Nippon India Banking & Financial Services Fund Direct Plan - Bonus Net Asset Value

NAV details of Nippon India Banking & Financial Services Fund Direct Plan - Bonus:

Nippon India Banking & Financial Services Fund Direct Plan - Bonus NAV Today(01.10.2022)
₹396.420.11 %
Exit Load
1%

How was the NAV for Nippon India Banking & Financial Services Fund Direct Plan - Bonus 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.

Nippon India Banking & Financial Services Fund Direct Plan - Bonus NAV calculation:

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

Nippon India Banking & Financial Services Fund Direct Plan - Bonus NAV History

Nippon India Banking & Financial Services Fund Direct Plan - Bonus NAV Monthly History

Month
Open(₹)
Close(₹)
January
361.1
392.54
February
392.54
366.87
March
366.87
384.11
April
384.11
378.2
May
378.2
364.15
June
364.15
346.49
July
346.49
392.56
August
392.56
404.99
September
404.99
-
Month
Open(₹)
Close(₹)
January
277.92
296.19
February
296.19
324.38
March
324.38
311.61
April
311.61
306.98
May
306.98
344.96
June
344.96
349.53
July
349.53
359.29
August
359.29
374.19
September
374.19
378.13
October
378.13
395.78
November
395.78
367.83
December
367.83
361.1
Month
Open(₹)
Close(₹)
January
307.42
299.36
February
299.36
280.25
March
280.25
165.75
April
165.75
189.78
May
189.78
177.25
June
177.25
201.93
July
201.93
201.37
August
201.37
220.81
September
220.81
209.73
October
209.73
216.3
November
216.3
264.13
December
264.13
277.92
Month
Open(₹)
Close(₹)
January
277.51
267.58
February
267.58
266.06
March
266.06
298.52
April
298.52
291.46
May
291.46
311.89
June
311.89
311.19
July
311.19
276.8
August
276.8
266.34
September
266.34
271.55
October
271.55
287.49
November
287.49
308.08
December
308.08
307.42
Month
Open(₹)
Close(₹)
January
275.75
285.12
February
285.12
267.35
March
267.35
262.74
April
262.74
278.35
May
278.35
278.71
June
278.71
270.6
July
270.6
288.04
August
288.04
299.95
September
299.95
256.43
October
256.43
258.02
November
258.02
265.46
December
265.46
277.51
Month
Open(₹)
Close(₹)
January
190.21
210.34
February
210.34
219.36
March
219.36
230.05
April
230.05
243.39
May
243.39
247.87
June
247.87
253.65
July
253.65
272.05
August
272.05
271.53
September
271.53
262.01
October
262.01
274.24
November
274.24
267.58
December
267.58
275.75
Month
Open(₹)
Close(₹)
January
171.02
154.81
February
154.81
145.23
March
145.23
161.28
April
161.28
167.9
May
167.9
174.26
June
174.26
183.15
July
183.15
192.98
August
192.98
205.96
September
205.96
204.25
October
204.25
206.28
November
206.28
193.24
December
193.24
190.21
Month
Open(₹)
Close(₹)
January
179.12
193.32
February
193.32
187.22
March
187.22
181.29
April
181.29
178.13
May
178.13
182.01
June
182.01
182.41
July
182.41
186.39
August
186.39
165.3
September
165.3
173.17
October
173.17
174.18
November
174.18
174.15
December
174.15
171.02
Month
Open(₹)
Close(₹)
January
108.21
97.76
February
97.76
100.34
March
100.34
117.17
April
117.17
121.92
May
121.92
144.43
June
144.43
150.62
July
150.62
148.08
August
148.08
154.48
September
154.48
151.73
October
151.73
165.42
November
165.42
175.52
December
175.52
179.12
Month
Open(₹)
Close(₹)
January
122.05
121.32
February
121.32
109.71
March
109.71
106.49
April
106.49
113.38
May
113.38
114.3
June
114.3
108.99
July
108.99
91.54
August
91.54
81.64
September
81.64
88.99
October
88.99
105.89
November
105.89
102.41
December
102.41
108.21

What does Nippon India Banking & Financial Services Fund Direct Plan - Bonus’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 Nippon India Banking & Financial Services Fund Direct Plan - Bonus as on 01.10.2022 is 12.86.

Check Nippon India Banking & Financial Services Fund Direct Plan - Bonus 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.