Kotak Bond Direct Growth Net Asset Value

NAV details of Kotak Bond Direct Growth:

Kotak Bond Direct Growth NAV Today(04.10.2022)
₹68.550.17 %
Exit Load
0%

How was the NAV for Kotak Bond 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.

Kotak Bond Direct Growth NAV calculation:

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

Kotak Bond Direct Growth NAV History

Kotak Bond Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
67.87
67.4
February
67.4
68.06
March
68.06
68.21
April
68.21
67.51
May
67.51
67.03
June
67.03
67.07
July
67.07
67.94
August
67.94
68.66
September
68.66
68.67
October
68.67
-
Month
Open(₹)
Close(₹)
January
65.6
65.24
February
65.24
64.32
March
64.32
64.76
April
64.76
65.13
May
65.13
65.61
June
65.61
65.86
July
65.86
66.01
August
66.01
67.02
September
67.02
67.53
October
67.53
67.35
November
67.35
68
December
68
67.87
Month
Open(₹)
Close(₹)
January
57.95
58.02
February
58.02
59.54
March
59.54
59.97
April
59.97
60.32
May
60.32
61.77
June
61.77
63.48
July
63.48
63.41
August
63.41
63.26
September
63.26
63.22
October
63.22
64.23
November
64.23
64.83
December
64.83
65.6
Month
Open(₹)
Close(₹)
January
51.76
51.72
February
51.72
52.13
March
52.13
53.38
April
53.38
53.4
May
53.4
54.51
June
54.51
55.13
July
55.13
56.51
August
56.51
56.73
September
56.73
56.85
October
56.85
57.18
November
57.18
57.53
December
57.53
57.95
Month
Open(₹)
Close(₹)
January
48.89
48.54
February
48.54
48.37
March
48.37
49.49
April
49.49
49.1
May
49.1
49.23
June
49.23
49.39
July
49.39
49.88
August
49.88
49.95
September
49.95
50.01
October
50.01
50.43
November
50.43
51.17
December
51.17
51.76
Month
Open(₹)
Close(₹)
January
48.01
48.62
February
48.62
46.89
March
46.89
47.76
April
47.76
47.67
May
47.67
48.69
June
48.69
49.46
July
49.46
49.76
August
49.76
49.89
September
49.89
49.51
October
49.51
49.52
November
49.52
49.3
December
49.3
48.89
Month
Open(₹)
Close(₹)
January
41.71
41.53
February
41.53
41.74
March
41.74
43.02
April
43.02
43.66
May
43.66
43.77
June
43.77
44.33
July
44.33
45.82
August
45.82
46.44
September
46.44
47.06
October
47.06
47.3
November
47.3
49.43
December
49.43
48.01
Month
Open(₹)
Close(₹)
January
39.43
40.39
February
40.39
40.5
March
40.5
40.52
April
40.52
40.41
May
40.41
40.53
June
40.53
40.18
July
40.18
40.69
August
40.69
41.12
September
41.12
41.93
October
41.93
42.01
November
42.01
41.79
December
41.79
41.71
Month
Open(₹)
Close(₹)
January
34.05
34.23
February
34.23
34.31
March
34.31
34.71
April
34.71
35.12
May
35.12
36.02
June
36.02
36.26
July
36.26
36.44
August
36.44
36.54
September
36.54
37.01
October
37.01
38.04
November
38.04
38.88
December
38.88
39.43
Month
Open(₹)
Close(₹)
January
33.32
33.66
February
33.66
33.77
March
33.77
33.93
April
33.93
34.73
May
34.73
35.69
June
35.69
35.41
July
35.41
33.96
August
33.96
33.25
September
33.25
33.51
October
33.51
34.09
November
34.09
34.01
December
34.01
34.05

What does Kotak Bond 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 Kotak Bond Direct Growth as on 04.10.2022 is 7.68.

Check Kotak Bond 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.