DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital Wdrl Opt Net Asset Value

NAV details of DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital Wdrl Opt:

DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital Wdrl Opt NAV Today(06.10.2022)
₹1066.170.08 %
Exit Load
0%

How was the NAV for DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital 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 Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital Wdrl Opt NAV calculation:

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

DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital Wdrl Opt NAV History

DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital Wdrl Opt NAV Monthly History

Month
Open(₹)
Close(₹)
January
1062.62
1062.45
February
1062.45
1065.7
March
1065.7
1063.43
April
1063.43
1062.92
May
1062.92
1063.73
June
1063.73
1064.1
July
1064.1
1064.39
August
1064.39
1064.61
September
1064.61
1065.27
October
1065.27
-
Month
Open(₹)
Close(₹)
January
1060.09
1060.11
February
1060.11
1060.07
March
1060.07
1060.99
April
1060.99
1061.02
May
1061.02
1061.26
June
1061.26
1061.66
July
1061.66
1061.55
August
1061.55
1062.08
September
1062.08
1061.92
October
1061.92
1062.06
November
1062.06
1062.37
December
1062.37
1062.62
Month
Open(₹)
Close(₹)
January
1057.31
1057.28
February
1057.28
1061.89
March
1061.89
1058.96
April
1058.96
1059.3
May
1059.3
1058.68
June
1058.68
1059.07
July
1059.07
1058.91
August
1058.91
1059.18
September
1059.18
1059.46
October
1059.46
1059.22
November
1059.22
1059.47
December
1059.47
1060.09
Month
Open(₹)
Close(₹)
January
1046.99
1050.89
February
1050.89
1050.44
March
1050.44
1052.29
April
1052.29
1052.5
May
1052.5
1053.56
June
1053.56
1053.43
July
1053.43
1055.55
August
1055.55
1054.6
September
1054.6
1056.08
October
1056.08
1057.42
November
1057.42
1056.38
December
1056.38
1057.31
Month
Open(₹)
Close(₹)
January
1044.62
1045.36
February
1045.36
1044.82
March
1044.82
1053
April
1053
1049.22
May
1049.22
1048.37
June
1048.37
1048.11
July
1048.11
1049.34
August
1049.34
1049.48
September
1049.48
1047
October
1047
1050.19
November
1050.19
1050.16
December
1050.16
1046.99
Month
Open(₹)
Close(₹)
January
1039.94
1040.49
February
1040.49
1040.18
March
1040.18
1041.37
April
1041.37
1046.78
May
1046.78
1042.48
June
1042.48
1042.1
July
1042.1
1042.68
August
1042.68
1043.45
September
1043.45
1043.08
October
1043.08
1043.81
November
1043.81
1043.8
December
1043.8
1044.62
Month
Open(₹)
Close(₹)
January
1035.57
1035.5
February
1035.5
1036.63
March
1036.63
1038.79
April
1038.79
1036.6
May
1036.6
1037.59
June
1037.59
1038.15
July
1038.15
1038.33
August
1038.33
1039.04
September
1039.04
1038.86
October
1038.86
1039.15
November
1039.15
1039.66
December
1039.66
1039.94
Month
Open(₹)
Close(₹)
January
1025.6
1025.36
February
1025.36
1031.43
March
1031.43
1028.35
April
1028.35
1027.65
May
1027.65
1029.03
June
1029.03
1029.54
July
1029.54
1030
August
1030
1030.56
September
1030.56
1033.02
October
1033.02
1032.82
November
1032.82
1033.55
December
1033.55
1035.57
Month
Open(₹)
Close(₹)
January
1013.22
1012.8
February
1012.8
1019.39
March
1019.39
1022.63
April
1022.63
1017.05
May
1017.05
1017.66
June
1017.66
1018.29
July
1018.29
1020.02
August
1020.02
1020.81
September
1020.81
1022.49
October
1022.49
1023.02
November
1023.02
1023.55
December
1023.55
1025.6
Month
Open(₹)
Close(₹)
January
1005.79
1006.26
February
1006.26
1006.4
March
1006.4
1014.54
April
1014.54
1014.83
May
1014.83
1009
June
1009
1015.83
July
1015.83
1010.73
August
1010.73
1010.5
September
1010.5
1011.32
October
1011.32
1012.44
November
1012.44
1011.78
December
1011.78
1013.22

What does DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital 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 Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital Wdrl Opt as on 06.10.2022 is 5.23.

Check DSP Ultra Short Fund Direct Plan Monthly Reinvestment of Income Distribution cum capital 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.