Aditya Birla Sun Life Liquid Direct Plan Reinvestment Inc Dist cum Cap Wdrl Net Asset Value

NAV details of Aditya Birla Sun Life Liquid Direct Plan Reinvestment Inc Dist cum Cap Wdrl:

Aditya Birla Sun Life Liquid Direct Plan Reinvestment Inc Dist cum Cap Wdrl NAV Today(03.10.2022)
₹190.660.02 %
Exit Load
0.01%

How was the NAV for Aditya Birla Sun Life Liquid 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 Liquid Direct Plan Reinvestment Inc Dist cum Cap Wdrl NAV calculation:

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

Aditya Birla Sun Life Liquid Direct Plan Reinvestment Inc Dist cum Cap Wdrl NAV History

Aditya Birla Sun Life Liquid Direct Plan Reinvestment Inc Dist cum Cap Wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
184.62
185.16
February
185.16
185.7
March
185.7
186.31
April
186.31
186.87
May
186.87
187.45
June
187.45
188.21
July
188.21
188.96
August
188.96
189.84
September
189.84
190.66
October
190.66
-
Month
Open(₹)
Close(₹)
January
178.6
179.03
February
179.03
179.5
March
179.5
180.01
April
180.01
180.47
May
180.47
180.99
June
180.99
181.5
July
181.5
182.02
August
182.02
182.56
September
182.56
183.01
October
183.01
183.49
November
183.49
184.07
December
184.07
184.62
Month
Open(₹)
Close(₹)
January
171.09
171.81
February
171.81
172.54
March
172.54
173.52
April
173.52
174.25
May
174.25
175.05
June
175.05
175.69
July
175.69
176.18
August
176.18
176.72
September
176.72
177.19
October
177.19
177.69
November
177.69
178.15
December
178.15
178.6
Month
Open(₹)
Close(₹)
January
160.23
161.19
February
161.19
162.08
March
162.08
163.15
April
163.15
164.1
May
164.1
165.14
June
165.14
166.08
July
166.08
167.11
August
167.11
167.99
September
167.99
168.79
October
168.79
169.59
November
169.59
170.34
December
170.34
171.09
Month
Open(₹)
Close(₹)
January
149.03
149.85
February
149.85
150.63
March
150.63
151.68
April
151.68
152.55
May
152.55
153.42
June
153.42
154.38
July
154.38
155.34
August
155.34
156.28
September
156.28
157.2
October
157.2
158.19
November
158.19
159.21
December
159.21
160.23
Month
Open(₹)
Close(₹)
January
139.11
140.39
February
140.39
141.1
March
141.1
141.87
April
141.87
142.68
May
142.68
143.46
June
143.46
144.24
July
144.24
145.06
August
145.06
145.84
September
145.84
146.63
October
146.63
147.42
November
147.42
148.19
December
148.19
149.03
Month
Open(₹)
Close(₹)
January
129.04
129.86
February
129.86
130.65
March
130.65
131.63
April
131.63
132.62
May
132.62
133.51
June
133.51
134.36
July
134.36
135.2
August
135.2
136.01
September
136.01
136.76
October
136.76
137.58
November
137.58
138.36
December
138.36
139.11
Month
Open(₹)
Close(₹)
January
118.86
119.71
February
119.71
120.49
March
120.49
121.39
April
121.39
122.28
May
122.28
123.19
June
123.19
124.02
July
124.02
124.84
August
124.84
125.69
September
125.69
126.58
October
126.58
127.4
November
127.4
128.18
December
128.18
129.04
Month
Open(₹)
Close(₹)
January
107.4
108.18
February
108.18
108.9
March
108.9
109.91
April
109.91
110.74
May
110.74
111.58
June
111.58
112.38
July
112.38
113.2
August
113.2
115.49
September
115.49
116.32
October
116.32
117.16
November
117.16
118.01
December
118.01
118.86
Month
Open(₹)
Close(₹)
April
100.33
101.07
May
101.07
101.77
June
101.77
102.5
July
102.5
102.96
August
102.96
103.88
September
103.88
104.86
October
104.86
105.76
November
105.76
106.57
December
106.57
107.4

What does Aditya Birla Sun Life Liquid 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 Liquid Direct Plan Reinvestment Inc Dist cum Cap Wdrl as on 03.10.2022 is 7.

Check Aditya Birla Sun Life Liquid 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.