NAV details of Kotak Multicap Fund Direct Growth:
Kotak Multicap Fund Direct Growth NAV Today(25.09.2022)
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 Multicap Fund Direct Growth NAV calculation:
NAV: (Assets - Liabilities)/ Total Number of Outstanding Units
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.
|Particulars||Fund A||Fund B|
|NAV||Rs 10||Rs 100|
|Units bought (with Rs 10K investment)||1000 units||100 units|
|NAV (increases by 50%)||Rs 15||Rs 150|
|Returs||Rs 15,000||Rs 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 Multicap Fund Direct Growth as on 25.09.2022 is 4.75.
Check Kotak Multicap Fund Direct Growth to get a detailed description of the total returns.
There are various factors that affect the NAV of a fund:
We have explained each of these points in the paragraph above.