ICICI Prudential Liquid Fund Direct Plan Bonus Net Asset Value

NAV details of ICICI Prudential Liquid Fund Direct Plan Bonus:

ICICI Prudential Liquid Fund Direct Plan Bonus NAV Today(25.09.2022)
₹149.190.01 %
Exit Load
0.01%

How was the NAV for ICICI Prudential Liquid Fund Direct Plan Bonus 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.

ICICI Prudential Liquid Fund Direct Plan Bonus NAV calculation:

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

ICICI Prudential Liquid Fund Direct Plan Bonus NAV History

ICICI Prudential Liquid Fund Direct Plan Bonus NAV Monthly History

Month
Open(₹)
Close(₹)
January
149.19
149.19
February
149.19
149.19
March
149.19
149.19
April
149.19
149.19
May
149.19
149.19
June
149.19
149.19
July
149.19
149.19
August
149.19
149.19
September
149.19
-
Month
Open(₹)
Close(₹)
January
149.19
149.19
February
149.19
149.19
March
149.19
149.19
April
149.19
149.19
May
149.19
149.19
June
149.19
149.19
July
149.19
149.19
August
149.19
149.19
September
149.19
149.19
October
149.19
149.19
November
149.19
149.19
December
149.19
149.19
Month
Open(₹)
Close(₹)
January
146.51
147.12
February
147.12
147.74
March
147.74
148.6
April
148.6
149.19
May
149.19
149.19
June
149.19
149.19
July
149.19
149.19
August
149.19
149.19
September
149.19
149.19
October
149.19
149.19
November
149.19
149.19
December
149.19
149.19
Month
Open(₹)
Close(₹)
January
137.36
138.17
February
138.17
138.92
March
138.92
139.84
April
139.84
140.66
May
140.66
141.52
June
141.52
142.33
July
142.33
143.15
August
143.15
143.84
September
143.84
144.54
October
144.54
145.25
November
145.25
145.88
December
145.88
146.51
Month
Open(₹)
Close(₹)
January
127.81
128.51
February
128.51
129.17
March
129.17
129.99
April
129.99
130.81
May
130.81
131.57
June
131.57
132.38
July
132.38
133.21
August
133.21
133.98
September
133.98
134.78
October
134.78
135.62
November
135.62
136.46
December
136.46
137.36
Month
Open(₹)
Close(₹)
January
119.81
120.47
February
120.47
121.08
March
121.08
121.76
April
121.76
122.43
May
122.43
123.11
June
123.11
123.74
July
123.74
124.45
August
124.45
125.12
September
125.12
125.78
October
125.78
126.46
November
126.46
127.09
December
127.09
127.81
Month
Open(₹)
Close(₹)
January
111.22
111.93
February
111.93
112.61
March
112.61
113.45
April
113.45
114.24
May
114.24
115
June
115
115.74
July
115.74
116.45
August
116.45
117.14
September
117.14
117.79
October
117.79
118.49
November
118.49
119.17
December
119.17
119.81
Month
Open(₹)
Close(₹)
January
102.59
103.32
February
103.32
103.99
March
103.99
104.75
April
104.75
105.51
May
105.51
106.29
June
106.29
107
July
107
107.71
August
107.71
108.44
September
108.44
109.14
October
109.14
109.84
November
109.84
110.52
December
110.52
111.22
Month
Open(₹)
Close(₹)
October
100.17
100.17
November
100.17
101.85
December
101.85
102.59

What does ICICI Prudential Liquid Fund Direct Plan Bonus’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 ICICI Prudential Liquid Fund Direct Plan Bonus as on 25.09.2022 is 7.33.

Check ICICI Prudential Liquid Fund Direct Plan Bonus 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.