Aditya Birla Sun Life Frontline Equity Fund Direct Plan Growth Net Asset Value

NAV details of Aditya Birla Sun Life Frontline Equity Fund Direct Plan Growth:

Aditya Birla Sun Life Frontline Equity Fund Direct Plan Growth NAV Today(06.10.2022)
₹368.351.97 %
Exit Load
1%

How was the NAV for Aditya Birla Sun Life Frontline Equity 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 Frontline Equity Fund Direct Plan Growth NAV calculation:

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

Aditya Birla Sun Life Frontline Equity Fund Direct Plan Growth NAV History

Aditya Birla Sun Life Frontline Equity Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
366.98
372.24
February
372.24
354.16
March
354.16
368.49
April
368.49
356.45
May
356.45
346.57
June
346.57
332.73
July
332.73
365.48
August
365.48
372.64
September
372.64
365.36
October
365.36
-
Month
Open(₹)
Close(₹)
January
285.6
293.06
February
293.06
303.8
March
303.8
305.53
April
305.53
301.1
May
301.1
320.45
June
320.45
326.91
July
326.91
336.6
August
336.6
360.19
September
360.19
367.98
October
367.98
378.57
November
378.57
362.35
December
362.35
366.98
Month
Open(₹)
Close(₹)
January
248.12
246.14
February
246.14
231.91
March
231.91
170.3
April
170.3
200.77
May
200.77
200.71
June
200.71
212.42
July
212.42
224.93
August
224.93
234.54
September
234.54
232.16
October
232.16
235.83
November
235.83
267.41
December
267.41
285.6
Month
Open(₹)
Close(₹)
January
229.19
224.54
February
224.54
224.8
March
224.8
240.21
April
240.21
240.01
May
240.01
243.72
June
243.72
242.49
July
242.49
226.26
August
226.26
226
September
226
231.76
October
231.76
242.98
November
242.98
246.75
December
246.75
248.12
Month
Open(₹)
Close(₹)
January
231.8
237.56
February
237.56
225.46
March
225.46
219.73
April
219.73
232.04
May
232.04
227.17
June
227.17
225.27
July
225.27
236.54
August
236.54
243.79
September
243.79
225.99
October
225.99
218.66
November
218.66
226.99
December
226.99
229.19
Month
Open(₹)
Close(₹)
January
176.66
189.16
February
189.16
194.34
March
194.34
200.54
April
200.54
205.25
May
205.25
208.51
June
208.51
209.83
July
209.83
221.74
August
221.74
221.76
September
221.76
217.7
October
217.7
229.47
November
229.47
222.82
December
222.82
231.8
Month
Open(₹)
Close(₹)
January
163.53
156.03
February
156.03
149.4
March
149.4
159.9
April
159.9
163.54
May
163.54
170
June
170
176.01
July
176.01
184.83
August
184.83
189.16
September
189.16
187.16
October
187.16
189.09
November
189.09
177.2
December
177.2
176.66
Month
Open(₹)
Close(₹)
January
159.92
170.46
February
170.46
171.18
March
171.18
168.45
April
168.45
161.95
May
161.95
166.32
June
166.32
168.4
July
168.4
172.33
August
172.33
158.49
September
158.49
162.03
October
162.03
164.16
November
164.16
163.27
December
163.27
163.53
Month
Open(₹)
Close(₹)
January
109.44
105.09
February
105.09
108.58
March
108.58
117.53
April
117.53
118.06
May
118.06
131.33
June
131.33
140.21
July
140.21
138.93
August
138.93
147.5
September
147.5
147.05
October
147.05
154.46
November
154.46
161.65
December
161.65
159.92
Month
Open(₹)
Close(₹)
January
100.24
101.22
February
101.22
95.86
March
95.86
95.32
April
95.32
99.75
May
99.75
99.73
June
99.73
98.65
July
98.65
94.57
August
94.57
92.24
September
92.24
98.01
October
98.01
107.19
November
107.19
105.91
December
105.91
109.44

What does Aditya Birla Sun Life Frontline Equity 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 Frontline Equity Fund Direct Plan Growth as on 06.10.2022 is 14.27.

Check Aditya Birla Sun Life Frontline Equity 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.