Franklin India Prima Fund Direct Growth Net Asset Value

NAV details of Franklin India Prima Fund Direct Growth:

Franklin India Prima Fund Direct Growth NAV Today(04.10.2022)
₹1636.282.3 %
Exit Load
1%

How was the NAV for Franklin India Prima 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 Prima Fund Direct Growth NAV calculation:

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

Franklin India Prima Fund Direct Growth NAV History

Franklin India Prima Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
1637.14
1630.88
February
1630.88
1526.33
March
1526.33
1575.07
April
1575.07
1568.18
May
1568.18
1480.75
June
1480.75
1419.89
July
1419.89
1600.12
August
1600.12
1667.2
September
1667.2
-
Month
Open(₹)
Close(₹)
January
1235.44
1265.14
February
1265.14
1378.36
March
1378.36
1372.31
April
1372.31
1361.95
May
1361.95
1442.54
June
1442.54
1513.92
July
1513.92
1565.57
August
1565.57
1628.16
September
1628.16
1677.47
October
1677.47
1711.67
November
1711.67
1634.32
December
1634.32
1637.14
Month
Open(₹)
Close(₹)
January
1033.57
1064.01
February
1064.01
1015.63
March
1015.63
728.53
April
728.53
836.4
May
836.4
835.38
June
835.38
897.79
July
897.79
916.25
August
916.25
996.67
September
996.67
999.05
October
999.05
1020.76
November
1020.76
1182.98
December
1182.98
1235.44
Month
Open(₹)
Close(₹)
January
988.17
971.35
February
971.35
971.89
March
971.89
1038.51
April
1038.51
1012.02
May
1012.02
1033.28
June
1033.28
1027.14
July
1027.14
954.44
August
954.44
949.15
September
949.15
981.33
October
981.33
1030.53
November
1030.53
1037.9
December
1037.9
1033.57
Month
Open(₹)
Close(₹)
January
1072.07
1068.69
February
1068.69
1035.77
March
1035.77
1012.78
April
1012.78
1058.96
May
1058.96
1030.44
June
1030.44
990.35
July
990.35
1030.84
August
1030.84
1062.57
September
1062.57
951.77
October
951.77
941.96
November
941.96
964.61
December
964.61
988.17
Month
Open(₹)
Close(₹)
January
763.9
827.89
February
827.89
856.28
March
856.28
898.62
April
898.62
934.69
May
934.69
934.74
June
934.74
926.02
July
926.02
963.36
August
963.36
960.62
September
960.62
955.98
October
955.98
1002.19
November
1002.19
1019.52
December
1019.52
1072.07
Month
Open(₹)
Close(₹)
January
703.06
661.17
February
661.17
626.32
March
626.32
673.58
April
673.58
699.84
May
699.84
725.43
June
725.43
762.41
July
762.41
795.94
August
795.94
819.68
September
819.68
816.62
October
816.62
840.9
November
840.9
772.8
December
772.8
763.9
Month
Open(₹)
Close(₹)
January
646.2
679
February
679
681.63
March
681.63
687.95
April
687.95
659.75
May
659.75
684.39
June
684.39
687.02
July
687.02
710.03
August
710.03
659.91
September
659.91
672.09
October
672.09
686.39
November
686.39
693.3
December
693.3
703.06
Month
Open(₹)
Close(₹)
January
358.56
344.19
February
344.19
357.86
March
357.86
395.97
April
395.97
405.56
May
405.56
458.84
June
458.84
504.98
July
504.98
505.36
August
505.36
542.95
September
542.95
556.89
October
556.89
581.99
November
581.99
618.62
December
618.62
646.2
Month
Open(₹)
Close(₹)
January
333.18
327.84
February
327.84
310.31
March
310.31
308.93
April
308.93
311.06
May
311.06
321.02
June
321.02
316
July
316
301.72
August
301.72
283.8
September
283.8
307.42
October
307.42
334.2
November
334.2
342.57
December
342.57
358.56

What does Franklin India Prima 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 Prima Fund Direct Growth as on 04.10.2022 is 17.76.

Check Franklin India Prima 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.