Aditya Birla Sun Life Floating Rate Fund Direct Plan Growth Net Asset Value

NAV details of Aditya Birla Sun Life Floating Rate Fund Direct Plan Growth:

Aditya Birla Sun Life Floating Rate Fund Direct Plan Growth NAV Today(28.09.2022)
₹289.01
Exit Load
0%

How was the NAV for Aditya Birla Sun Life Floating Rate 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 Floating Rate Fund Direct Plan Growth NAV calculation:

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

Aditya Birla Sun Life Floating Rate Fund Direct Plan Growth NAV History

Aditya Birla Sun Life Floating Rate Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
279.99
280.86
February
280.86
281.73
March
281.73
283.55
April
283.55
284.37
May
284.37
284.2
June
284.2
285.15
July
285.15
286.87
August
286.87
288.41
September
288.41
-
Month
Open(₹)
Close(₹)
January
269.81
268.97
February
268.97
268.92
March
268.92
270.68
April
270.68
272.52
May
272.52
273.72
June
273.72
274.41
July
274.41
276.1
August
276.1
277.73
September
277.73
278.1
October
278.1
278.52
November
278.52
279.44
December
279.44
279.99
Month
Open(₹)
Close(₹)
January
247.92
249.61
February
249.61
251.09
March
251.09
252.3
April
252.3
253.54
May
253.54
257.42
June
257.42
260.63
July
260.63
262.69
August
262.69
263.92
September
263.92
264.85
October
264.85
266.83
November
266.83
268.76
December
268.76
269.81
Month
Open(₹)
Close(₹)
January
227.76
229.37
February
229.37
230.68
March
230.68
232.9
April
232.9
234.03
May
234.03
236.31
June
236.31
237.46
July
237.46
240.11
August
240.11
241.91
September
241.91
243.19
October
243.19
245.52
November
245.52
246.92
December
246.92
247.92
Month
Open(₹)
Close(₹)
January
211.43
212.22
February
212.22
213.28
March
213.28
215.17
April
215.17
215.75
May
215.75
216.68
June
216.68
218.26
July
218.26
220.05
August
220.05
221.27
September
221.27
222.29
October
222.29
223.79
November
223.79
225.86
December
225.86
227.76
Month
Open(₹)
Close(₹)
January
197.22
199.01
February
199.01
199.49
March
199.49
200.65
April
200.65
201.7
May
201.7
203.22
June
203.22
204.58
July
204.58
206.36
August
206.36
207.78
September
207.78
208.39
October
208.39
209.73
November
209.73
210.65
December
210.65
211.43
Month
Open(₹)
Close(₹)
January
179.67
180.43
February
180.43
181.34
March
181.34
183.29
April
183.29
185.12
May
185.12
186.5
June
186.5
187.77
July
187.77
190.07
August
190.07
191.76
September
191.76
193.18
October
193.18
194.61
November
194.61
197.22
December
197.22
197.22
Month
Open(₹)
Close(₹)
January
164.55
165.77
February
165.77
166.74
March
166.74
168.32
April
168.32
169.4
May
169.4
170.79
June
170.79
172.02
July
172.02
173.34
August
173.34
174.59
September
174.59
176.12
October
176.12
177.18
November
177.18
178.46
December
178.46
179.67
Month
Open(₹)
Close(₹)
January
149.87
150.92
February
150.92
151.95
March
151.95
153.54
April
153.54
154.65
May
154.65
155.96
June
155.96
157.08
July
157.08
158.27
August
158.27
159.39
September
159.39
160.64
October
160.64
162.04
November
162.04
163.49
December
163.49
164.55
Month
Open(₹)
Close(₹)
January
136.53
137.53
February
137.53
138.36
March
138.36
139.33
April
139.33
140.81
May
140.81
141.94
June
141.94
142.81
July
142.81
143.01
August
143.01
144.19
September
144.19
146.08
October
146.08
147.55
November
147.55
148.56
December
148.56
149.87

What does Aditya Birla Sun Life Floating Rate 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 Floating Rate Fund Direct Plan Growth as on 28.09.2022 is 8.01.

Check Aditya Birla Sun Life Floating Rate 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.