IDBI Ultra Short Term Direct Bonus Net Asset Value

NAV details of IDBI Ultra Short Term Direct Bonus:

IDBI Ultra Short Term Direct Bonus NAV Today(01.10.2022)
₹2343.830.02 %
Exit Load
0%

How was the NAV for IDBI Ultra Short Term Direct 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.

IDBI Ultra Short Term Direct Bonus NAV calculation:

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

IDBI Ultra Short Term Direct Bonus NAV History

IDBI Ultra Short Term Direct Bonus NAV Monthly History

Month
Open(₹)
Close(₹)
January
2342.35
2343.83
February
2343.83
2343.83
March
2343.83
2343.83
April
2343.83
2343.83
May
2343.83
2343.83
June
2343.83
2343.83
July
2343.83
2343.83
August
2343.83
2343.83
September
2343.83
-
Month
Open(₹)
Close(₹)
January
2246.66
2253.78
February
2253.78
2261.21
March
2261.21
2266.15
April
2266.15
2272.28
May
2272.28
2280.26
June
2280.26
2287.13
July
2287.13
2293.88
August
2293.88
2302.08
September
2302.08
2321.03
October
2321.03
2327.62
November
2327.62
2335.36
December
2335.36
2342.35
Month
Open(₹)
Close(₹)
January
2129.07
2140.09
February
2140.09
2152.42
March
2152.42
2162.07
April
2162.07
2153.95
May
2153.95
2174.59
June
2174.59
2185.25
July
2185.25
2199.53
August
2199.53
2209.55
September
2209.55
2216.86
October
2216.86
2226.12
November
2226.12
2237.94
December
2237.94
2246.66
Month
Open(₹)
Close(₹)
January
1981.66
1993.4
February
1993.4
2004.55
March
2004.55
2021.38
April
2021.38
2033.34
May
2033.34
2011.29
June
2011.29
1965.03
July
1965.03
1979.72
August
1979.72
1988.88
September
1988.88
2091.14
October
2091.14
2105.16
November
2105.16
2118.16
December
2118.16
2129.07
Month
Open(₹)
Close(₹)
January
1842.19
1850.48
February
1850.48
1858.22
March
1858.22
1873.94
April
1873.94
1882.94
May
1882.94
1893.5
June
1893.5
1905.53
July
1905.53
1919.38
August
1919.38
1929.69
September
1929.69
1938.86
October
1938.86
1950.44
November
1950.44
1965.12
December
1965.12
1981.66
Month
Open(₹)
Close(₹)
January
1724.07
1735.59
February
1735.59
1741.67
March
1741.67
1751.65
April
1751.65
1759.7
May
1759.7
1770.67
June
1770.67
1781.14
July
1781.14
1793.92
August
1793.92
1805.15
September
1805.15
1813.17
October
1813.17
1827.01
November
1827.01
1834.82
December
1834.82
1842.19
Month
Open(₹)
Close(₹)
January
1585.31
1593.87
February
1593.87
1602.83
March
1602.83
1619.34
April
1619.34
1630.58
May
1630.58
1642.13
June
1642.13
1654.11
July
1654.11
1670.68
August
1670.68
1681.88
September
1681.88
1693.22
October
1693.22
1703.53
November
1703.53
1719.88
December
1719.88
1724.07
Month
Open(₹)
Close(₹)
January
1460.71
1470.61
February
1470.61
1479.1
March
1479.1
1492.05
April
1492.05
1501.63
May
1501.63
1513.87
June
1513.87
1524.24
July
1524.24
1535.14
August
1535.14
1545.31
September
1545.31
1557.75
October
1557.75
1566.5
November
1566.5
1575.64
December
1575.64
1585.31
Month
Open(₹)
Close(₹)
June
1388.87
1398.75
July
1398.75
1408.27
August
1408.27
1418.19
September
1418.19
1428.65
October
1428.65
1439.59
November
1439.59
1450.63
December
1450.63
1460.71

What does IDBI Ultra Short Term Direct 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 IDBI Ultra Short Term Direct Bonus as on 01.10.2022 is 7.14.

Check IDBI Ultra Short Term Direct 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.