Franklin India Short Term Income Plan Direct Plan Growth Net Asset Value

NAV details of Franklin India Short Term Income Plan Direct Plan Growth:

Franklin India Short Term Income Plan Direct Plan Growth NAV Today(06.10.2022)
₹4737.770.07 %
Exit Load
0.5%

How was the NAV for Franklin India Short Term Income Plan Direct Plan 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 Short Term Income Plan Direct Plan Growth NAV calculation:

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

Franklin India Short Term Income Plan Direct Plan Growth NAV History

Franklin India Short Term Income Plan Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
4721.73
4724.11
February
4724.11
4712.71
March
4712.71
4730.08
April
4730.08
4722.77
May
4722.77
4697.7
June
4697.7
4719.96
July
4719.96
4750.84
August
4750.84
4749.5
September
4749.5
4732.66
October
4732.66
-
Month
Open(₹)
Close(₹)
January
4102.87
4135.37
February
4135.37
4185.83
March
4185.83
4249.99
April
4249.99
4328.42
May
4328.42
4354.19
June
4354.19
4377.79
July
4377.79
4238.83
August
4238.83
4284.54
September
4284.54
4651.65
October
4651.65
4667.38
November
4667.38
4701.17
December
4701.17
4721.73
Month
Open(₹)
Close(₹)
January
4304.13
4157.46
February
4157.46
4197.45
March
4197.45
4052.25
April
4052.25
3903.77
May
3903.77
3959.55
June
3959.55
3979.3
July
3979.3
3934.4
August
3934.4
3783.08
September
3783.08
3841.36
October
3841.36
3907.49
November
3907.49
4010.7
December
4010.7
4102.87
Month
Open(₹)
Close(₹)
January
4093.33
4117.75
February
4117.75
4142.25
March
4142.25
4195.69
April
4195.69
4188.34
May
4188.34
4236.11
June
4236.11
4224.49
July
4224.49
4264
August
4264
4274.15
September
4274.15
4291.2
October
4291.2
4300.23
November
4300.23
4327.31
December
4327.31
4304.13
Month
Open(₹)
Close(₹)
January
3739.56
3753.45
February
3753.45
3772.58
March
3772.58
3823.14
April
3823.14
3821.92
May
3821.92
3835.53
June
3835.53
3862.79
July
3862.79
3908.43
August
3908.43
3937.81
September
3937.81
3945.74
October
3945.74
3971.73
November
3971.73
4020.35
December
4020.35
4093.33
Month
Open(₹)
Close(₹)
January
3416.46
3459.67
February
3459.67
3478.49
March
3478.49
3502.92
April
3502.92
3527.01
May
3527.01
3562.7
June
3562.7
3597.64
July
3597.64
3639.94
August
3639.94
3672.86
September
3672.86
3688.25
October
3688.25
3719.96
November
3719.96
3728.72
December
3728.72
3739.56
Month
Open(₹)
Close(₹)
January
3133.28
3147.1
February
3147.1
3108.07
March
3108.07
3132.03
April
3132.03
3166.78
May
3166.78
3196.09
June
3196.09
3223.46
July
3223.46
3269.61
August
3269.61
3302.46
September
3302.46
3332.32
October
3332.32
3361.82
November
3361.82
3408.91
December
3408.91
3416.46
Month
Open(₹)
Close(₹)
January
2847.53
2885.81
February
2885.81
2902.18
March
2902.18
2927.44
April
2927.44
2945.83
May
2945.83
2973.28
June
2973.28
2987.41
July
2987.41
3020.05
August
3020.05
3044.99
September
3044.99
3069.11
October
3069.11
3094.65
November
3094.65
3113.85
December
3113.85
3133.28
Month
Open(₹)
Close(₹)
January
2526.34
2543.77
February
2543.77
2560.55
March
2560.55
2592.41
April
2592.41
2618.88
May
2618.88
2650.99
June
2650.99
2673.18
July
2673.18
2693.4
August
2693.4
2715.95
September
2715.95
2745.54
October
2745.54
2786.67
November
2786.67
2826.21
December
2826.21
2847.53
Month
Open(₹)
Close(₹)
January
2303.58
2321.97
February
2321.97
2332.55
March
2332.55
2357.21
April
2357.21
2394.8
May
2394.8
2423.49
June
2423.49
2433.28
July
2433.28
2400.47
August
2400.47
2396.36
September
2396.36
2448.3
October
2448.3
2486.95
November
2486.95
2504.06
December
2504.06
2526.34

What does Franklin India Short Term Income Plan Direct Plan 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 Short Term Income Plan Direct Plan Growth as on 06.10.2022 is 7.67.

Check Franklin India Short Term Income Plan Direct Plan 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.