Nippon India Income Fund - Direct Plan - Growth Plan Net Asset Value

NAV details of Nippon India Income Fund - Direct Plan - Growth Plan:

Nippon India Income Fund - Direct Plan - Growth Plan NAV Today(30.09.2022)
₹79.60.03 %
Exit Load
0.25%

How was the NAV for Nippon India Income Fund - Direct Plan - Growth Plan 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 Income Fund - Direct Plan - Growth Plan NAV calculation:

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

Nippon India Income Fund - Direct Plan - Growth Plan NAV History

Nippon India Income Fund - Direct Plan - Growth Plan NAV Monthly History

Month
Open(₹)
Close(₹)
January
78.13
77.99
February
77.99
78.13
March
78.13
78.41
April
78.41
78.3
May
78.3
77.83
June
77.83
77.66
July
77.66
78.49
August
78.49
79.64
September
79.64
-
Month
Open(₹)
Close(₹)
January
76.29
75.56
February
75.56
74.54
March
74.54
75.46
April
75.46
76.2
May
76.2
76.48
June
76.48
76.47
July
76.47
76.74
August
76.74
77.51
September
77.51
78.07
October
78.07
78.12
November
78.12
78.49
December
78.49
78.13
Month
Open(₹)
Close(₹)
January
68.66
68.62
February
68.62
70.32
March
70.32
70.9
April
70.9
72.14
May
72.14
72.89
June
72.89
74.18
July
74.18
74.61
August
74.61
74.37
September
74.37
74.3
October
74.3
75.55
November
75.55
75.98
December
75.98
76.29
Month
Open(₹)
Close(₹)
January
60.78
60.72
February
60.72
60.99
March
60.99
62.49
April
62.49
62.36
May
62.36
64.32
June
64.32
65.25
July
65.25
66.88
August
66.88
67.2
September
67.2
67.53
October
67.53
67.91
November
67.91
68.31
December
68.31
68.66
Month
Open(₹)
Close(₹)
January
57
56.19
February
56.19
56.07
March
56.07
57.39
April
57.39
56.92
May
56.92
57.08
June
57.08
57.24
July
57.24
58
August
58
57.89
September
57.89
58.28
October
58.28
58.93
November
58.93
59.8
December
59.8
60.78
Month
Open(₹)
Close(₹)
January
55.14
55.76
February
55.76
54.26
March
54.26
55.21
April
55.21
55.11
May
55.11
56.22
June
56.22
57.08
July
57.08
57.56
August
57.56
57.92
September
57.92
57.67
October
57.67
57.56
November
57.56
57.52
December
57.52
57
Month
Open(₹)
Close(₹)
January
48.09
48.09
February
48.09
48.19
March
48.19
49.34
April
49.34
49.93
May
49.93
50.12
June
50.12
50.74
July
50.74
52.43
August
52.43
53.08
September
53.08
53.78
October
53.78
54.1
November
54.1
56.73
December
56.73
55.14
Month
Open(₹)
Close(₹)
January
45.2
46.3
February
46.3
46.41
March
46.41
46.43
April
46.43
46.32
May
46.32
46.46
June
46.46
46.04
July
46.04
46.61
August
46.61
47.13
September
47.13
48.09
October
48.09
48.18
November
48.18
48.02
December
48.02
48.09
Month
Open(₹)
Close(₹)
January
39.16
39.49
February
39.49
39.49
March
39.49
40.02
April
40.02
40.47
May
40.47
41.18
June
41.18
41.33
July
41.33
41.55
August
41.55
41.68
September
41.68
42.23
October
42.23
43.44
November
43.44
44.44
December
44.44
45.2
Month
Open(₹)
Close(₹)
January
37.88
38.54
February
38.54
38.75
March
38.75
38.88
April
38.88
39.88
May
39.88
41.07
June
41.07
40.59
July
40.59
39.1
August
39.1
38.24
September
38.24
38.65
October
38.65
39.25
November
39.25
39.1
December
39.1
39.16

What does Nippon India Income Fund - Direct Plan - Growth Plan’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 Income Fund - Direct Plan - Growth Plan as on 30.09.2022 is 7.93.

Check Nippon India Income Fund - Direct Plan - Growth Plan 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.