HDFC Liquid Fund -Direct Plan - Growth Option Net Asset Value

NAV details of HDFC Liquid Fund -Direct Plan - Growth Option:

HDFC Liquid Fund -Direct Plan - Growth Option NAV Today(03.10.2022)
₹4281.440.02 %
Exit Load
0.01%

How was the NAV for HDFC Liquid Fund -Direct Plan - Growth Option 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 Liquid Fund -Direct Plan - Growth Option NAV calculation:

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

HDFC Liquid Fund -Direct Plan - Growth Option NAV History

HDFC Liquid Fund -Direct Plan - Growth Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
4148.2
4159.75
February
4159.75
4171.63
March
4171.63
4185.17
April
4185.17
4197.45
May
4197.45
4210.51
June
4210.51
4227.18
July
4227.18
4243.65
August
4243.65
4263.16
September
4263.16
4281.44
October
4281.44
-
Month
Open(₹)
Close(₹)
January
4015.03
4024.63
February
4024.63
4034.62
March
4034.62
4045.86
April
4045.86
4055.86
May
4055.86
4067.06
June
4067.06
4078.48
July
4078.48
4090.06
August
4090.06
4102.15
September
4102.15
4112.27
October
4112.27
4122.95
November
4122.95
4135.81
December
4135.81
4148.2
Month
Open(₹)
Close(₹)
January
3853.04
3868.69
February
3868.69
3885.05
March
3885.05
3907.11
April
3907.11
3923.09
May
3923.09
3939.81
June
3939.81
3951.9
July
3951.9
3962.02
August
3962.02
3973.56
September
3973.56
3983.82
October
3983.82
3995.02
November
3995.02
4005.33
December
4005.33
4015.03
Month
Open(₹)
Close(₹)
January
3613.87
3635.24
February
3635.24
3655.16
March
3655.16
3679.01
April
3679.01
3700.4
May
3700.4
3723.06
June
3723.06
3744.38
July
3744.38
3765.56
August
3765.56
3783.61
September
3783.61
3802.23
October
3802.23
3820.43
November
3820.43
3836.93
December
3836.93
3853.04
Month
Open(₹)
Close(₹)
January
3366.73
3385.1
February
3385.1
3402.19
March
3402.19
3421.94
April
3421.94
3443.7
May
3443.7
3463.18
June
3463.18
3484.5
July
3484.5
3505.56
August
3505.56
3525.73
September
3525.73
3546.5
October
3546.5
3568.58
November
3568.58
3590.54
December
3590.54
3613.87
Month
Open(₹)
Close(₹)
January
3157.74
3175.2
February
3175.2
3191.18
March
3191.18
3208.92
April
3208.92
3226.68
May
3226.68
3244.32
June
3244.32
3260.91
July
3260.91
3279.46
August
3279.46
3297.08
September
3297.08
3312.91
October
3312.91
3331.61
November
3331.61
3348.14
December
3348.14
3366.73
Month
Open(₹)
Close(₹)
January
2931.71
2950.38
February
2950.38
2968.33
March
2968.33
2990.2
April
2990.2
3011.36
May
3011.36
3031.39
June
3031.39
3050.55
July
3050.55
3069.39
August
3069.39
3087.67
September
3087.67
3104.55
October
3104.55
3123.24
November
3123.24
3140.74
December
3140.74
3157.74
Month
Open(₹)
Close(₹)
January
2704.42
2723.74
February
2723.74
2741.35
March
2741.35
2761.28
April
2761.28
2781.18
May
2781.18
2801.7
June
2801.7
2820.47
July
2820.47
2839.04
August
2839.04
2858.43
September
2858.43
2876.69
October
2876.69
2895.31
November
2895.31
2913.06
December
2913.06
2931.71
Month
Open(₹)
Close(₹)
January
2477.53
2495.47
February
2495.47
2512
March
2512
2533.94
April
2533.94
2552.98
May
2552.98
2572.14
June
2572.14
2590.51
July
2590.51
2609.13
August
2609.13
2628.08
September
2628.08
2646.84
October
2646.84
2665.78
November
2665.78
2685.15
December
2685.15
2704.42
Month
Open(₹)
Close(₹)
January
2265.64
2281.8
February
2281.8
2296.29
March
2296.29
2314.79
April
2314.79
2331.83
May
2331.83
2347.95
June
2347.95
2364.27
July
2364.27
2377.07
August
2377.07
2397.93
September
2397.93
2419.12
October
2419.12
2439.93
November
2439.93
2458.63
December
2458.63
2477.53

What does HDFC Liquid Fund -Direct Plan - Growth Option’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 Liquid Fund -Direct Plan - Growth Option as on 03.10.2022 is 6.75.

Check HDFC Liquid Fund -Direct Plan - Growth Option 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.