In Mutual Funds, why do the total units decrease?
I noticed that when my Mutual Fund is performing negatively, not only my NAV (Net Asset Value) decreases (which is understandable), but also my total number of units (that I bought) goes down. However, when the Mutual Fund is performing positive, my NAV increases, but the total number of units remains the same. Why so?
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Depending on the fund you have subscribed to, there are some maintenance fees deducted by the broker, and for this purpose, some units are sold.
Edit: Clarifying the various comments, I guess everyone is on same page and saying the same thing a bit differently. The funds could be managed by a broker and there is a charge separate to the fund house. This is more often seen in ULIPS, Retirement Funds etc.
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