DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt Net Asset Value

NAV details of DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt:

DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt NAV Today(04.10.2022)
₹1051.480.04 %
Exit Load
0%

How was the NAV for DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt 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 Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt NAV calculation:

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

DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt NAV History

DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt NAV Monthly History

Month
Open(₹)
Close(₹)
January
1053.7
1049.85
February
1049.85
1054.43
March
1054.43
1055.51
April
1055.51
1050.9
May
1050.9
1048.15
June
1048.15
1050.83
July
1050.83
1056.32
August
1056.32
1055.51
September
1055.51
1051.07
October
1051.07
-
Month
Open(₹)
Close(₹)
January
1055.93
1039.48
February
1039.48
1028.59
March
1028.59
1040.93
April
1040.93
1051.58
May
1051.58
1052.41
June
1052.41
1050.4
July
1050.4
1054.76
August
1054.76
1059.65
September
1059.65
1052.16
October
1052.16
1052.2
November
1052.2
1056.71
December
1056.71
1053.7
Month
Open(₹)
Close(₹)
January
1060.48
1054.01
February
1054.01
1055.37
March
1055.37
1054.98
April
1054.98
1049.38
May
1049.38
1052.31
June
1052.31
1062.58
July
1062.58
1054.91
August
1054.91
1049.82
September
1049.82
1050.6
October
1050.6
1055.51
November
1055.51
1053.35
December
1053.35
1055.93
Month
Open(₹)
Close(₹)
January
1049.52
1048.81
February
1048.81
1056.35
March
1056.35
1057.36
April
1057.36
1050.67
May
1050.67
1062.12
June
1062.12
1058.71
July
1058.71
1054.48
August
1054.48
1051.47
September
1051.47
1057.55
October
1057.55
1056.47
November
1056.47
1055.5
December
1055.5
1060.48
Month
Open(₹)
Close(₹)
January
1038.17
1031.5
February
1031.5
1031.69
March
1031.69
1050.19
April
1050.19
1033.23
May
1033.23
1032.85
June
1032.85
1034.65
July
1034.65
1045.02
August
1045.02
1046.45
September
1046.45
1051.15
October
1051.15
1055.51
November
1055.51
1055.56
December
1055.56
1049.52
Month
Open(₹)
Close(₹)
January
1024.81
1034.84
February
1034.84
1013.75
March
1013.75
1025.55
April
1025.55
1025.09
May
1025.09
1039.62
June
1039.62
1051.5
July
1051.5
1055.21
August
1055.21
1057.52
September
1057.52
1050.84
October
1050.84
1049.77
November
1049.77
1046.68
December
1046.68
1038.17
Month
Open(₹)
Close(₹)
January
1022.69
1022.37
February
1022.37
1022.11
March
1022.11
1021.33
April
1021.33
1022.13
May
1022.13
1021.62
June
1021.62
1023.26
July
1023.26
1030.74
August
1030.74
1032.54
September
1032.54
1034.69
October
1034.69
1030.12
November
1030.12
1051.08
December
1051.08
1024.81
Month
Open(₹)
Close(₹)
January
1021.33
1022.44
February
1022.44
1021.97
March
1021.97
1023.22
April
1023.22
1017.95
May
1017.95
1022.83
June
1022.83
1016.5
July
1016.5
1022.68
August
1022.68
1023.01
September
1023.01
1021.33
October
1021.33
1019.79
November
1019.79
1019.13
December
1019.13
1022.69
Month
Open(₹)
Close(₹)
January
1019.54
1012.32
February
1012.32
1017.52
March
1017.52
1020.75
April
1020.75
1022.6
May
1022.6
1022.04
June
1022.04
1016.54
July
1016.54
1016.64
August
1016.64
1020.77
September
1020.77
1021.83
October
1021.83
1021.84
November
1021.84
1026.31
December
1026.31
1021.33
Month
Open(₹)
Close(₹)
January
1010.48
1010.91
February
1010.91
1009.89
March
1009.89
1012.29
April
1012.29
1014.93
May
1014.93
1017.53
June
1017.53
1011.96
July
1011.96
994.55
August
994.55
992.43
September
992.43
1008.19
October
1008.19
1017.67
November
1017.67
1018.1
December
1018.1
1019.54

What does DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt’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 Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt as on 04.10.2022 is 5.79.

Check DSP Strategic Bond Fund Direct Plan Weekly Reinvestment of Income Distribution cum Cptl Wdrl Opt 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.