HDFC Childrens Gift Fund Direct Plan(Lock-in) Net Asset Value

NAV details of HDFC Childrens Gift Fund Direct Plan(Lock-in):

HDFC Childrens Gift Fund Direct Plan(Lock-in) NAV Today(02.10.2022)
₹206.461.29 %
Exit Load
0%

How was the NAV for HDFC Childrens Gift Fund Direct Plan(Lock-in) 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.

HDFC Childrens Gift Fund Direct Plan(Lock-in) NAV calculation:

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

HDFC Childrens Gift Fund Direct Plan(Lock-in) NAV History

HDFC Childrens Gift Fund Direct Plan(Lock-in) NAV Monthly History

Month
Open(₹)
Close(₹)
January
199.35
200.41
February
200.41
192.09
March
192.09
199.52
April
199.52
196.27
May
196.27
193.73
June
193.73
188.9
July
188.9
204.15
August
204.15
207.53
September
207.53
-
Month
Open(₹)
Close(₹)
January
156.99
158.86
February
158.86
165.99
March
165.99
166.27
April
166.27
167.18
May
167.18
178.26
June
178.26
184.16
July
184.16
187.84
August
187.84
194.23
September
194.23
197.35
October
197.35
201.53
November
201.53
198.08
December
198.08
199.35
Month
Open(₹)
Close(₹)
January
132.21
133.48
February
133.48
128.66
March
128.66
101.89
April
101.89
113.72
May
113.72
115.07
June
115.07
122.71
July
122.71
128.47
August
128.47
134.37
September
134.37
135.07
October
135.07
135.78
November
135.78
150.17
December
150.17
156.99
Month
Open(₹)
Close(₹)
January
122.39
121.6
February
121.6
121.95
March
121.95
129.06
April
129.06
127.01
May
127.01
129.42
June
129.42
129.87
July
129.87
121.99
August
121.99
123.5
September
123.5
126.51
October
126.51
130.01
November
130.01
131.56
December
131.56
132.21
Month
Open(₹)
Close(₹)
January
122.12
122.99
February
122.99
119.15
March
119.15
117.54
April
117.54
122.76
May
122.76
120.55
June
120.55
118.99
July
118.99
123.7
August
123.7
127
September
127
119.68
October
119.68
118.06
November
118.06
120.91
December
120.91
122.39
Month
Open(₹)
Close(₹)
January
92.78
97.44
February
97.44
100.15
March
100.15
103.46
April
103.46
106.04
May
106.04
107.89
June
107.89
109.35
July
109.35
113.89
August
113.89
112.69
September
112.69
111.63
October
111.63
118.49
November
118.49
118.57
December
118.57
122.12
Month
Open(₹)
Close(₹)
January
85.7
81.91
February
81.91
78.46
March
78.46
83.58
April
83.58
85.25
May
85.25
87.28
June
87.28
90.19
July
90.19
93.99
August
93.99
96.42
September
96.42
96.24
October
96.24
97.98
November
97.98
94.59
December
94.59
92.78
Month
Open(₹)
Close(₹)
January
82.88
85.56
February
85.56
85.56
March
85.56
85.56
April
85.56
83.29
May
83.29
84.78
June
84.78
85.49
July
85.49
87.28
August
87.28
83.06
September
83.06
83.63
October
83.63
85.23
November
85.23
84.88
December
84.88
85.7
Month
Open(₹)
Close(₹)
January
57.61
57.03
February
57.03
59.3
March
59.3
61.22
April
61.22
62.84
May
62.84
67.67
June
67.67
72.13
July
72.13
72.14
August
72.14
75.8
September
75.8
77.11
October
77.11
79.41
November
79.41
81.93
December
81.93
82.88
Month
Open(₹)
Close(₹)
January
50.85
50.41
February
50.41
48.71
March
48.71
48.56
April
48.56
49.53
May
49.53
50.72
June
50.72
50.08
July
50.08
49.35
August
49.35
48.36
September
48.36
50.83
October
50.83
54.41
November
54.41
55.05
December
55.05
57.61

What does HDFC Childrens Gift Fund Direct Plan(Lock-in)’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 HDFC Childrens Gift Fund Direct Plan(Lock-in) as on 02.10.2022 is 15.47.

Check HDFC Childrens Gift Fund Direct Plan(Lock-in) 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.