LIC MF Liquid Fund-Direct Plan-Growth Option Net Asset Value

NAV details of LIC MF Liquid Fund-Direct Plan-Growth Option:

LIC MF Liquid Fund-Direct Plan-Growth Option NAV Today(29.09.2022)
₹3952.620.01 %
Exit Load
0.01%

How was the NAV for LIC MF Liquid 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.

LIC MF Liquid Fund-Direct Plan-Growth Option NAV calculation:

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

LIC MF Liquid Fund-Direct Plan-Growth Option NAV History

LIC MF Liquid Fund-Direct Plan-Growth Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
3832.98
3844.34
February
3844.34
3855
March
3855
3867.2
April
3867.2
3878.65
May
3878.65
3890.92
June
3890.92
3906.1
July
3906.1
3921.44
August
3921.44
3939.42
September
3939.42
-
Month
Open(₹)
Close(₹)
January
3707.08
3716.7
February
3716.7
3726.36
March
3726.36
3737.19
April
3737.19
3746.87
May
3746.87
3757.55
June
3757.55
3768.13
July
3768.13
3778.92
August
3778.92
3790.33
September
3790.33
3800.11
October
3800.11
3809.8
November
3809.8
3821.56
December
3821.56
3832.98
Month
Open(₹)
Close(₹)
January
3550.23
3565.48
February
3565.48
3581.09
March
3581.09
3604.33
April
3604.33
3618.65
May
3618.65
3634.33
June
3634.33
3646.98
July
3646.98
3656.77
August
3656.77
3667.65
September
3667.65
3677.47
October
3677.47
3687.82
November
3687.82
3697.37
December
3697.37
3707.08
Month
Open(₹)
Close(₹)
January
3329.12
3348.8
February
3348.8
3367.45
March
3367.45
3389.52
April
3389.52
3408.98
May
3408.98
3429.37
June
3429.37
3448.89
July
3448.89
3467.93
August
3467.93
3485.79
September
3485.79
3502.09
October
3502.09
3518.78
November
3518.78
3534.79
December
3534.79
3550.23
Month
Open(₹)
Close(₹)
January
3097.57
3114.86
February
3114.86
3130.86
March
3130.86
3152.14
April
3152.14
3170.02
May
3170.02
3188.63
June
3188.63
3208.6
July
3208.6
3228.71
August
3228.71
3248.34
September
3248.34
3267.01
October
3267.01
3287.38
November
3287.38
3308.08
December
3308.08
3329.12
Month
Open(₹)
Close(₹)
January
2901.47
2917.84
February
2917.84
2932.69
March
2932.69
2949.03
April
2949.03
2965.4
May
2965.4
2981.95
June
2981.95
2998.14
July
2998.14
3015.09
August
3015.09
3031.68
September
3031.68
3047.84
October
3047.84
3064.49
November
3064.49
3080.56
December
3080.56
3097.57
Month
Open(₹)
Close(₹)
January
2692.86
2710.04
February
2710.04
2726.81
March
2726.81
2746.95
April
2746.95
2766.05
May
2766.05
2784.64
June
2784.64
2802.36
July
2802.36
2819.86
August
2819.86
2836.64
September
2836.64
2852.32
October
2852.32
2869.32
November
2869.32
2885.57
December
2885.57
2901.47
Month
Open(₹)
Close(₹)
January
2483.31
2501.14
February
2501.14
2517.36
March
2517.36
2535.87
April
2535.87
2554.04
May
2554.04
2572.9
June
2572.9
2590.3
July
2590.3
2607.35
August
2607.35
2625.15
September
2625.15
2641.75
October
2641.75
2658.99
November
2658.99
2675.54
December
2675.54
2692.86
Month
Open(₹)
Close(₹)
January
2277.25
2293.07
February
2293.07
2308.73
March
2308.73
2327.42
April
2327.42
2344.97
May
2344.97
2362.4
June
2362.4
2378.94
July
2378.94
2396.1
August
2396.1
2413.31
September
2413.31
2430.5
October
2430.5
2447.84
November
2447.84
2465.69
December
2465.69
2483.31
Month
Open(₹)
Close(₹)
January
2085.33
2099.94
February
2099.94
2113.16
March
2113.16
2128.83
April
2128.83
2143.74
May
2143.74
2157.9
June
2157.9
2172.46
July
2172.46
2184.07
August
2184.07
2204.13
September
2204.13
2224.3
October
2224.3
2243.16
November
2243.16
2259.97
December
2259.97
2277.25

What does LIC MF Liquid 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 LIC MF Liquid Fund-Direct Plan-Growth Option as on 29.09.2022 is 6.79.

Check LIC MF Liquid 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.