Nippon India Money Market Fund Direct Plan Growth Option Net Asset Value

NAV details of Nippon India Money Market Fund Direct Plan Growth Option:

Nippon India Money Market Fund Direct Plan Growth Option NAV Today(30.09.2022)
₹3421.920.02 %
Exit Load
0%

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

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

Nippon India Money Market Fund Direct Plan Growth Option NAV History

Nippon India Money Market Fund Direct Plan Growth Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
3313.49
3324.98
February
3324.98
3336.23
March
3336.23
3350.56
April
3350.56
3360.68
May
3360.68
3366.12
June
3366.12
3380.88
July
3380.88
3396.54
August
3396.54
3413.28
September
3413.28
-
Month
Open(₹)
Close(₹)
January
3189.71
3197.56
February
3197.56
3208.02
March
3208.02
3220.75
April
3220.75
3231.44
May
3231.44
3241.32
June
3241.32
3251.63
July
3251.63
3262.56
August
3262.56
3274.87
September
3274.87
3283.01
October
3283.01
3290.97
November
3290.97
3303.13
December
3303.13
3313.49
Month
Open(₹)
Close(₹)
January
3007.52
3021.58
February
3021.58
3035.97
March
3035.97
3052.66
April
3052.66
3072.34
May
3072.34
3103.03
June
3103.03
3120.27
July
3120.27
3133.92
August
3133.92
3145.97
September
3145.97
3156.18
October
3156.18
3168.61
November
3168.61
3180.34
December
3180.34
3189.71
Month
Open(₹)
Close(₹)
January
2780.11
2799.54
February
2799.54
2815.64
March
2815.64
2838.23
April
2838.23
2853.3
May
2853.3
2878.57
June
2878.57
2895.76
July
2895.76
2922.12
August
2922.12
2940.43
September
2940.43
2958.48
October
2958.48
2978.62
November
2978.62
2993.13
December
2993.13
3007.52
Month
Open(₹)
Close(₹)
January
2573.12
2587.29
February
2587.29
2600.46
March
2600.46
2618.19
April
2618.19
2632.97
May
2632.97
2647.79
June
2647.79
2666.63
July
2666.63
2685.47
August
2685.47
2702.42
September
2702.42
2717.99
October
2717.99
2736.58
November
2736.58
2756.11
December
2756.11
2780.11
Month
Open(₹)
Close(₹)
January
2411.86
2425.24
February
2425.24
2437.47
March
2437.47
2451.18
April
2451.18
2464.78
May
2464.78
2478.36
June
2478.36
2491.6
July
2491.6
2505.49
August
2505.49
2519.07
September
2519.07
2532.29
October
2532.29
2545.95
November
2545.95
2559.12
December
2559.12
2573.12
Month
Open(₹)
Close(₹)
January
2239.13
2253.34
February
2253.34
2267
March
2267
2283.64
April
2283.64
2299.5
May
2299.5
2314.91
June
2314.91
2329.58
July
2329.58
2344.08
August
2344.08
2358.05
September
2358.05
2370.97
October
2370.97
2385.23
November
2385.23
2398.87
December
2398.87
2411.86
Month
Open(₹)
Close(₹)
January
2064.82
2079.66
February
2079.66
2093.06
March
2093.06
2108.68
April
2108.68
2123.91
May
2123.91
2139.6
June
2139.6
2154.01
July
2154.01
2168.21
August
2168.21
2182.97
September
2182.97
2196.92
October
2196.92
2211.19
November
2211.19
2224.85
December
2224.85
2239.13
Month
Open(₹)
Close(₹)
January
1891.92
1905.59
February
1905.59
1918.27
March
1918.27
1934.5
April
1934.5
1949.08
May
1949.08
1963.82
June
1963.82
1977.79
July
1977.79
1992.05
August
1992.05
2006.54
September
2006.54
2020.92
October
2020.92
2035.34
November
2035.34
2050.09
December
2050.09
2064.82
Month
Open(₹)
Close(₹)
January
1730.3
1742.83
February
1742.83
1754.05
March
1754.05
1767.54
April
1767.54
1780.49
May
1780.49
1792.85
June
1792.85
1805.34
July
1805.34
1814.98
August
1814.98
1830.96
September
1830.96
1847.31
October
1847.31
1863.18
November
1863.18
1877.47
December
1877.47
1891.92

What does Nippon India Money Market Fund Direct Plan Growth Option’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 Growth Option as on 30.09.2022 is 7.25.

Check Nippon India Money Market Fund Direct Plan Growth Option 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.