SBI Contra Fund Direct Growth Net Asset Value

NAV details of SBI Contra Fund Direct Growth:

SBI Contra Fund Direct Growth NAV Today(04.10.2022)
₹228.630.92 %
Exit Load
1%

How was the NAV for SBI Contra 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.

SBI Contra Fund Direct Growth NAV calculation:

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

SBI Contra Fund Direct Growth NAV History

SBI Contra Fund Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
214.85
216.84
February
216.84
203.7
March
203.7
214.61
April
214.61
217.86
May
217.86
211.06
June
211.06
205.02
July
205.02
224.95
August
224.95
231.72
September
231.72
230.74
October
230.74
-
Month
Open(₹)
Close(₹)
January
142.95
150.52
February
150.52
161.69
March
161.69
163.39
April
163.39
162.74
May
162.74
176.97
June
176.97
182.73
July
182.73
192.16
August
192.16
195.13
September
195.13
205.91
October
205.91
212.37
November
212.37
209.78
December
209.78
214.85
Month
Open(₹)
Close(₹)
January
108.59
110.41
February
110.41
103.4
March
103.4
76.98
April
76.98
89.38
May
89.38
88.42
June
88.42
96.68
July
96.68
103.15
August
103.15
109.87
September
109.87
110.92
October
110.92
112.34
November
112.34
129.6
December
129.6
142.95
Month
Open(₹)
Close(₹)
January
109.01
107.09
February
107.09
107.54
March
107.54
116.1
April
116.1
115.98
May
115.98
115.47
June
115.47
112.76
July
112.76
101.49
August
101.49
100.81
September
100.81
104.04
October
104.04
107.98
November
107.98
109.14
December
109.14
108.59
Month
Open(₹)
Close(₹)
January
125.9
127.56
February
127.56
121.82
March
121.82
115.43
April
115.43
122.94
May
122.94
116.74
June
116.74
112.15
July
112.15
114.67
August
114.67
119.9
September
119.9
107.29
October
107.29
107.4
November
107.4
106.97
December
106.97
109.01
Month
Open(₹)
Close(₹)
January
89.33
94.59
February
94.59
99.11
March
99.11
102.52
April
102.52
104.61
May
104.61
106.81
June
106.81
107.97
July
107.97
113.74
August
113.74
113.04
September
113.04
111.16
October
111.16
120.27
November
120.27
120.78
December
120.78
125.9
Month
Open(₹)
Close(₹)
January
87.24
82.21
February
82.21
78.31
March
78.31
84.8
April
84.8
86.34
May
86.34
89.36
June
89.36
91.73
July
91.73
95.98
August
95.98
98.39
September
98.39
97.44
October
97.44
99.83
November
99.83
92.43
December
92.43
89.33
Month
Open(₹)
Close(₹)
January
86.61
92.39
February
92.39
91.89
March
91.89
91.99
April
91.99
86.5
May
86.5
87.89
June
87.89
88.6
July
88.6
91.69
August
91.69
85.36
September
85.36
86.67
October
86.67
87.78
November
87.78
87.63
December
87.63
87.24
Month
Open(₹)
Close(₹)
January
58.14
56.31
February
56.31
58.27
March
58.27
62.36
April
62.36
62.89
May
62.89
68.35
June
68.35
73.34
July
73.34
72.99
August
72.99
78.75
September
78.75
78.66
October
78.66
81.78
November
81.78
86.37
December
86.37
86.61
Month
Open(₹)
Close(₹)
January
59.09
60.38
February
60.38
58.03
March
58.03
56.95
April
56.95
57.86
May
57.86
58.04
June
58.04
55.9
July
55.9
52.07
August
52.07
49.7
September
49.7
52.32
October
52.32
56.43
November
56.43
56.52
December
56.52
58.14

What does SBI Contra 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 SBI Contra Fund Direct Growth as on 04.10.2022 is 14.88.

Check SBI Contra Fund Direct 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.