SBI Banking and PSU Fund Direct Plan Growth Net Asset Value

NAV details of SBI Banking and PSU Fund Direct Plan Growth:

SBI Banking and PSU Fund Direct Plan Growth NAV Today(27.09.2022)
₹2680.780.04 %
Exit Load
0%

How was the NAV for SBI Banking and PSU Fund Direct Plan 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.

SBI Banking and PSU Fund Direct Plan Growth NAV calculation:

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

SBI Banking and PSU Fund Direct Plan Growth NAV History

SBI Banking and PSU Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
2640.53
2643.28
February
2643.28
2657.71
March
2657.71
2668.04
April
2668.04
2663.48
May
2663.48
2644.54
June
2644.54
2654.91
July
2654.91
2669.45
August
2669.45
2682.53
September
2682.53
-
Month
Open(₹)
Close(₹)
January
2563.43
2551.57
February
2551.57
2543.23
March
2543.23
2554.01
April
2554.01
2573.53
May
2573.53
2586.07
June
2586.07
2587.92
July
2587.92
2605.2
August
2605.2
2622.55
September
2622.55
2624.47
October
2624.47
2626.95
November
2626.95
2638.88
December
2638.88
2640.53
Month
Open(₹)
Close(₹)
January
2310.45
2332.13
February
2332.13
2361.06
March
2361.06
2365.34
April
2365.34
2375.23
May
2375.23
2425.85
June
2425.85
2467.65
July
2467.65
2495.92
August
2495.92
2493.39
September
2493.39
2494.12
October
2494.12
2529.19
November
2529.19
2552.67
December
2552.67
2563.43
Month
Open(₹)
Close(₹)
January
2092.4
2099.64
February
2099.64
2114.75
March
2114.75
2146.11
April
2146.11
2146.43
May
2146.43
2180.97
June
2180.97
2195.2
July
2195.2
2233.76
August
2233.76
2251.6
September
2251.6
2258.96
October
2258.96
2288.05
November
2288.05
2306.89
December
2306.89
2310.45
Month
Open(₹)
Close(₹)
January
1942.61
1951.02
February
1951.02
1961.19
March
1961.19
1978.25
April
1978.25
1984.18
May
1984.18
1993.42
June
1993.42
2006.91
July
2006.91
2025.02
August
2025.02
2034.81
September
2034.81
2041.3
October
2041.3
2052.93
November
2052.93
2075.84
December
2075.84
2092.4
Month
Open(₹)
Close(₹)
January
1814.77
1827.68
February
1827.68
1836.59
March
1836.59
1847.21
April
1847.21
1857.7
May
1857.7
1870.35
June
1870.35
1881.61
July
1881.61
1895.36
August
1895.36
1906.48
September
1906.48
1913.51
October
1913.51
1925.51
November
1925.51
1934.47
December
1934.47
1942.61
Month
Open(₹)
Close(₹)
January
1664.85
1673.93
February
1673.93
1683.94
March
1683.94
1702.92
April
1702.92
1714.52
May
1714.52
1726.03
June
1726.03
1738.51
July
1738.51
1754.42
August
1754.42
1766.95
September
1766.95
1779.16
October
1779.16
1791.03
November
1791.03
1809.68
December
1809.68
1814.77
Month
Open(₹)
Close(₹)
January
1525.92
1537.81
February
1537.81
1545.75
March
1545.75
1560.67
April
1560.67
1569.55
May
1569.55
1583.36
June
1583.36
1594.28
July
1594.28
1605.88
August
1605.88
1618.6
September
1618.6
1631.99
October
1631.99
1643.95
November
1643.95
1654.71
December
1654.71
1664.85
Month
Open(₹)
Close(₹)
January
1382.1
1391.53
February
1391.53
1400.98
March
1400.98
1417.69
April
1417.69
1427.73
May
1427.73
1439.46
June
1439.46
1454.73
July
1454.73
1464.91
August
1464.91
1476.03
September
1476.03
1489.76
October
1489.76
1503.25
November
1503.25
1515.98
December
1515.98
1525.92
Month
Open(₹)
Close(₹)
January
1267.19
1275.61
February
1275.61
1282.96
March
1282.96
1290.98
April
1290.98
1300.96
May
1300.96
1309.66
June
1309.66
1317.25
July
1317.25
1325.26
August
1325.26
1336.2
September
1336.2
1348.58
October
1348.58
1358.77
November
1358.77
1368.75
December
1368.75
1382.1

What does SBI Banking and PSU Fund Direct Plan 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 SBI Banking and PSU Fund Direct Plan Growth as on 27.09.2022 is 8.

Check SBI Banking and PSU Fund Direct Plan Growth 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.