Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth Net Asset Value

NAV details of Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth:

Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth NAV Today(28.09.2022)
₹307.880.04 %
Exit Load
0%

How was the NAV for Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth arrived at?

The Net Asset Value is the per share market value of a mutual fund scheme. It is obtained by dividing the difference between the firm's total assets and liabilities by the number of outstanding units in the fund.

Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth NAV calculation:

NAV: (Assets - Liabilities)/ Total Number of Outstanding Units

Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth NAV History

Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
301.13
301.37
February
301.37
303.1
March
303.1
304.33
April
304.33
304.37
May
304.37
302.91
June
302.91
304.18
July
304.18
306.28
August
306.28
308.08
September
308.08
-
Month
Open(₹)
Close(₹)
January
289.89
288.38
February
288.38
287.45
March
287.45
289.72
April
289.72
292.01
May
292.01
293.71
June
293.71
294.27
July
294.27
296.11
August
296.11
298.26
September
298.26
298.92
October
298.92
299.27
November
299.27
300.58
December
300.58
301.13
Month
Open(₹)
Close(₹)
January
260.55
262.44
February
262.44
265.83
March
265.83
266.96
April
266.96
267.84
May
267.84
273.33
June
273.33
278.31
July
278.31
281.59
August
281.59
281.9
September
281.9
282.22
October
282.22
286.18
November
286.18
288.73
December
288.73
289.89
Month
Open(₹)
Close(₹)
January
236.08
237.19
February
237.19
238.6
March
238.6
241.91
April
241.91
242.13
May
242.13
246.46
June
246.46
247.96
July
247.96
252.45
August
252.45
254.26
September
254.26
255.06
October
255.06
258.19
November
258.19
260.07
December
260.07
260.55
Month
Open(₹)
Close(₹)
January
220.88
220.83
February
220.83
221.55
March
221.55
224.41
April
224.41
223.85
May
223.85
224.3
June
224.3
225.68
July
225.68
227.96
August
227.96
228.69
September
228.69
229.74
October
229.74
231.3
November
231.3
233.74
December
233.74
236.08
Month
Open(₹)
Close(₹)
January
208.46
210.89
February
210.89
207.82
March
207.82
210.34
April
210.34
210.89
May
210.89
213.45
June
213.45
215.52
July
215.52
217.63
August
217.63
219.24
September
219.24
219.44
October
219.44
220.47
November
220.47
220.92
December
220.92
220.88
Month
Open(₹)
Close(₹)
January
185.22
186.19
February
186.19
186.68
March
186.68
190.01
April
190.01
191.98
May
191.98
193.2
June
193.2
195.14
July
195.14
199.46
August
199.46
201.51
September
201.51
203.74
October
203.74
205.31
November
205.31
210.83
December
210.83
208.46
Month
Open(₹)
Close(₹)
January
170.04
172.3
February
172.3
173.18
March
173.18
174.46
April
174.46
175.32
May
175.32
176.66
June
176.66
176.81
July
176.81
178.6
August
178.6
180.08
September
180.08
182.4
October
182.4
183.48
November
183.48
184.17
December
184.17
185.22
Month
Open(₹)
Close(₹)
January
150.82
151.82
February
151.82
152.84
March
152.84
154.79
April
154.79
156.2
May
156.2
158.41
June
158.41
159.78
July
159.78
160.76
August
160.76
161.84
September
161.84
163.5
October
163.5
166.33
November
166.33
168.52
December
168.52
170.04
Month
Open(₹)
Close(₹)
January
137.46
138.49
February
138.49
139.36
March
139.36
140.26
April
140.26
141.73
May
141.73
142.84
June
142.84
143.69
July
143.69
144
August
144
145.12
September
145.12
146.94
October
146.94
148.5
November
148.5
149.57
December
149.57
150.82

What does Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth’s NAV mean to investors?

It is a common misnomer that a low NAV implies a better investment. In fact, you would have come across several mutual fund schemes that promote their funds with a low NAV as “cheaper” compared to others. The NAV of a mutual fund is unlike the share price of a stock where stocks with lower values and high growth potential are considered lucrative. When we talk of NAV, it is essentially just the current book value of all the assets minus the liabilities of a particular scheme. The following example can help make things clearer:

Let’s say we have two funds namely, Fund A and Fund B.

The NAV of Fund A is Rs 10 and the NAV of Fund B is Rs 100.

Now, say you have Rs 10,000 to invest in the funds. 

ParticularsFund AFund B
NAVRs 10Rs 100
Units bought (with Rs 10K investment)1000 units100 units
NAV (increases by 50%)Rs 15Rs 150
RetursRs 15,000Rs 15,000


As you can observe from the above table, the returns (Rs 15,000) remain the same irrespective of the NAVs of the funds. Hence, the common notion that funds with higher NAVs give higher returns stands null and false as proved by the above example. Your main focus must be the total returns generated by the fund while making an investment decision. The total return (CAGR) for Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth as on 28.09.2022 is 8.64.

Check Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Growth to get a detailed description of the total returns.

An Important Point to Remember

In case, any company in your mutual fund portfolio distributes dividends. It is of the mutual fund’s discretion to distribute at a particular interval. But when they do, the NAV of your fund shall decrease reflecting a decline in the total corpus of the fund. On the other hand, there are funds that do not give dividends to shareholders but reinvest them in order to buy more units. As a result the total number of outstanding units of the fund increase which shall in turn decrease the NAV of the fund.


In the case of mutual funds of the growth plan category, no dividend is paid to investors. The entire dividend amount is reinvested by the fund in buying more assets to increase the long-term gains of the fund. In this case, the NAV does not decrease.

Factors affecting the NAV of a mutual fund

Profits/ Losses from the underlying assets: The NAV of a mutual fund simply reflects the profits and losses of the underlying assets that the mutual fund has invested in. When the assets increase in their value, the NAV increases and vice versa.


Expenses regarding the management of funds: Mutual funds as you would be aware are managed by professional managers who actively invest in various assets to generate good returns. The managers charge a certain fee for doing the same. These fees are reduced from the total NAV of the fund.


The number of investors who buy and sell units: If a large number of investors book their profits by selling units of the fund at higher NAVs, the NAV shall decrease (similar to profit booking seen in stocks). On the other hand, if investors buy mutual fund units at lower NAVs, due to the rise in the number of units, the NAV drops.


Type of mutual fund: Generally, a regular mutual fund has a higher NAV compared to a direct fund. A regular fund includes broker and intermediary fees whereas a direct fund has none.


Dividend Payouts: As we had explained above, when mutual funds pay dividends, it reduces the NAV as it is akin to withdrawing money from your own investment.

FAQs

The Net Asset Value of a fund is arrived at by dividing the difference between the fund’s total assets and liabilities by the total number of outstanding units of the fund. (Assets-Liabilities)/Total Outstanding Units of the fund.

Investors must be concerned largely about the returns of a mutual fund more than the NAV. It is advised not to base any investment decision purely on the basis of the NAVs of a mutual fund as they do not suggest the future prospects of the fund. While funds with higher NAVs do suggest that the fund has been in existence for a long period of time.

As explained in the paragraph above, the NAV of a fund is simply the value of each unit of a mutual fund got by dividing the difference of total assets and liabilities of a fund by the outstanding shares. A fund with a low NAV does not mean that the fund is available at a cheaper value or vice versa. It simply means that you can purchase extra units of a fund with a lower NAV and fewer units of the same in the case of a fund with a higher NAV.

Mutual Fund Companies update the value of their funds’ NAVs on a daily basis. As per SEBI guidelines, companies have to update their NAVs by 9 PM daily.

There are various factors that affect the NAV of a fund:

  1. Profits/ Losses from the underlying assets
  2. Expenses regarding the management of funds
  3. The number of investors who buy and sell units
  4. The type of mutual fund
  5. Dividend Payouts

We have explained each of these points in the paragraph above.