Edelweiss Liquid Fund Direct Growth Net Asset Value

NAV details of Edelweiss Liquid Fund Direct Growth:

Edelweiss Liquid Fund Direct Growth NAV Today(04.10.2022)
₹2811.440.02 %
Exit Load
0.01%

How was the NAV for Edelweiss Liquid Fund Direct 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.

Edelweiss Liquid Fund Direct Growth NAV calculation:

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

Edelweiss Liquid Fund Direct Growth NAV History

Edelweiss Liquid Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
2723.82
2731.48
February
2731.48
2739.21
March
2739.21
2747.9
April
2747.9
2755.9
May
2755.9
2763.74
June
2763.74
2774.9
July
2774.9
2785.97
August
2785.97
2799.19
September
2799.19
2811.44
October
2811.44
-
Month
Open(₹)
Close(₹)
January
2631.99
2638.93
February
2638.93
2645.91
March
2645.91
2653.85
April
2653.85
2661.19
May
2661.19
2669.15
June
2669.15
2676.91
July
2676.91
2684.9
August
2684.9
2693.07
September
2693.07
2699.96
October
2699.96
2707.14
November
2707.14
2715.56
December
2715.56
2723.82
Month
Open(₹)
Close(₹)
January
2521.6
2532.06
February
2532.06
2542.89
March
2542.89
2558.17
April
2558.17
2569.61
May
2569.61
2581.43
June
2581.43
2589.16
July
2589.16
2595.41
August
2595.41
2603.12
September
2603.12
2610.46
October
2610.46
2617.86
November
2617.86
2624.8
December
2624.8
2631.99
Month
Open(₹)
Close(₹)
January
2360.99
2374.99
February
2374.99
2388.17
March
2388.17
2403.41
April
2403.41
2418.15
May
2418.15
2432.72
June
2432.72
2446.98
July
2446.98
2461.18
August
2461.18
2474
September
2474
2486.49
October
2486.49
2498.54
November
2498.54
2510.27
December
2510.27
2521.6
Month
Open(₹)
Close(₹)
January
2195.58
2207.86
February
2207.86
2219.3
March
2219.3
2232.84
April
2232.84
2247.2
May
2247.2
2260.21
June
2260.21
2274.48
July
2274.48
2288.89
August
2288.89
2302.27
September
2302.27
2316.36
October
2316.36
2331.47
November
2331.47
2346.04
December
2346.04
2360.99
Month
Open(₹)
Close(₹)
January
2057.2
2068.58
February
2068.58
2079.02
March
2079.02
2090.47
April
2090.47
2101.82
May
2101.82
2113.32
June
2113.32
2124.23
July
2124.23
2136.72
August
2136.72
2148.58
September
2148.58
2159.28
October
2159.28
2171.91
November
2171.91
2182.97
December
2182.97
2195.58
Month
Open(₹)
Close(₹)
January
1924.34
1936.17
February
1936.17
1947.04
March
1947.04
1958.46
April
1958.46
1971.88
May
1971.88
1983.66
June
1983.66
1994.22
July
1994.22
2004.78
August
2004.78
2015.59
September
2015.59
2025.75
October
2025.75
2037.02
November
2037.02
2046.44
December
2046.44
2057.2
Month
Open(₹)
Close(₹)
January
1778.59
1791.38
February
1791.38
1802.95
March
1802.95
1815.94
April
1815.94
1828.91
May
1828.91
1842.37
June
1842.37
1854.76
July
1854.76
1866.91
August
1866.91
1879.47
September
1879.47
1891
October
1891
1902
November
1902
1912.77
December
1912.77
1924.34
Month
Open(₹)
Close(₹)
January
1628.15
1640.02
February
1640.02
1651.03
March
1651.03
1665.31
April
1665.31
1678.02
May
1678.02
1690.64
June
1690.64
1702.84
July
1702.84
1715.43
August
1715.43
1727.96
September
1727.96
1740.48
October
1740.48
1752.93
November
1752.93
1765.6
December
1765.6
1778.59
Month
Open(₹)
Close(₹)
January
1489.38
1500.28
February
1500.28
1509.99
March
1509.99
1521.57
April
1521.57
1532.69
May
1532.69
1543.33
June
1543.33
1553.9
July
1553.9
1561.84
August
1561.84
1575.89
September
1575.89
1589.9
October
1589.9
1603.38
November
1603.38
1615.56
December
1615.56
1628.15

What does Edelweiss Liquid Fund Direct 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 Edelweiss Liquid Fund Direct Growth as on 04.10.2022 is 6.74.

Check Edelweiss Liquid Fund Direct 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.