Franklin India Flexi Cap Fund Direct Growth Net Asset Value

NAV details of Franklin India Flexi Cap Fund Direct Growth:

Franklin India Flexi Cap Fund Direct Growth NAV Today(29.09.2022)
₹1034.191.93 %
Exit Load
1%

How was the NAV for Franklin India Flexi Cap 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.

Franklin India Flexi Cap Fund Direct Growth NAV calculation:

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

Franklin India Flexi Cap Fund Direct Growth NAV History

Franklin India Flexi Cap Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
1041.48
1067.72
February
1067.72
1005.01
March
1005.01
1045.26
April
1045.26
1017.58
May
1017.58
986.52
June
986.52
940.47
July
940.47
1027.57
August
1027.57
1062.16
September
1062.16
-
Month
Open(₹)
Close(₹)
January
740.8
793.3
February
793.3
838.9
March
838.9
837.57
April
837.57
822.82
May
822.82
884.5
June
884.5
910.98
July
910.98
934.04
August
934.04
979.52
September
979.52
1023.87
October
1023.87
1075.09
November
1075.09
1027.62
December
1027.62
1041.48
Month
Open(₹)
Close(₹)
January
631.9
637.69
February
637.69
593.12
March
593.12
428.11
April
428.11
504.83
May
504.83
516.14
June
516.14
548.62
July
548.62
570.36
August
570.36
601.27
September
601.27
586.74
October
586.74
604.1
November
604.1
700.61
December
700.61
740.8
Month
Open(₹)
Close(₹)
January
606.21
600.59
February
600.59
601.11
March
601.11
642.8
April
642.8
636.26
May
636.26
634.68
June
634.68
628.14
July
628.14
579.67
August
579.67
575.39
September
575.39
594.8
October
594.8
618.85
November
618.85
631.23
December
631.23
631.9
Month
Open(₹)
Close(₹)
January
622.68
638.32
February
638.32
608.88
March
608.88
592.05
April
592.05
623.82
May
623.82
608.08
June
608.08
604.84
July
604.84
626.71
August
626.71
655.51
September
655.51
604.83
October
604.83
581.01
November
581.01
597.59
December
597.59
606.21
Month
Open(₹)
Close(₹)
January
474.34
506.86
February
506.86
526.68
March
526.68
541.18
April
541.18
550.4
May
550.4
558.37
June
558.37
555.94
July
555.94
590.68
August
590.68
582.33
September
582.33
571.88
October
571.88
606.91
November
606.91
601.68
December
601.68
622.68
Month
Open(₹)
Close(₹)
January
448.94
428.27
February
428.27
411.93
March
411.93
443.06
April
443.06
455.24
May
455.24
468.08
June
468.08
482.67
July
482.67
495.85
August
495.85
506.4
September
506.4
502.17
October
502.17
509.53
November
509.53
480.58
December
480.58
474.34
Month
Open(₹)
Close(₹)
January
424.47
449.51
February
449.51
447.95
March
447.95
455.02
April
455.02
435.62
May
435.62
453.09
June
453.09
455.14
July
455.14
468.64
August
468.64
438.32
September
438.32
448.07
October
448.07
451.49
November
451.49
450.94
December
450.94
448.94
Month
Open(₹)
Close(₹)
January
268.37
259.45
February
259.45
268.93
March
268.93
290.75
April
290.75
291.13
May
291.13
319.86
June
319.86
343.34
July
343.34
346.09
August
346.09
369.6
September
369.6
378.89
October
378.89
397.03
November
397.03
420.62
December
420.62
424.47
Month
Open(₹)
Close(₹)
January
253.69
255.41
February
255.41
241.28
March
241.28
239.4
April
239.4
243.78
May
243.78
247.07
June
247.07
243.02
July
243.02
235.38
August
235.38
224.35
September
224.35
238.53
October
238.53
259.94
November
259.94
259.29
December
259.29
268.37

What does Franklin India Flexi Cap 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 Franklin India Flexi Cap Fund Direct Growth as on 29.09.2022 is 15.53.

Check Franklin India Flexi Cap 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.