Nippon India Money Market Fund Direct Plan Bonus Plan Net Asset Value

NAV details of Nippon India Money Market Fund Direct Plan Bonus Plan:

Nippon India Money Market Fund Direct Plan Bonus Plan NAV Today(05.10.2022)
₹2014.070.05 %
Exit Load
0%

How was the NAV for Nippon India Money Market Fund Direct Plan Bonus 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 Money Market Fund Direct Plan Bonus Plan NAV calculation:

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

Nippon India Money Market Fund Direct Plan Bonus Plan NAV History

Nippon India Money Market Fund Direct Plan Bonus Plan NAV Monthly History

Month
Open(₹)
Close(₹)
January
1948.41
1955.16
February
1955.16
1961.78
March
1961.78
1970.21
April
1970.21
1976.16
May
1976.16
1979.36
June
1979.36
1988.03
July
1988.03
1997.24
August
1997.24
2007.09
September
2007.09
2014.07
October
2014.07
-
Month
Open(₹)
Close(₹)
January
1875.62
1880.23
February
1880.23
1886.38
March
1886.38
1893.87
April
1893.87
1900.16
May
1900.16
1905.97
June
1905.97
1912.03
July
1912.03
1918.46
August
1918.46
1925.69
September
1925.69
1930.48
October
1930.48
1935.16
November
1935.16
1942.31
December
1942.31
1948.41
Month
Open(₹)
Close(₹)
January
1768.49
1776.75
February
1776.75
1785.22
March
1785.22
1795.03
April
1795.03
1806.6
May
1806.6
1824.65
June
1824.65
1834.79
July
1834.79
1842.81
August
1842.81
1849.9
September
1849.9
1855.9
October
1855.9
1863.21
November
1863.21
1870.11
December
1870.11
1875.62
Month
Open(₹)
Close(₹)
January
1634.76
1646.19
February
1646.19
1655.66
March
1655.66
1668.94
April
1668.94
1677.8
May
1677.8
1692.66
June
1692.66
1702.77
July
1702.77
1718.27
August
1718.27
1729.03
September
1729.03
1739.65
October
1739.65
1751.49
November
1751.49
1760.02
December
1760.02
1768.49
Month
Open(₹)
Close(₹)
January
1513.05
1521.38
February
1521.38
1529.13
March
1529.13
1539.55
April
1539.55
1548.24
May
1548.24
1556.96
June
1556.96
1568.04
July
1568.04
1579.11
August
1579.11
1589.08
September
1589.08
1598.23
October
1598.23
1609.17
November
1609.17
1620.65
December
1620.65
1634.76
Month
Open(₹)
Close(₹)
January
1418.23
1426.1
February
1426.1
1433.29
March
1433.29
1441.35
April
1441.35
1449.34
May
1449.34
1457.33
June
1457.33
1465.11
July
1465.11
1473.29
August
1473.29
1481.27
September
1481.27
1489.04
October
1489.04
1497.08
November
1497.08
1504.82
December
1504.82
1513.05
Month
Open(₹)
Close(₹)
January
1316.66
1325.02
February
1325.02
1333.05
March
1333.05
1342.83
April
1342.83
1352.16
May
1352.16
1361.22
June
1361.22
1369.84
July
1369.84
1378.37
August
1378.37
1386.59
September
1386.59
1394.18
October
1394.18
1402.57
November
1402.57
1410.59
December
1410.59
1418.23
Month
Open(₹)
Close(₹)
January
1214.16
1222.88
February
1222.88
1230.76
March
1230.76
1239.95
April
1239.95
1248.91
May
1248.91
1258.13
June
1258.13
1266.61
July
1266.61
1274.96
August
1274.96
1283.63
September
1283.63
1291.84
October
1291.84
1300.23
November
1300.23
1308.26
December
1308.26
1316.66
Month
Open(₹)
Close(₹)
January
1112.49
1120.53
February
1120.53
1127.98
March
1127.98
1137.53
April
1137.53
1146.1
May
1146.1
1154.77
June
1154.77
1162.98
July
1162.98
1171.37
August
1171.37
1179.89
September
1179.89
1188.35
October
1188.35
1196.82
November
1196.82
1205.5
December
1205.5
1214.16
Month
Open(₹)
Close(₹)
March
1031.36
1039.3
April
1039.3
1046.96
May
1046.96
1054.22
June
1054.22
1061.58
July
1061.58
1067.25
August
1067.25
1076.64
September
1076.64
1086.26
October
1086.26
1095.6
November
1095.6
1104
December
1104
1112.49

What does Nippon India Money Market Fund Direct Plan Bonus 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 Money Market Fund Direct Plan Bonus Plan as on 05.10.2022 is 7.24.

Check Nippon India Money Market Fund Direct Plan Bonus 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.