Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl Net Asset Value

NAV details of Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl:

Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl NAV Today(26.09.2022)
₹1004.260.02 %
Exit Load
0.01%

How was the NAV for Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl 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 Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl NAV calculation:

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

Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl NAV History

Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
1004.9
1007.94
February
1007.94
1010.85
March
1010.85
1004.98
April
1004.98
1008.05
May
1008.05
1011.1
June
1011.1
1005.73
July
1005.73
1009.71
August
1009.71
1014.41
September
1014.41
-
Month
Open(₹)
Close(₹)
January
1004.86
1007.24
February
1007.24
1009.88
March
1009.88
1005.31
April
1005.31
1007.89
May
1007.89
1010.69
June
1010.69
1004.87
July
1004.87
1007.73
August
1007.73
1010.72
September
1010.72
1004.61
October
1004.61
1007.17
November
1007.17
1010.41
December
1010.41
1004.9
Month
Open(₹)
Close(₹)
January
1007.55
1011.75
February
1011.75
1016.05
March
1016.05
1008.3
April
1008.3
1013.05
May
1013.05
1017.58
June
1017.58
1005.4
July
1005.4
1008.03
August
1008.03
1011.01
September
1011.01
1004.91
October
1004.91
1007.71
November
1007.71
1010.29
December
1010.29
1004.86
Month
Open(₹)
Close(₹)
January
1008.85
1014.85
February
1014.85
1020.52
March
1020.52
1009.31
April
1009.31
1015.28
May
1015.28
1021.59
June
1021.59
1008.39
July
1008.39
1014.32
August
1014.32
1019.2
September
1019.2
1007.69
October
1007.69
1012.68
November
1012.68
1017.17
December
1017.17
1007.55
Month
Open(₹)
Close(₹)
January
1008.07
1013.67
February
1013.67
1018.87
March
1018.87
1009.31
April
1009.31
1015.03
May
1015.03
1020.89
June
1020.89
1008.77
July
1008.77
1015.09
August
1015.09
1021.23
September
1021.23
1008.63
October
1008.63
1015.1
November
1015.1
1021.63
December
1021.63
1008.85
Month
Open(₹)
Close(₹)
January
1008.07
1013.71
February
1013.71
1018.88
March
1018.88
1007.94
April
1007.94
1013.61
May
1013.61
1019.23
June
1019.23
1007.96
July
1007.96
1013.66
August
1013.66
1019.23
September
1019.23
1007.85
October
1007.85
1013.33
November
1013.33
1018.63
December
1018.63
1008.07
Month
Open(₹)
Close(₹)
January
1008.24
1014.63
February
1014.63
1020.8
March
1020.8
1009.17
April
1009.17
1016.24
May
1016.24
1023.04
June
1023.04
1008.3
July
1008.3
1014.62
August
1014.62
1020.7
September
1020.7
1007.93
October
1007.93
1014.01
November
1014.01
1019.8
December
1019.8
1008.07
Month
Open(₹)
Close(₹)
January
1009.16
1016.43
February
1016.43
1023.01
March
1023.01
1009.37
April
1009.37
1016.64
May
1016.64
1024.16
June
1024.16
1008.72
July
1008.72
1015.38
August
1015.38
1022.29
September
1022.29
1008.13
October
1008.13
1014.71
November
1014.71
1020.97
December
1020.97
1008.24
Month
Open(₹)
Close(₹)
January
1009.33
1016.68
February
1016.68
1023.42
March
1023.42
1010.08
April
1010.08
1017.69
May
1017.69
1025.41
June
1025.41
1009.02
July
1009.02
1016.31
August
1016.31
1023.7
September
1023.7
1009.1
October
1009.1
1016.33
November
1016.33
1023.74
December
1023.74
1009.16
Month
Open(₹)
Close(₹)
January
1005.44
1012.61
February
1012.61
1019.19
March
1019.19
1008.94
April
1008.94
1016.39
May
1016.39
1023.48
June
1023.48
1008.22
July
1008.22
1012.62
August
1012.62
1022.09
September
1022.09
1009.64
October
1009.64
1018.34
November
1018.34
1026.2
December
1026.2
1009.33

What does Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl’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 Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl as on 26.09.2022 is 5.28.

Check Nippon India Liquid Fund Direct Plan Quarterly Payout Inc Dist cum Cap Wdrl 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.