DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option Net Asset Value

NAV details of DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option:

DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option NAV Today(28.09.2022)
₹52.152.18 %
Exit Load
1%

How was the NAV for DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option 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.

DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option NAV calculation:

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

DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option NAV History

DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option NAV Monthly History

Month
Open(₹)
Close(₹)
January
60.72
61.23
February
61.23
50.77
March
50.77
51.97
April
51.97
51.88
May
51.88
49.42
June
49.42
47
July
47
52.21
August
52.21
53.7
September
53.7
-
Month
Open(₹)
Close(₹)
January
52.44
53.22
February
53.22
55.97
March
55.97
51.13
April
51.13
51.24
May
51.24
54.39
June
54.39
57.05
July
57.05
58.85
August
58.85
60.27
September
60.27
61.78
October
61.78
62.18
November
62.18
60.07
December
60.07
60.72
Month
Open(₹)
Close(₹)
January
47.15
50.13
February
50.13
48.36
March
48.36
31.71
April
31.71
36.87
May
36.87
37.69
June
37.69
39.21
July
39.21
41.48
August
41.48
44.14
September
44.14
45.46
October
45.46
45.09
November
45.09
50.87
December
50.87
52.44
Month
Open(₹)
Close(₹)
January
42.68
41.2
February
41.2
42.11
March
42.11
44.74
April
44.74
44.13
May
44.13
44.84
June
44.84
44.81
July
44.81
41.62
August
41.62
41.85
September
41.85
43.8
October
43.8
46.08
November
46.08
46.38
December
46.38
47.15
Month
Open(₹)
Close(₹)
January
46.98
46.19
February
46.19
45.45
March
45.45
44.18
April
44.18
47.29
May
47.29
44.67
June
44.67
42.66
July
42.66
45.28
August
45.28
45.96
September
45.96
40.66
October
40.66
40.67
November
40.67
41.89
December
41.89
42.68
Month
Open(₹)
Close(₹)
January
33.45
36.56
February
36.56
37.5
March
37.5
39.52
April
39.52
41.44
May
41.44
41.46
June
41.46
40.82
July
40.82
42.5
August
42.5
42.13
September
42.13
42.18
October
42.18
44.9
November
44.9
44.92
December
44.92
46.98
Month
Open(₹)
Close(₹)
January
30.13
27.86
February
27.86
25.52
March
25.52
28.04
April
28.04
28.82
May
28.82
30.01
June
30.01
32.39
July
32.39
34.01
August
34.01
35.05
September
35.05
35.23
October
35.23
36.97
November
36.97
33.9
December
33.9
33.45
Month
Open(₹)
Close(₹)
January
27.74
28.55
February
28.55
28.61
March
28.61
28.85
April
28.85
27.49
May
27.49
28.25
June
28.25
28.76
July
28.76
30.71
August
30.71
28.25
September
28.25
28.19
October
28.19
29
November
29
29.68
December
29.68
30.13
Month
Open(₹)
Close(₹)
January
16.15
15.11
February
15.11
15.83
March
15.83
17.06
April
17.06
17.28
May
17.28
20.03
June
20.03
23.14
July
23.14
21.9
August
21.9
23.44
September
23.44
24
October
24
25.03
November
25.03
26.56
December
26.56
27.74
Month
Open(₹)
Close(₹)
January
15.9
15.2
February
15.2
13.77
March
13.77
13.68
April
13.68
13.91
May
13.91
13.85
June
13.85
13.23
July
13.23
12.24
August
12.24
11.71
September
11.71
12.87
October
12.87
14.4
November
14.4
14.87
December
14.87
16.15

What does DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option’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 DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option as on 28.09.2022 is 16.69.

Check DSP Midcap Fund Direct Plan Payout of Income Distribution cum capital withdrawal option 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.