Nippon India Low Duration Fund Direct Plan Payout Inc Dist cum Cap Wdrl Net Asset Value

NAV details of Nippon India Low Duration Fund Direct Plan Payout Inc Dist cum Cap Wdrl:

Nippon India Low Duration Fund Direct Plan Payout Inc Dist cum Cap Wdrl NAV Today(06.10.2022)
₹1761.250.07 %
Exit Load
0%

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

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

Nippon India Low Duration Fund Direct Plan Payout Inc Dist cum Cap Wdrl NAV History

Nippon India Low Duration Fund Direct Plan Payout Inc Dist cum Cap Wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
1706.7
1712.21
February
1712.21
1720.17
March
1720.17
1727.27
April
1727.27
1731.4
May
1731.4
1730.18
June
1730.18
1737.7
July
1737.7
1747.22
August
1747.22
1755.98
September
1755.98
1760.05
October
1760.05
-
Month
Open(₹)
Close(₹)
January
1628.9
1631.01
February
1631.01
1635.96
March
1635.96
1646.29
April
1646.29
1655.26
May
1655.26
1663.34
June
1663.34
1668.92
July
1668.92
1677.6
August
1677.6
1686.05
September
1686.05
1690.71
October
1690.71
1695.18
November
1695.18
1701.73
December
1701.73
1706.7
Month
Open(₹)
Close(₹)
January
1507.77
1518.77
February
1518.77
1530.52
March
1530.52
1538.7
April
1538.7
1534.82
May
1534.82
1557.46
June
1557.46
1574.57
July
1574.57
1585
August
1585
1594.45
September
1594.45
1601.69
October
1601.69
1612.01
November
1612.01
1622.93
December
1622.93
1628.9
Month
Open(₹)
Close(₹)
January
1404.96
1414.54
February
1414.54
1424.48
March
1424.48
1438.64
April
1438.64
1445.64
May
1445.64
1459.23
June
1459.23
1439.17
July
1439.17
1453.88
August
1453.88
1465.92
September
1465.92
1476.04
October
1476.04
1491.1
November
1491.1
1499.74
December
1499.74
1507.77
Month
Open(₹)
Close(₹)
January
1304.81
1310.06
February
1310.06
1317.07
March
1317.07
1328.57
April
1328.57
1332.13
May
1332.13
1338.26
June
1338.26
1348
July
1348
1358.62
August
1358.62
1366.65
September
1366.65
1372.15
October
1372.15
1381.25
November
1381.25
1392.4
December
1392.4
1404.96
Month
Open(₹)
Close(₹)
January
1218.65
1228.24
February
1228.24
1233.88
March
1233.88
1240.94
April
1240.94
1247.3
May
1247.3
1255.94
June
1255.94
1263.7
July
1263.7
1273.39
August
1273.39
1281.18
September
1281.18
1286.17
October
1286.17
1294.31
November
1294.31
1300.1
December
1300.1
1304.81
Month
Open(₹)
Close(₹)
January
1119.78
1125.7
February
1125.7
1132.74
March
1132.74
1144.55
April
1144.55
1152.6
May
1152.6
1160.89
June
1160.89
1169.17
July
1169.17
1179.86
August
1179.86
1188.1
September
1188.1
1196.08
October
1196.08
1203.93
November
1203.93
1215.47
December
1215.47
1218.65
Month
Open(₹)
Close(₹)
January
1028.84
1035.88
February
1035.88
1042.21
March
1042.21
1052.37
April
1052.37
1059.14
May
1059.14
1067.92
June
1067.92
1075.49
July
1075.49
1083.49
August
1083.49
1090.95
September
1090.95
1099.23
October
1099.23
1106.3
November
1106.3
1113.38
December
1113.38
1119.78
Month
Open(₹)
Close(₹)
January
1013.27
1020.26
February
1020.26
1027.07
March
1027.07
1036.51
April
1036.51
1044.86
May
1044.86
1053.44
June
1053.44
1061.53
July
1061.53
1069.23
August
1069.23
1077.12
September
1077.12
1006.58
October
1006.58
1014.2
November
1014.2
1022
December
1022
1028.84
Month
Open(₹)
Close(₹)
December
1004.51
1013.27

What does Nippon India Low Duration Fund Direct Plan 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 Low Duration Fund Direct Plan Payout Inc Dist cum Cap Wdrl as on 06.10.2022 is 7.28.

Check Nippon India Low Duration Fund Direct Plan 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.