Kotak Floating Rate Fund Direct Growth Net Asset Value

NAV details of Kotak Floating Rate Fund Direct Growth:

Kotak Floating Rate Fund Direct Growth NAV Today(29.09.2022)
₹1240.370.01 %
Exit Load
0%

How was the NAV for Kotak Floating Rate 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.

Kotak Floating Rate Fund Direct Growth NAV calculation:

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

Kotak Floating Rate Fund Direct Growth NAV History

Kotak Floating Rate Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
1215.08
1216.5
February
1216.5
1222.62
March
1222.62
1227.33
April
1227.33
1227.74
May
1227.74
1218.25
June
1218.25
1221.63
July
1221.63
1231.04
August
1231.04
1240.24
September
1240.24
-
Month
Open(₹)
Close(₹)
January
1162.31
1154.8
February
1154.8
1149.87
March
1149.87
1157.05
April
1157.05
1170
May
1170
1181.35
June
1181.35
1182.42
July
1182.42
1191.83
August
1191.83
1203.07
September
1203.07
1206.7
October
1206.7
1208.58
November
1208.58
1212.9
December
1212.9
1215.08
Month
Open(₹)
Close(₹)
January
1040.44
1045.41
February
1045.41
1059.24
March
1059.24
1065.28
April
1065.28
1059.67
May
1059.67
1081.44
June
1081.44
1120.39
July
1120.39
1123.68
August
1123.68
1127.23
September
1127.23
1125.95
October
1125.95
1143.98
November
1143.98
1157.73
December
1157.73
1162.31
Month
Open(₹)
Close(₹)
June
1004.79
1009.6
July
1009.6
1016.53
August
1016.53
1022.42
September
1022.42
1028.5
October
1028.5
1031.72
November
1031.72
1035.91
December
1035.91
1040.44

What does Kotak Floating Rate 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 Kotak Floating Rate Fund Direct Growth as on 29.09.2022 is 6.59.

Check Kotak Floating Rate Fund Direct Growth to get a detailed description of the total returns.

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.