Unit Valuation System

Poor Man Investment Club uses the Unit Valuation System (UVS) to determine and track each member’s contributions and current share of worth. The Unit Valuation System has been used by Mutual Funds and investment partnerships for a very long time and only appears complicated at first pass. I will attempt here to provide a [...]

Unit Valuation System

Poor Man Investment Club uses the Unit Valuation System (UVS) to determine and track each member’s contributions and current share of worth. The Unit Valuation System has been used by Mutual Funds and investment partnerships for a very long time and only appears complicated at first pass. I will attempt here to provide a simple explanation of how it works and a few simplistic but explanatory examples.

The basic formula for calculating ‘Unit Value’ is:

UV =  (Market value + Cash + Income – Liabilities – Expenses) / # units

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