited orders so they don’t get a bad price, while for some stop orders may give them good deals. It is safe to observe people who are already into it and see what’s best for them. And another piece of advice to you if you’re just trying your luck for the first time, try staying away from market order as it is very unpredictable.

News Finance

What is the ETF Market Price?

ETF Market Price
ETF Market Price


What is the ETF Market Price?

The ETF market price is the cost of buying or selling shares on the exchange during the trading day. When shares of an exchange-traded fund (ETF) are available for purchase or sale during the day on a stock market, this is the constantly fluctuating price. The market price, as opposed to a set price, is determined by a dynamic dance between the amount that buyers and sellers are willing to pay. Like the commotion of a market, it shifts as more people move in or back out.

What is the market closing price of ETF?

The ETF market price shows how many shares are bought or sold during the day, while the net asset value (NAV) is the value of each share’s piece of the fund’s assets at the day’s end. Imagine the bustling marketplace at closing time. Shops wind down, prices are finalized, and a snapshot of the day’s activity is captured. That’s essentially what the ETF closing price signifies: a crucial point in the day’s journey, offering insights into investor sentiment and performance.

Why is the closing price important?

Benchmark for Performance: The ETF’s daily performance is measured against this benchmark. About the previous closing price, did it increase or decrease? This is a brief overview of the mood among investors and the market dynamics that influenced trade during the day.

Basis for NAV Calculation: At the end of the day, the Net Asset Value (NAV) of the ETF is determined using the closing prices of its underlying assets. Interpreting the link between NAV and market value is made easier with an understanding of the closing price.

Market Trend Indicator: As time goes on, closing prices may disclose more general trends in particular industries or investment topics. Monitoring the closing prices of pertinent ETFs might provide insightful information for long-term investing plans.

What is the Role of Market Price?

Imagine a bustling marketplace where vendors are displaying their wares. There is a price tag on every item, but here’s the catch: it isn’t set in stone. It resembles a vibrant dance between buyers and sellers, always shifting based on what buyers desire, how much supply there is, and even what’s in style at the moment. We refer to that as the market price.

In the realm of finance, which includes financial instruments like bonds, stocks, and exchange-traded funds (ETFs), the market price is a critical component. It’s the price that never stops changing, indicating to you how much you can swap for those monetary items at any given time.

Think of it as a bidding battle for something you truly desire. It becomes more expensive if more people desire it. But the price may go down if not many people are interested. The market price is akin to a momentary snapshot of what the entire market is thinking at that precise instant. It resembles the general attitude of the market!

Comparison of ETF Market Price and ETF Net Asset Value

The market price of an ETF is the price at which it trades on the open market, influenced by investor demand and supply. In contrast, the ETF Net Asset Value (NAV) is the calculated value of the underlying assets minus liabilities per share. While market price fluctuates throughout the trading day, NAV is typically calculated at the day’s end. Discrepancies between market price and NAV can indicate premiums or discounts, offering insights into investor sentiment and potential arbitrage opportunities.

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Why Can an ETF's Market Price Differ From the NAV?

An ETF's market price can differ from its NAV because of factors like supply and demand, investor sentiment, trading costs, intraday market movements, and the creation and redemption process by Authorized Participants. These differences occur as prices change throughout the trading day based on investor activity.

What Is the Main Difference Between Market Price and NAV?

The main difference between market price and NAV is that market price is what investors pay for a share on the stock market, while NAV (net asset value) is the total value of a mutual fund's assets minus its liabilities, divided by the number of shares outstanding.

What is the net price of an ETF?

The net price of an ETF is its market price, which is the amount investors pay to buy or sell a share on the stock exchange. For example, if an ETF is trading at RS. 50 per share on the stock market, that Rs. 50 is the net price at which investors can buy or sell a share.


The ETF market price is like a price tag in a busy market, always changing based on what people are willing to pay. The closing price gives us a snapshot of the day’s action and helps measure how well the ETF did. It matters because it’s a performance benchmark, guides NAV calculation, and shows market trends. Sometimes, the market price doesn’t match the NAV due to factors like supply, demand, and investor sentiment. It’s like a financial dance that keeps shifting throughout the day.

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What is ETF Net Asset Value?

ETF Net Asset Value
ETF Net Asset Value


What is ETF Net Asset Value?

ETF Net Asset Value (NAV) is the total value of all the assets held by an exchange-traded fund, minus its liabilities. It’s like the ETF’s overall worth, showing how much each share is theoretically worth at a given moment.

Consider yourself excitedly uncovering the secret gem within a surprise gift as you unwrap it. That’s kind of how understanding ETF Net Asset Value (NAV) works! It’s similar to removing the layers from an ETF to get its actual worth. In contrast to the dynamic market price, which is subject to changes based on purchases and sales, NAV provides you with access to the ETF’s true underlying value. It’s similar to opening a package to discover the priceless surprise inside.

How is the NAV of an ETF Calculated?

The Net Asset Value (NAV) of an ETF is calculated by subtracting its total liabilities from its total assets. This net value is then divided by the number of outstanding ETF shares to determine the NAV per share. The ETF Net Asset Value formula is:

NAV = (Total assets – Total liabilities)/ETF shares outstanding

Step 1: Prepare Essential Tools and Review the Prospectus:

Begin by gathering the necessary tools and referring to the prospectus, a guide outlining the ETF’s assets. This serves as a roadmap to understand the assets, with current prices as crucial tools for determining their values.

Step 2: Calculate the Total Asset Value:

Use the prospectus and relevant tools to calculate the overall value of all ETF assets. This involves assessing stocks, bonds, and cash, and establishing the combined worth of the ETF’s assets.

Step 3: Equitably Distribute Total Asset Value:

Divide the total asset value by the number of outstanding ETF shares. This ensures each investor receives a fair share of the total value, reflecting an equitable distribution of the ETF’s value among all investors.

Differences between ETF Net Asset Value and Market Price

FeatureMarket PriceNet Asset Value (NAV)
What it is?The cost associated with buying or selling an ETF share on the exchange.The per-share value of an ETF is based on the total value of its underlying assets.
CalculationDetermined by the interaction of supply and demand on the exchange throughout the trading day.Computed at the close of each trading day by summing up the value of all underlying assets, subtracting liabilities, and then dividing by the total outstanding shares.
FluctuationDynamic: Constantly fluctuates in response to market forces.Static: Remains unchanged throughout the trading day, with updates occurring only at the close of each trading day.
Relationship to Underlying AssetsMay be higher or lower than the NAV, reflecting market sentiment and investor perception.Represents the actual value of the underlying assets held by the ETF.
UsefulnessOffers insights into current market sentiment and potential trading opportunities.Functions as a reference point for evaluating the intrinsic value of the ETF.
AnalogyResembles the changing price tag on a popular item at an auction.Similar to understanding the original cost and craftsmanship of an antique piece of furniture.

What is the Impact of Exchange-traded Fund on Investors?

Dynamics of Buying and Selling

If you are an ETF investor, the price at which you can buy or sell shares is determined by the market. The market price is what you will pay at that exact moment when you decide to buy. Similarly, the value you will receive to sell depends on the market price. As a result, the market’s price fluctuations directly affect your profit or loss and help you make investment decisions that are in line with the ETF’s current valuation.

Informed Decision-Making

ETFs offer real-time updates on their market prices throughout the trading day, in contrast to traditional investments. Investors can track the value of their portfolios in real-time and gain insights into the current state of their investments thanks to this continuous monitoring. It’s similar to seeing how an investment performs over time when market conditions change.

Reflection of Market Sentiment

At any one time, the market price of exchange-traded funds (ETFs) reflects the mood of the market. Positive sentiment can be indicated by a rise in market price in the event of a surge in demand. On the other hand, a rise in selling interest could cause the market price to drop. Investors should be aware of these changes in attitude as they offer an indicator of market dynamics and possible trends.

Knowledge of the Market Price

Investors can make well-informed selections when they possess this knowledge. While a lower price can offer a buying opportunity, a higher market price might encourage the thought of selling for profit. It’s like navigating investing decisions based on the sentiment and state of the market at large.

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Why should I care about the difference between Market Price and NAV?

Understanding the disparity can help you make informed investment decisions. Knowing if an ETF is trading at a premium or discount to its NAV allows you to identify potential arbitrage opportunities or assess its long-term value.

Which is more important, Market Price or NAV?

For short-term trades, the market price is crucial as it determines your immediate purchase or selling price. However, for long-term investors, NAV offers a better picture of the ETF's intrinsic value based on its underlying assets.

What causes tracking errors that lead to disparities?

Multiple factors can contribute, including changes in underlying asset prices, transaction costs associated with portfolio rebalancing, and inefficiencies in the market for the ETF's holdings.

How can I find an ETF's Net Asset Value?

Most issuers publish daily NAV figures on their websites or financial portals. Additionally, many stock screeners and investment platforms display both market price and NAV for ETFs.

Are there always arbitrage opportunities to exploit?

Not always. While discrepancies exist, capturing them involves transaction costs and potentially high bid-ask spreads, making it less feasible for smaller investors.

Can I invest directly in an ETF's underlying assets instead?

Yes, but replicating the diversification and convenience of an ETF through individual stock picks requires significant research, capital, and ongoing portfolio management.


In conclusion, it is critical for investors navigating the financial markets to comprehend the differences between Net Asset Value (NAV) and ETF Market Price. The present emotion and value of the fund are reflected in the ETF Market Price, which is akin to the dynamic dance between supply and demand. The NAV, which is determined after each trading day, on the other hand, indicates the intrinsic worth of the ETF. 

The NAV stays constant until the end of trade, however, the Market Price changes throughout the day due to market forces. Both indicators are crucial because they provide insightful information to investors who want to make wise choices in the dynamic world of exchange-traded funds (ETF) investments.

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Investment Company: Definition, Types, Benefits

Investment Company
Investment Company


Investment company operates similarly to money teams, taking deposits from investors and using them to make bets on stocks, bonds, and real estate. Their investing options include Unit Investment Trusts (UITs), Mutual funds, Exchange-Traded Funds (ETFs), and Closed-End Funds.

These businesses abide by the regulations, and they are monitored by organizations such as the Securities and Exchange Board of Nepal (SEBON) the government agency that regulates the capital markets in Nepal, and the Securities and Exchange Commission (SEC). It functions similarly to having a referee to ensure fair play. Furthermore, these businesses must be transparent about their objectives, costs, and associated risks because integrity is crucial. Consider it your access to the financial show’s backstage area.

Types of Investment Company

Mutual Funds

Picture a flexible investment opportunity with no time pressure—like an open door that lets you invest whenever you want and add more shares later. Skilled managers actively trade assets to boost your mutual funds‘ returns, offering a variety of options to match your goals, whether it’s growth, income, or specific sectors.

With constant access to your money, you can purchase and sell shares at their Net Asset Value (NAV). Ongoing fees should be monitored, though, as administration costs and other expenses may eat away at your profits.

Closed-end Funds

Imagine, for the time being, a fixed menu—a preset portfolio that remains unmanaged following the initial public offering (IPO). These funds’ prices might fluctuate above or below NAV as they trade on exchanges similar to equities. Purchasing discounted shares may present an opportunity to score a deal, but be ready for some volatility.

Although their costs are typically lower than those of actively managed funds, be aware of their limited liquidity since their trading volume may not equal that of popular equities, which could affect your ability to buy or sell.

Unit Investment Trusts (UITs)

Think of Unit Investment Trusts (UITs) as pre-packaged investments that are held until their expiration date with a preset portfolio that is established at the outset. Because no active management is involved, it is a passive strategy perfect for people who want to buy and hold. 

You are fully aware of the exact moment your investment matures and the funds are allocated. Less flexibility is the trade-off for lower costs as compared to actively managed funds; once you’re in, there’s no turning back. 

Take caution while dealing with secondary market risks, as prices might fluctuate depending on investor demand as well as the assets involved.

Understand how an Investment Company Makes Money.


The important thing is this. The majority of investing firms charge for their services. Consider it a tiny portion of the funds they are handling on your behalf, often between 0.1% and 2%. Be cautious since some can impose additional fees when you purchase or sell shares. These charges pay the overhead, which includes the salaries of the people handling your money’s decisions.

Dividends and Interest

Consider that the corporation has money-paying stocks and bonds. Bond interest and equity dividends are reinvested in the business. The exciting thing is that this cash can increase the investment company’s earnings, which may be reflected in increased share prices or distributed to shareholders.

Performance Charges

Imagine that certain investing firms announce to themselves, “Hey if we do well, we want a little extra.” This is what some private equity firms and closed-end funds do. When they achieve better-than-average returns or surpass certain targets, they charge fees. Ensuring they put in the effort to develop your money is like a bonus for them.

Profits from Trading

This one is a little unusual now. Some financial firms, such as hedge funds, generate revenue through aggressive stock trading. They might profit from activities like playing market fluctuations, short selling, and identifying holes in the system.

Compensation for Expenses

Some businesses use the fund’s funds to cover expenses like marketing and office supplies. Like taking money out of their pocket to pay for specific expenses. This helps keep the overall costs lower even if it can somewhat reduce the amount you earn back.

Benefits of Investing through Investment Company

Pro Financial Assistance

Put an end to your never-ending research! The knowledgeable people at investment companies research markets and select the finest options for you. It’s similar to having a financial growth guide.

Distribute Your Hazard

Put an end to gambling everything on one item. These firms mix and match different stocks, bonds, and other instruments so that you are not impacted too severely if something goes awry. It resembles having a financial safety net.

Simple Investing

Investing does not require a full-time workload. Investment company makes it simple to buy and sell goods. Imagine doing it online: it’s easy, hassle-free, and you have complete control.

Spend Less, Earn More

These businesses obtain bargains and pay less for transactions when they collaborate. When compared to selecting individual stocks on your own, that translates into more money in your pocket.

Unique Possibilities

Curious about niche markets or particular industries? Capital firms have money set aside just for that. They provide you with access to locations you might not otherwise discover, such as backstage passes to exclusive events.

The Money Snowball Magic

Attend the compound interest party, please! Investment businesses can automatically reinvest your profits, increasing your returns over time by purchasing more goods. It’s similar to witnessing your money grow into something more substantial.

Considerations for Choosing an Investment Company

Establish Your Objectives

First things first, decide what you hope to gain from your investing experience. Are you looking for steady growth or a quick buck? Having a clear objective aids in identifying the businesses that best fit your aspirations.

Evaluate Your Comfort Level with Risk

Do you want a more seamless financial journey, or are you able to tolerate a rougher one? Your response aids in the selection of businesses that both suit your comfort level and have appropriate business plans.

Be Aware of Fees

Allow no expenses to spoil the fun! Examine the expenses, including management fees, expense ratios, and any additional costs. Reduced costs usually translate into more money remaining in your pocket.

Examine the track record

Examine the track record of the company, much like you would with a new restaurant. A strong track record of accomplishments demonstrates their expertise.

A Glance Into the Portfolio

Examine the company’s portfolio, much like you would an automobile’s engine. Verify that it aligns with your risk tolerance and goals. Similar to having several ice cream flavors, diversification lowers risk and maintains interest.

Determine Your Investment Approach

Which are you—the laid-back or the ambitious one? Select a business that fits your aesthetic. While some play it cool by tracking particular indices, others actively attempt to outperform the market.

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Why should I invest through an investment company instead of on my own?

Investment companies offer numerous advantages: professional management, diversification to spread risk, cost-efficiency due to economies of scale, and convenience with minimal research and transaction burdens. While individual stock picking can offer higher potential returns, it also involves significantly more time, effort, and risk.

What are the main types of investment companies?

The most common types include mutual funds, offering flexibility and diverse portfolios; closed-end funds, trading on exchanges with fixed holdings; ETFs, providing real-time trading and transparency; UITs, pre-packaged baskets with defined lifespans; and BDCs, focusing on private companies with potentially high returns but higher risks.

How much do investment companies charge in fees?

Fees vary depending on the type of company and specific fund offerings. Expense ratios, charged as a percentage of assets, are a key indicator. Look for lower expense ratios for cost-effectiveness. Some funds may also charge performance fees based on exceeding certain benchmarks.

Is an investment company safer than individual stocks?

Diversification offered by most investment companies generally reduces risk compared to individual stock picks. However, no investment guarantees positive returns, and market fluctuations can still lead to losses. Understanding your risk tolerance is crucial before investing.

How do I choose the right investment company and fund?

Carefully consider your investment goals, risk tolerance, and timeframe. Analyze fees, track records, investment mandates, and underlying assets of specific funds. Consulting a financial advisor can be helpful for personalized guidance, especially for beginners.

Can I lose money with an investment company?

Yes, the value of your investment can fluctuate based on market performance. Selling shares before maturity or experiencing a downturn can lead to losses. Diversification and long-term investment horizons can help mitigate these risks.

Where can I learn more about investment companies and specific funds?

Numerous online resources like the Securities and Exchange Commission (SEC), the Investment Company Institute (ICI), and platforms like Investopedia provide valuable information. Many investment companies also offer detailed information on their websites.


That’s it, astute investors! Look for a corporation with a strong track record, examine its portfolio as you would an automobile engine, and select an investment strategy that suits your personality, whether it be ambitious or relaxed. Here’s to a profitable financial journey: keep things straightforward, and remain informed! Happy making purchases!

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Unit Investment Trusts (UIT): Everything You Need to Know

Unit Investment Trusts
Unit Investment Trusts


What are Unit Investment Trusts?

A Unit Investment Trust (UIT) is a type of investment fund that offers a fixed portfolio of securities, such as stocks or bonds. It operates as a trust, and investors purchase units or shares of the trust, which represent proportional ownership in the underlying assets.

Envision a financial ally that deviates slightly from the standard offerings, such as mutual funds. Introducing the Unit Investment Trust (UIT), your special pass to the American financial scene. A Unit Investment Trust essentially provides you with a unique investing experience, akin to a carefully chosen assortment of fixed-income securities such as equities, bonds, or other assets. 

To take full advantage of this chance, one must understand how Unit Investment Trusts differentiate themselves from the competition. Let’s examine the main distinctions that may influence your investing path.

What are the key features of Unit Investment Trust?

Fixed Portfolio

You can stop speculating now. A predetermined basket of securities (bonds, equities, etc.) that essentially never changes is included with UITs. This implies that you can make plans based on your precise knowledge of where your money is going.

Specified End Date

Are you sick of being unsure about when to press the stop button? Unit Investment Trusts provide you with security because they have a set expiration date. There’s no guesswork involved when you have a defined end goal for your investment, be it weeks, months, or years.

Passive Management

Envision little expenses! Unit Investment Trusts function passively, allowing your selected assets to carry out their tasks without continuous interference. When compared to those annoying actively managed funds, this leads to noticeably lower fees.

Trading on the Secondary Market

UIT units are not limited to a closed system. They trade similarly to individual equities on the secondary market. Expect price changes based on investor emotion and market demand, which will differ from the usual mutual fund subscription procedure.

You can choose to concentrate on growth or income! Certain Unit Investment Trusts prioritize consistent revenue streams via dividends or interest disbursements, whereas others strive for gradual expansion. Aligning your investing strategy with your preferences requires that you understand the trust’s aim.

What are the different types of Unit Investment Trusts?

Focus on Assets

Stock UITs are similar to owning a portion of the stock market investment. These Unit Investment Trusts allow you to invest in topics that pique your interest by focusing on particular regions or themes.

Bond UITs: Just picture yourself stepping foot in the fixed-income space. These Unit Investment Trusts, which provide consistent returns, concentrate on government or corporate bonds. Like having a trustworthy financial friend.

Consider mixed mutual funds (UITs) as a mixtape of bonds and equities. They strive for equilibrium, risk management, and snatching up growth and income simultaneously. Having the best of both worlds is how it is.

Goal of Investment

Income UITs: These are the best options if you’re all about that consistent flow of income. They put your regular dividend or interest payments first, making them ideal for people who value a consistent source of income.

Growth UITs: Visualize the growth of your investment over time. That’s the main purpose of Growth UITs. As the clock runs out, they concentrate on raising the value of your portfolio.

UITs that specialize in strategies are comparable to the chess players in the investing world. To make your money work harder, they employ specialized techniques like mimicking market indices or focusing on cheap assets.

A risk appetite

High-Yield Unit Investment Trusts: Seeking greater value for your money? These UITs carry a little bit greater risk, despite their potential for bigger returns. They tango with less well-known businesses or potentially riskier securities.

UITs that are conservative: These UITs have you covered if steadiness is more your style. They mainly feature government bonds or well-established corporations and place a high priority on revenue and steady sailing. It resembles a financial comfort zone.

What are the advantages of Investing in a Unit Investment Trust?

Openness and Unpredictability

Ever find the world of actively managed funds confusing? Your source of clarity is a Unit Investment Trust. From the beginning, they reveal their fixed portfolio. It will be clear to you exactly what, where, and how much you’re getting. It offers complete peace of mind and is similar to keeping your money open.

Clearly defined exit plan

Put an end to battling the “when to sell” conundrum. An expiration date is a built-in plan that UITs have. You will thus receive a precise timetable for your investing journey. There’s no guesswork involved; just a clear way to modify your portfolio.

Cost-Aware Decision

Bid farewell to those expensive fees! Unlike very maintenance-intensive actively managed funds, Unit Investment Trusts operate passively, which results in significantly lower operating costs. More attention is paid to how your money grows and serves you.

Customized Choices for Various Objectives

There is a UIT that fits your attitude, whether your goal is financial appreciation or a consistent stream of income. Select among trusts that are income-focused, growth-driven, or strategically managed, and they will all perfectly complement your investing objectives.

Risk Reduction through Diversification

Consider your investing holdings to be a sophisticated drink. The majority of UITs have built-in diversification because they own a wide variety of securities. This implies that your risk is distributed and that you won’t be overly dependent on the performance of a particular item. It functions similarly to a safety net for a more secure investing path.

Benefits to taxes

A delicious bonus is that certain UIT models have enticing tax advantages. Imagine saving up capital gains for the very end. In addition to making things easier, this can maximize your long-term tax savings. It resembles a little additional icing on top of your financial cake.

What are the disadvantages of Investing in a Unit Investment Trust?

Limited Adaptability

Entering the world of UIT is similar to entering a dance with set steps. There won’t be any last-minute changes to the portfolios because they are predetermined. You cannot make changes in response to shifting objectives or changes in the market. It’s similar to committing to an exact dance move where there is no opportunity for flexibility.

Risks associated with secondary markets

Imagine if trading baseball cards is akin to purchasing and selling UIT units on the secondary market. It’s not as simple as opening a direct mutual fund subscription. The highs and lows are determined by other people’s emotions and desires. This may cause some ups and downs, which could affect your total returns.

Restricted Lifespan

That expiration date we discussed before? It resembles a board game timer in certain ways. Whether you’re winning or losing, you have to act when it goes off. It is not possible to stay in the same setting and make more investments. It’s an exhortation to aggressively look for fresh chances.

Possible Limitations of Passive Management

Imagine that your baton is gliding along while you participate in a relay race. Passive management functions in this way. Costs are kept low, yet it might not outpace the market during certain bull markets. You might be disappointed by some of the possible standout performances.

Possibility of Increased Transaction Costs

Investors may find UITs somewhat of the upscale coffee shop of investments compared to the mutual fund experience. Trading commissions are frequently more, particularly if you trade frequently. These expenses eat away at your profits much like the gratuity on your beloved cappuccino.

Reduced Flow in Certain UITs

Similar to various ponds, some UITs are lively while others are a little more serene. Less evaporative UITs resemble such serene ponds. When the time comes to sell or buy, things could not go as smoothly as you’d want, which could cause delays or less-than-ideal prices.

How can you choose the Right Unit Investment Trust?

Establish Your Objectives

Make sure you know what you want first. Do you seek long-term growth, consistent income, or a combination of the two? Choosing the kind of adventure you’re up for is similar to knowing what your goal is.

Recognize Your Risk Aptitude

Admit the risk openly. Which do you prefer: a bumpier ride or more excitement? While cautious UITs maintain stability, high-yield UITs might take you on a more adventurous path. Select what makes you feel good.

Examine the ingredients

Look past the moniker of the Unit Investment Trust. What’s contained? Verify that the investments fit your risk tolerance and goal. It’s similar to making sure your cravings align with the pizza toppings.

Select Your Area of Interest

UITs have goals of their own. While some people enjoy making money, others seek expansion. Decide which one best suits your strategy. Selecting music for your mood is similar to that.

Keep an eye on the expiry date

Unit Investment Trusts have a duration of use. See if it corresponds with your chronology. It would not be ideal for your investment to abruptly end before you’re ready.

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What happens to my money when a UIT matures?

At maturity, the Unit Investment Trust liquidates its assets and distributes the proceeds (principal and any profit) proportionally to unitholders. You can reinvest the proceeds directly or choose another investment option.

Are UITs safer than mutual funds?

UITs may offer lower risk due to their fixed, passive management. However, both involve inherent market risks, and neither guarantees returns. Diversification and careful selection are crucial for both options.

How do I buy and sell UITs?

Most UITs trade on stock exchanges like individual stocks. You can place orders through your online brokerage account, like buying or selling shares.

Are there fees associated with UITs?

Like other investment vehicles, UITs incur fees, primarily expense ratios covering operational costs. Compare the expense ratios of different UITs to choose the most cost-effective option.

Can I lose money with a Unit Investment Trust?

Yes, the value of your units can fluctuate based on the performance of the underlying assets. Market downturns can lead to losses upon sale before maturity or lower proceeds at maturity compared to your initial investment.

How are UITs different from index funds?

Both offer diversification and potentially lower fees than actively managed funds. However, UITs have fixed compositions, while index funds actively track an underlying index and adjust holdings accordingly. Consider your preference for a predetermined or dynamic investment structure.

Are UITs a good fit for my portfolio?

UITs can suit investors seeking diversification, transparency, and a defined holding period. However, their lack of flexibility and limited growth potential may only be ideal for some strategies. Evaluate your financial goals and risk tolerance before making a decision.


There you have it: a basic explanation of Unit Investment Trusts (UITs). UITs provide a distinctive journey through the investing environment, regardless of your investment goals—long-term gain, consistent income, or a combination of the two. Don’t forget to identify your objectives, assess your risk tolerance, and review the components of your portfolio. 

Select a Unit Investment Trust that fits your budget, pay attention to those fees, and remember the expiration date.