HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt Net Asset Value

NAV details of HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt:

HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt NAV Today(30.09.2022)
₹64.011.92 %
Exit Load
1%

How was the NAV for HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt 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 Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt NAV calculation:

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

HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt NAV History

HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt NAV Monthly History

Month
Open(₹)
Close(₹)
January
64.09
67.47
February
67.47
63.8
March
63.8
61.96
April
61.96
61.3
May
61.3
60.1
June
60.1
57.71
July
57.71
63.79
August
63.79
65.63
September
65.63
-
Month
Open(₹)
Close(₹)
January
51.53
54.04
February
54.04
58.88
March
58.88
53.01
April
53.01
52.15
May
52.15
57.3
June
57.3
58.01
July
58.01
59.02
August
59.02
60.79
September
60.79
64.29
October
64.29
66.3
November
66.3
63.48
December
63.48
64.09
Month
Open(₹)
Close(₹)
January
55.03
53.78
February
53.78
49.52
March
49.52
31.46
April
31.46
37.06
May
37.06
36.45
June
36.45
38.57
July
38.57
39.87
August
39.87
42.36
September
42.36
40.44
October
40.44
40.78
November
40.78
47.38
December
47.38
51.53
Month
Open(₹)
Close(₹)
January
57
56.27
February
56.27
56.11
March
56.11
55.49
April
55.49
54.74
May
54.74
56.58
June
56.58
56.9
July
56.9
51.68
August
51.68
50.61
September
50.61
51.57
October
51.57
54.36
November
54.36
54.8
December
54.8
55.03
Month
Open(₹)
Close(₹)
January
63.98
65.91
February
65.91
61.24
March
61.24
52.8
April
52.8
55.71
May
55.71
54.23
June
54.23
52.93
July
52.93
56.6
August
56.6
59.7
September
59.7
55.69
October
55.69
55
November
55
55.39
December
55.39
57
Month
Open(₹)
Close(₹)
January
51.01
55.45
February
55.45
56.37
March
56.37
53.2
April
53.2
55.1
May
55.1
56.35
June
56.35
55.96
July
55.96
59.56
August
59.56
58.21
September
58.21
56.78
October
56.78
62.71
November
62.71
61.8
December
61.8
63.98
Month
Open(₹)
Close(₹)
January
52.48
47.11
February
47.11
43.92
March
43.92
44.32
April
44.32
45.6
May
45.6
47.35
June
47.35
49.27
July
49.27
51.45
August
51.45
52.97
September
52.97
53.2
October
53.2
54.61
November
54.61
51.99
December
51.99
51.01
Month
Open(₹)
Close(₹)
January
60.09
62.72
February
62.72
61.45
March
61.45
55.23
April
55.23
53.6
May
53.6
54.72
June
54.72
54.92
July
54.92
56.01
August
56.01
50.98
September
50.98
51.99
October
51.99
52.73
November
52.73
53.14
December
53.14
52.48
Month
Open(₹)
Close(₹)
January
42.56
40.44
February
40.44
42.34
March
42.34
42.27
April
42.27
43.37
May
43.37
49.78
June
49.78
54.13
July
54.13
53
August
53
56.65
September
56.65
56.41
October
56.41
58.97
November
58.97
61.83
December
61.83
60.09
Month
Open(₹)
Close(₹)
January
45.58
45.92
February
45.92
42.4
March
42.4
37.84
April
37.84
39.21
May
39.21
39.16
June
39.16
37.9
July
37.9
34.91
August
34.91
33.75
September
33.75
35.94
October
35.94
40.37
November
40.37
40.66
December
40.66
42.56

What does HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt’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 Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt as on 30.09.2022 is 13.44.

Check HDFC Flexi Cap Fund -Direct Plan Reinvestment Inc Dist cum Cap Wdrl Opt 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.