Nippon India Low Duration Fund Direct Plan Growth Plan Net Asset Value

NAV details of Nippon India Low Duration Fund Direct Plan Growth Plan:

Nippon India Low Duration Fund Direct Plan Growth Plan NAV Today(06.10.2022)
₹3232.320.04 %
Exit Load
0%

How was the NAV for Nippon India Low Duration 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 Low Duration Fund Direct Plan Growth Plan NAV calculation:

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

Nippon India Low Duration Fund Direct Plan Growth Plan NAV History

Nippon India Low Duration Fund Direct Plan Growth Plan NAV Monthly History

Month
Open(₹)
Close(₹)
January
3131.05
3141.18
February
3141.18
3155.78
March
3155.78
3168.79
April
3168.79
3176.37
May
3176.37
3174.13
June
3174.13
3187.93
July
3187.93
3205.41
August
3205.41
3221.46
September
3221.46
3228.94
October
3228.94
-
Month
Open(₹)
Close(₹)
January
2988.33
2992.2
February
2992.2
3001.28
March
3001.28
3020.22
April
3020.22
3036.68
May
3036.68
3051.5
June
3051.5
3061.75
July
3061.75
3077.67
August
3077.67
3093.18
September
3093.18
3101.73
October
3101.73
3109.93
November
3109.93
3121.94
December
3121.94
3131.05
Month
Open(₹)
Close(₹)
January
2766.11
2786.31
February
2786.31
2807.85
March
2807.85
2822.87
April
2822.87
2815.74
May
2815.74
2857.28
June
2857.28
2888.66
July
2888.66
2907.79
August
2907.79
2925.13
September
2925.13
2938.42
October
2938.42
2957.35
November
2957.35
2977.38
December
2977.38
2988.33
Month
Open(₹)
Close(₹)
January
2577.4
2594.98
February
2594.98
2613.22
March
2613.22
2639.21
April
2639.21
2652.04
May
2652.04
2676.97
June
2676.97
2640.18
July
2640.18
2667.27
August
2667.27
2689.35
September
2689.35
2707.9
October
2707.9
2735.53
November
2735.53
2751.38
December
2751.38
2766.11
Month
Open(₹)
Close(₹)
January
2393.7
2403.32
February
2403.32
2416.19
March
2416.19
2437.29
April
2437.29
2443.82
May
2443.82
2455.06
June
2455.06
2472.92
July
2472.92
2492.41
August
2492.41
2507.14
September
2507.14
2517.22
October
2517.22
2533.92
November
2533.92
2554.37
December
2554.37
2577.4
Month
Open(₹)
Close(₹)
January
2235.64
2253.22
February
2253.22
2263.58
March
2263.58
2276.52
April
2276.52
2288.19
May
2288.19
2304.04
June
2304.04
2318.27
July
2318.27
2336.05
August
2336.05
2350.34
September
2350.34
2359.5
October
2359.5
2374.44
November
2374.44
2385.06
December
2385.06
2393.7
Month
Open(₹)
Close(₹)
January
2054.25
2065.12
February
2065.12
2078.04
March
2078.04
2099.7
April
2099.7
2114.47
May
2114.47
2129.67
June
2129.67
2144.86
July
2144.86
2164.48
August
2164.48
2179.59
September
2179.59
2194.23
October
2194.23
2208.62
November
2208.62
2229.8
December
2229.8
2235.64
Month
Open(₹)
Close(₹)
January
1887.42
1900.33
February
1900.33
1911.95
March
1911.95
1930.58
April
1930.58
1943
May
1943
1959.11
June
1959.11
1973
July
1973
1987.69
August
1987.69
2001.36
September
2001.36
2016.56
October
2016.56
2029.53
November
2029.53
2042.52
December
2042.52
2054.25
Month
Open(₹)
Close(₹)
January
1724.17
1736.05
February
1736.05
1747.64
March
1747.64
1763.7
April
1763.7
1777.92
May
1777.92
1792.5
June
1792.5
1806.28
July
1806.28
1819.38
August
1819.38
1832.81
September
1832.81
1846.59
October
1846.59
1860.56
November
1860.56
1874.87
December
1874.87
1887.42
Month
Open(₹)
Close(₹)
January
1570.39
1581.97
February
1581.97
1592.27
March
1592.27
1603.57
April
1603.57
1618.46
May
1618.46
1630.63
June
1630.63
1641.11
July
1641.11
1647.26
August
1647.26
1659.16
September
1659.16
1681.15
October
1681.15
1697.62
November
1697.62
1709.26
December
1709.26
1724.17

What does Nippon India Low Duration 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 Low Duration Fund Direct Plan Growth Plan as on 06.10.2022 is 7.68.

Check Nippon India Low Duration 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.