A magnetic unit is presented. The magnetic unit includes a magnetic core. The magnetic core includes a first limb and a second limb disposed proximate to the first limb, where a gap is formed between the first limb and the second limb. The magnetic unit further includes a first winding wound on the first limb. Moreover, the magnetic unit includes a conductive element disposed facing an outer periphery of the first winding, where the conductive element is configured to control a fringing flux generated at the gap. Further, the magnetic unit includes a heat sink operatively coupled to the conductive element, where the conductive element is further configured to transfer heat from at least one of the conductive element and the first winding to the heat sink. Moreover, a high frequency power conversion system and a method of operation of the magnetic unit is also presented.