DSP Strategic Bond Fund Direct Plan Growth Net Asset Value

NAV details of DSP Strategic Bond Fund Direct Plan Growth:

DSP Strategic Bond Fund Direct Plan Growth NAV Today(07.10.2022)
₹2834.160.04 %
Exit Load
0%

How was the NAV for DSP Strategic Bond 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.

DSP Strategic Bond Fund Direct Plan Growth NAV calculation:

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

DSP Strategic Bond Fund Direct Plan Growth NAV History

DSP Strategic Bond Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
2809.24
2798.99
February
2798.99
2814.17
March
2814.17
2822.56
April
2822.56
2810.25
May
2810.25
2802.89
June
2802.89
2810.06
July
2810.06
2824.74
August
2824.74
2837.64
September
2837.64
2833.06
October
2833.06
-
Month
Open(₹)
Close(₹)
January
2728.07
2692.11
February
2692.11
2663.92
March
2663.92
2695.88
April
2695.88
2723.46
May
2723.46
2732.08
June
2732.08
2733.01
July
2733.01
2744.35
August
2744.35
2775.97
September
2775.97
2791.73
October
2791.73
2791.81
November
2791.81
2808.98
December
2808.98
2809.24
Month
Open(₹)
Close(₹)
January
2420.56
2419.01
February
2419.01
2491.7
March
2491.7
2510.75
April
2510.75
2567.22
May
2567.22
2609.99
June
2609.99
2642.92
July
2642.92
2664.41
August
2664.41
2651.55
September
2651.55
2653.53
October
2653.53
2697.9
November
2697.9
2710.16
December
2710.16
2728.07
Month
Open(₹)
Close(₹)
January
2168.56
2167.09
February
2167.09
2184.97
March
2184.97
2235.01
April
2235.01
2220.87
May
2220.87
2251.69
June
2251.69
2244.45
July
2244.45
2307.04
August
2307.04
2305.65
September
2305.65
2375.91
October
2375.91
2389.08
November
2389.08
2400.83
December
2400.83
2420.56
Month
Open(₹)
Close(₹)
January
2033.77
2020.71
February
2020.71
2021.09
March
2021.09
2057.33
April
2057.33
2038.51
May
2038.51
2037.77
June
2037.77
2041.32
July
2041.32
2061.77
August
2061.77
2064.59
September
2064.59
2073.86
October
2073.86
2101.54
November
2101.54
2133.6
December
2133.6
2168.56
Month
Open(₹)
Close(₹)
January
1988.75
2008.2
February
2008.2
1967.27
March
1967.27
1990.17
April
1990.17
1989.28
May
1989.28
2017.48
June
2017.48
2040.54
July
2040.54
2056.87
August
2056.87
2068.28
September
2068.28
2058.61
October
2058.61
2056.51
November
2056.51
2050.45
December
2050.45
2033.77
Month
Open(₹)
Close(₹)
January
1756.11
1764.73
February
1764.73
1764.29
March
1764.29
1796.26
April
1796.26
1814.8
May
1814.8
1820.73
June
1820.73
1842.57
July
1842.57
1899.83
August
1899.83
1919.8
September
1919.8
1944.12
October
1944.12
1955.59
November
1955.59
2039.73
December
2039.73
1988.75
Month
Open(₹)
Close(₹)
January
1634.2
1672.51
February
1672.51
1678.92
March
1678.92
1684.43
April
1684.43
1682.81
May
1682.81
1691.39
June
1691.39
1680.91
July
1680.91
1697.63
August
1697.63
1714.67
September
1714.67
1745.71
October
1745.71
1749.53
November
1749.53
1748.4
December
1748.4
1756.11
Month
Open(₹)
Close(₹)
January
1421.85
1432.15
February
1432.15
1439.5
March
1439.5
1456.5
April
1456.5
1471.21
May
1471.21
1498.21
June
1498.21
1508.73
July
1508.73
1516.12
August
1516.12
1524.57
September
1524.57
1541.5
October
1541.5
1577.91
November
1577.91
1610.53
December
1610.53
1634.2
Month
Open(₹)
Close(₹)
January
1338.3
1350.44
February
1350.44
1357.96
March
1357.96
1366.41
April
1366.41
1388.47
May
1388.47
1415.96
June
1415.96
1409.61
July
1409.61
1385.35
August
1385.35
1382.4
September
1382.4
1404.36
October
1404.36
1417.55
November
1417.55
1418.17
December
1418.17
1421.85

What does DSP Strategic Bond 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 DSP Strategic Bond Fund Direct Plan Growth as on 07.10.2022 is 8.

Check DSP Strategic Bond 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.