Kotak Low Duration Fund- Direct Plan- Growth Option Net Asset Value

NAV details of Kotak Low Duration Fund- Direct Plan- Growth Option:

Kotak Low Duration Fund- Direct Plan- Growth Option NAV Today(03.10.2022)
₹2957.160.09 %
Exit Load
0%

How was the NAV for Kotak Low Duration Fund- Direct Plan- Growth Option 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 Low Duration Fund- Direct Plan- Growth Option NAV calculation:

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

Kotak Low Duration Fund- Direct Plan- Growth Option NAV History

Kotak Low Duration Fund- Direct Plan- Growth Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
2870.92
2880.14
February
2880.14
2888.49
March
2888.49
2901.62
April
2901.62
2907.88
May
2907.88
2901.51
June
2901.51
2909.69
July
2909.69
2928.6
August
2928.6
2946.95
September
2946.95
2957.16
October
2957.16
-
Month
Open(₹)
Close(₹)
January
2754.3
2755.77
February
2755.77
2761.88
March
2761.88
2773.63
April
2773.63
2788.16
May
2788.16
2800.84
June
2800.84
2809.41
July
2809.41
2822.78
August
2822.78
2839.42
September
2839.42
2848.05
October
2848.05
2855.06
November
2855.06
2863.7
December
2863.7
2870.92
Month
Open(₹)
Close(₹)
January
2533.53
2551.08
February
2551.08
2568.7
March
2568.7
2581.24
April
2581.24
2574.21
May
2574.21
2624.49
June
2624.49
2674.02
July
2674.02
2680.46
August
2680.46
2696.1
September
2696.1
2708.21
October
2708.21
2728
November
2728
2745.03
December
2745.03
2754.3
Month
Open(₹)
Close(₹)
January
2320.88
2337.49
February
2337.49
2353.01
March
2353.01
2375.79
April
2375.79
2391.21
May
2391.21
2413.22
June
2413.22
2414.28
July
2414.28
2438.88
August
2438.88
2459.25
September
2459.25
2477.45
October
2477.45
2503.76
November
2503.76
2520.41
December
2520.41
2533.53
Month
Open(₹)
Close(₹)
January
2147.6
2156.34
February
2156.34
2167.96
March
2167.96
2189.47
April
2189.47
2196.52
May
2196.52
2207.83
June
2207.83
2224.85
July
2224.85
2243.82
August
2243.82
2258.5
September
2258.5
2267.23
October
2267.23
2280.93
November
2280.93
2299.92
December
2299.92
2320.88
Month
Open(₹)
Close(₹)
January
1987.61
2006.99
February
2006.99
2017.33
March
2017.33
2030.58
April
2030.58
2043.58
May
2043.58
2058.07
June
2058.07
2071.98
July
2071.98
2089.66
August
2089.66
2103
September
2103
2111.37
October
2111.37
2128.71
November
2128.71
2138.69
December
2138.69
2147.6
Month
Open(₹)
Close(₹)
January
1811.55
1821.88
February
1821.88
1832.97
March
1832.97
1851.83
April
1851.83
1865.76
May
1865.76
1880.44
June
1880.44
1895.42
July
1895.42
1914.85
August
1914.85
1930.16
September
1930.16
1947.49
October
1947.49
1962.58
November
1962.58
1982.93
December
1982.93
1987.61
Month
Open(₹)
Close(₹)
January
1646.19
1665.31
February
1665.31
1674.68
March
1674.68
1688.11
April
1688.11
1699.73
May
1699.73
1714.48
June
1714.48
1728.13
July
1728.13
1743.1
August
1743.1
1756.26
September
1756.26
1770.58
October
1770.58
1783.38
November
1783.38
1798.53
December
1798.53
1811.55
Month
Open(₹)
Close(₹)
January
1498.63
1503.99
February
1503.99
1510.74
March
1510.74
1529.8
April
1529.8
1539.76
May
1539.76
1555.19
June
1555.19
1565.47
July
1565.47
1575.41
August
1575.41
1586.31
September
1586.31
1598.46
October
1598.46
1616.89
November
1616.89
1632.89
December
1632.89
1646.19
Month
Open(₹)
Close(₹)
January
1395.15
1403.54
February
1403.54
1408.56
March
1408.56
1423.09
April
1423.09
1438.04
May
1438.04
1449.84
June
1449.84
1453.56
July
1453.56
1442.77
August
1442.77
1453.9
September
1453.9
1467.44
October
1467.44
1482.36
November
1482.36
1486.65
December
1486.65
1498.63

What does Kotak Low Duration Fund- Direct Plan- Growth Option’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 Low Duration Fund- Direct Plan- Growth Option as on 03.10.2022 is 8.01.

Check Kotak Low Duration Fund- Direct Plan- Growth Option 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.