Franklin India Smaller Companies Fund Direct Growth Net Asset Value

NAV details of Franklin India Smaller Companies Fund Direct Growth:

Franklin India Smaller Companies Fund Direct Growth NAV Today(04.10.2022)
₹102.541.56 %
Exit Load
1%

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

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

Franklin India Smaller Companies Fund Direct Growth NAV History

Franklin India Smaller Companies Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
101.64
100.67
February
100.67
94.37
March
94.37
99.17
April
99.17
98.92
May
98.92
91.61
June
91.61
87.79
July
87.79
97.06
August
97.06
100.96
September
100.96
102.54
October
102.54
-
Month
Open(₹)
Close(₹)
January
65.08
66.57
February
66.57
73.92
March
73.92
74.16
April
74.16
74.82
May
74.82
80.68
June
80.68
85.32
July
85.32
91.82
August
91.82
92.8
September
92.8
97.22
October
97.22
99.4
November
99.4
98.95
December
98.95
101.64
Month
Open(₹)
Close(₹)
January
54.14
56.33
February
56.33
52.47
March
52.47
36.03
April
36.03
40.39
May
40.39
39.6
June
39.6
42.93
July
42.93
45.16
August
45.16
50.1
September
50.1
52.22
October
52.22
52.2
November
52.2
60.13
December
60.13
65.08
Month
Open(₹)
Close(₹)
January
56.27
54.91
February
54.91
54.4
March
54.4
59.27
April
59.27
57.65
May
57.65
58.86
June
58.86
57.12
July
57.12
51.11
August
51.11
50.47
September
50.47
52.7
October
52.7
53.73
November
53.73
53.51
December
53.51
54.14
Month
Open(₹)
Close(₹)
January
67
65.8
February
65.8
64.4
March
64.4
62.39
April
62.39
65.85
May
65.85
62.73
June
62.73
60.34
July
60.34
61.3
August
61.3
61.9
September
61.9
55.39
October
55.39
54.43
November
54.43
54.62
December
54.62
56.27
Month
Open(₹)
Close(₹)
January
46.22
49.99
February
49.99
51.16
March
51.16
54.08
April
54.08
56.14
May
56.14
56.28
June
56.28
56.36
July
56.36
57.97
August
57.97
58.63
September
58.63
58.86
October
58.86
62.23
November
62.23
64.36
December
64.36
67
Month
Open(₹)
Close(₹)
January
41.67
39.02
February
39.02
36.75
March
36.75
39.71
April
39.71
41.72
May
41.72
43.22
June
43.22
45.49
July
45.49
47.55
August
47.55
49.18
September
49.18
49.17
October
49.17
50.86
November
50.86
46.92
December
46.92
46.22
Month
Open(₹)
Close(₹)
January
37.3
38.63
February
38.63
38.84
March
38.84
39.84
April
39.84
38.46
May
38.46
39.49
June
39.49
39.19
July
39.19
40.98
August
40.98
38.46
September
38.46
39.59
October
39.59
40.39
November
40.39
40.82
December
40.82
41.67
Month
Open(₹)
Close(₹)
January
19.53
18.76
February
18.76
19.7
March
19.7
21.76
April
21.76
22.68
May
22.68
25.9
June
25.9
28.59
July
28.59
29.4
August
29.4
32.15
September
32.15
32.84
October
32.84
34.14
November
34.14
35.8
December
35.8
37.3
Month
Open(₹)
Close(₹)
January
17.2
17.23
February
17.23
16.12
March
16.12
16.01
April
16.01
16.09
May
16.09
16.8
June
16.8
16.4
July
16.4
15.52
August
15.52
14.83
September
14.83
16.12
October
16.12
17.8
November
17.8
18.46
December
18.46
19.53

What does Franklin India Smaller Companies 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 Smaller Companies Fund Direct Growth as on 04.10.2022 is 20.11.

Check Franklin India Smaller Companies 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.