IIFL Liquid Fund Direct Growth Net Asset Value

NAV details of IIFL Liquid Fund Direct Growth:

IIFL Liquid Fund Direct Growth NAV Today(25.09.2022)
₹1676.30.01 %
Exit Load
0.01%

How was the NAV for IIFL Liquid Fund Direct 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.

IIFL Liquid Fund Direct Growth NAV calculation:

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

IIFL Liquid Fund Direct Growth NAV History

IIFL Liquid Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
1627.18
1631.87
February
1631.87
1636.32
March
1636.32
1641.08
April
1641.08
1646.05
May
1646.05
1650.97
June
1650.97
1657.35
July
1657.35
1663.89
August
1663.89
1671.45
September
1671.45
-
Month
Open(₹)
Close(₹)
January
1579.18
1582.91
February
1582.91
1586.16
March
1586.16
1589.97
April
1589.97
1593.79
May
1593.79
1597.85
June
1597.85
1601.85
July
1601.85
1605.9
August
1605.9
1610.04
September
1610.04
1614.08
October
1614.08
1618.39
November
1618.39
1622.71
December
1622.71
1627.18
Month
Open(₹)
Close(₹)
January
1526.11
1531.92
February
1531.92
1538.02
March
1538.02
1543.59
April
1543.59
1547.98
May
1547.98
1552.79
June
1552.79
1557.03
July
1557.03
1560.52
August
1560.52
1564.8
September
1564.8
1568.43
October
1568.43
1572.23
November
1572.23
1575.67
December
1575.67
1579.18
Month
Open(₹)
Close(₹)
January
1440.18
1447.85
February
1447.85
1455.1
March
1455.1
1463.72
April
1463.72
1471.41
May
1471.41
1479.01
June
1479.01
1486.67
July
1486.67
1494.43
August
1494.43
1500.92
September
1500.92
1507.81
October
1507.81
1513.99
November
1513.99
1520.15
December
1520.15
1526.11
Month
Open(₹)
Close(₹)
January
1347.25
1354.29
February
1354.29
1360.8
March
1360.8
1368.5
April
1368.5
1376.85
May
1376.85
1384.2
June
1384.2
1392.28
July
1392.28
1400.61
August
1400.61
1408.43
September
1408.43
1416.51
October
1416.51
1424.77
November
1424.77
1431.81
December
1431.81
1440.18
Month
Open(₹)
Close(₹)
January
1268.26
1274.8
February
1274.8
1280.77
March
1280.77
1287.15
April
1287.15
1293.64
May
1293.64
1300.36
June
1300.36
1306.76
July
1306.76
1313.84
August
1313.84
1320.61
September
1320.61
1326.71
October
1326.71
1333.87
November
1333.87
1340.21
December
1340.21
1347.25
Month
Open(₹)
Close(₹)
January
1182.4
1189.65
February
1189.65
1196.73
March
1196.73
1204.87
April
1204.87
1212.57
May
1212.57
1220.17
June
1220.17
1227.59
July
1227.59
1234.89
August
1234.89
1241.71
September
1241.71
1248.15
October
1248.15
1255.08
November
1255.08
1261.64
December
1261.64
1268.26
Month
Open(₹)
Close(₹)
January
1096.48
1103.89
February
1103.89
1110.52
March
1110.52
1117.7
April
1117.7
1124.76
May
1124.76
1132.67
June
1132.67
1139.9
July
1139.9
1146.99
August
1146.99
1154.43
September
1154.43
1161.56
October
1161.56
1168.58
November
1168.58
1175.28
December
1175.28
1182.4
Month
Open(₹)
Close(₹)
January
1010.86
1017.36
February
1017.36
1023.54
March
1023.54
1031.16
April
1031.16
1038.27
May
1038.27
1045.51
June
1045.51
1052.51
July
1052.51
1059.83
August
1059.83
1067.19
September
1067.19
1074.46
October
1074.46
1081.75
November
1081.75
1089.12
December
1089.12
1096.48
Month
Open(₹)
Close(₹)
December
1004.09
1010.86

What does IIFL Liquid Fund Direct 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 IIFL Liquid Fund Direct Growth as on 25.09.2022 is 6.

Check IIFL Liquid Fund Direct 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.