PGIM India Money Market Fund Direct Growth Net Asset Value

NAV details of PGIM India Money Market Fund Direct Growth:

PGIM India Money Market Fund Direct Growth NAV Today(07.10.2022)
₹1119.340.03 %
Exit Load
0%

How was the NAV for PGIM India Money Market Fund Direct Growth 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.

PGIM India Money Market Fund Direct Growth NAV calculation:

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

PGIM India Money Market Fund Direct Growth NAV History

PGIM India Money Market Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
1082.87
1086.43
February
1086.43
1089.87
March
1089.87
1094.22
April
1094.22
1097.51
May
1097.51
1100.31
June
1100.31
1104.83
July
1104.83
1109.5
August
1109.5
1114.4
September
1114.4
1118.3
October
1118.3
-
Month
Open(₹)
Close(₹)
January
1043.84
1046.21
February
1046.21
1049.55
March
1049.55
1052.91
April
1052.91
1056.03
May
1056.03
1059.27
June
1059.27
1062.5
July
1062.5
1066.07
August
1066.07
1070.67
September
1070.67
1073.24
October
1073.24
1075.84
November
1075.84
1079.51
December
1079.51
1082.87
Month
Open(₹)
Close(₹)
April
1003.01
1009.35
May
1009.35
1017.67
June
1017.67
1022.79
July
1022.79
1026.92
August
1026.92
1030.16
September
1030.16
1033.04
October
1033.04
1037.24
November
1037.24
1040.89
December
1040.89
1043.84

What does PGIM India Money Market Fund Direct Growth’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 PGIM India Money Market Fund Direct Growth as on 07.10.2022 is 4.46.

Check PGIM India Money Market Fund Direct Growth to get a detailed description of the total returns.

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.