Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl Net Asset Value

NAV details of Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl:

Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl NAV Today(03.10.2022)
₹106.790.08 %
Exit Load
0%

How was the NAV for Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl 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 Reinvestment Inc Dist cum Cap Wdrl NAV calculation:

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

Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl NAV History

Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
120.94
121.04
February
121.04
121.73
March
121.73
113.08
April
113.08
113.1
May
113.1
112.55
June
112.55
105.4
July
105.4
106.12
August
106.12
106.75
September
106.75
106.79
October
106.79
-
Month
Open(₹)
Close(₹)
January
160.9
160.06
February
160.06
151.55
March
151.55
152.75
April
152.75
153.95
May
153.95
154.85
June
154.85
141.95
July
141.95
142.84
August
142.84
143.87
September
143.87
131.24
October
131.24
131.4
November
131.4
131.97
December
131.97
120.94
Month
Open(₹)
Close(₹)
January
153.82
154.94
February
154.94
147.54
March
147.54
148.17
April
148.17
148.66
May
148.66
151.7
June
151.7
154.47
July
154.47
156.29
August
156.29
156.46
September
156.46
156.64
October
156.64
158.84
November
158.84
160.25
December
160.25
160.9
Month
Open(₹)
Close(₹)
January
149.85
150.55
February
150.55
151.44
March
151.44
142.81
April
142.81
142.95
May
142.95
145.5
June
145.5
146.39
July
146.39
149.04
August
149.04
150.11
September
150.11
150.58
October
150.58
152.43
November
152.43
153.54
December
153.54
153.82
Month
Open(₹)
Close(₹)
January
149.46
149.43
February
149.43
140.62
March
140.62
142.44
April
142.44
142.08
May
142.08
142.37
June
142.37
143.24
July
143.24
144.69
August
144.69
145.16
September
145.16
145.82
October
145.82
146.81
November
146.81
148.36
December
148.36
149.85
Month
Open(₹)
Close(₹)
January
141.07
142.71
February
142.71
140.63
March
140.63
142.34
April
142.34
142.71
May
142.71
144.44
June
144.44
145.84
July
145.84
147.27
August
147.27
148.36
September
148.36
148.49
October
148.49
149.19
November
149.19
149.49
December
149.49
149.46
Month
Open(₹)
Close(₹)
January
125.34
125.99
February
125.99
126.32
March
126.32
128.58
April
128.58
129.91
May
129.91
130.73
June
130.73
132.05
July
132.05
134.97
August
134.97
136.36
September
136.36
137.87
October
137.87
138.93
November
138.93
142.67
December
142.67
141.07
Month
Open(₹)
Close(₹)
January
115.06
116.59
February
116.59
117.19
March
117.19
118.05
April
118.05
118.64
May
118.64
119.54
June
119.54
119.64
July
119.64
120.86
August
120.86
121.85
September
121.85
123.42
October
123.42
124.16
November
124.16
124.63
December
124.63
125.34
Month
Open(₹)
Close(₹)
January
103.45
103.44
February
103.44
103.43
March
103.43
104.74
April
104.74
105.7
May
105.7
107.19
June
107.19
108.12
July
108.12
108.78
August
108.78
109.51
September
109.51
110.64
October
110.64
112.55
November
112.55
114.04
December
114.04
115.06
Month
Open(₹)
Close(₹)
January
102.98
103
February
103
102.97
March
102.97
102.98
April
102.98
103.07
May
103.07
103.13
June
103.13
103.11
July
103.11
102.96
August
102.96
103.21
September
103.21
103.27
October
103.27
103.4
November
103.4
103.34
December
103.34
103.45

What does Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl’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 Reinvestment Inc Dist cum Cap Wdrl as on 03.10.2022 is 7.64.

Check Aditya Birla Sun Life Banking & PSU Debt Fund Direct Plan Reinvestment Inc Dist cum Cap Wdrl 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.