ICICI Prudential Multicap Fund Direct Plan Growth Net Asset Value

NAV details of ICICI Prudential Multicap Fund Direct Plan Growth:

ICICI Prudential Multicap Fund Direct Plan Growth NAV Today(04.10.2022)
₹486.680.94 %
Exit Load
1%

How was the NAV for ICICI Prudential Multicap Fund Direct Plan 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.

ICICI Prudential Multicap Fund Direct Plan Growth NAV calculation:

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

ICICI Prudential Multicap Fund Direct Plan Growth NAV History

ICICI Prudential Multicap Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
482.92
489.84
February
489.84
459.8
March
459.8
482.16
April
482.16
475.63
May
475.63
454.43
June
454.43
441.02
July
441.02
485.43
August
485.43
495.7
September
495.7
491.28
October
491.28
-
Month
Open(₹)
Close(₹)
January
352.66
365.17
February
365.17
393.6
March
393.6
389.39
April
389.39
386.61
May
386.61
418.89
June
418.89
431.74
July
431.74
454.6
August
454.6
466.83
September
466.83
478.59
October
478.59
495.13
November
495.13
473.87
December
473.87
482.92
Month
Open(₹)
Close(₹)
January
319.12
317.67
February
317.67
295.15
March
295.15
212.16
April
212.16
250.96
May
250.96
252.6
June
252.6
263.59
July
263.59
275.39
August
275.39
292.7
September
292.7
283.68
October
283.68
287.09
November
287.09
330.55
December
330.55
352.66
Month
Open(₹)
Close(₹)
January
297.85
289.8
February
289.8
293.41
March
293.41
314.04
April
314.04
312.26
May
312.26
317.16
June
317.16
317.24
July
317.24
293.34
August
293.34
289.94
September
289.94
296.11
October
296.11
313.74
November
313.74
315.57
December
315.57
319.12
Month
Open(₹)
Close(₹)
January
292.49
298.39
February
298.39
287.18
March
287.18
281.33
April
281.33
291.32
May
291.32
286.38
June
286.38
285.73
July
285.73
303.36
August
303.36
320.2
September
320.2
298.77
October
298.77
288.93
November
288.93
293.32
December
293.32
297.85
Month
Open(₹)
Close(₹)
January
226.78
238.32
February
238.32
248.66
March
248.66
263.15
April
263.15
266.06
May
266.06
262.35
June
262.35
263.53
July
263.53
270.24
August
270.24
268.9
September
268.9
266.82
October
266.82
284.65
November
284.65
280.53
December
280.53
292.49
Month
Open(₹)
Close(₹)
January
204.44
193.62
February
193.62
184.33
March
184.33
197.48
April
197.48
204.2
May
204.2
207.74
June
207.74
223.89
July
223.89
231.29
August
231.29
240.63
September
240.63
239.98
October
239.98
245.62
November
245.62
229.62
December
229.62
226.78
Month
Open(₹)
Close(₹)
January
196.56
204.94
February
204.94
204.85
March
204.85
202.81
April
202.81
199.78
May
199.78
204.79
June
204.79
205.73
July
205.73
212.81
August
212.81
201.12
September
201.12
204.35
October
204.35
208.84
November
208.84
208.26
December
208.26
204.44
Month
Open(₹)
Close(₹)
January
130.2
124.7
February
124.7
128.91
March
128.91
140.26
April
140.26
141.43
May
141.43
157.38
June
157.38
170.89
July
170.89
169.63
August
169.63
180.14
September
180.14
182.07
October
182.07
189.41
November
189.41
197.63
December
197.63
196.56
Month
Open(₹)
Close(₹)
January
122.84
121.99
February
121.99
115.2
March
115.2
112.98
April
112.98
117.81
May
117.81
118.58
June
118.58
116.96
July
116.96
112.54
August
112.54
109.62
September
109.62
115.17
October
115.17
125.6
November
125.6
124.74
December
124.74
130.2

What does ICICI Prudential Multicap Fund Direct Plan 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 ICICI Prudential Multicap Fund Direct Plan Growth as on 04.10.2022 is 15.16.

Check ICICI Prudential Multicap Fund Direct Plan 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.