SBI Focused Equity Fund Direct Plan Growth Net Asset Value

NAV details of SBI Focused Equity Fund Direct Plan Growth:

SBI Focused Equity Fund Direct Plan Growth NAV Today(27.09.2022)
₹249.362.51 %
Exit Load
1%

How was the NAV for SBI Focused Equity 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 Focused Equity Fund Direct Plan Growth NAV calculation:

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

SBI Focused Equity Fund Direct Plan Growth NAV History

SBI Focused Equity Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
273.32
260.24
February
260.24
251.33
March
251.33
256.18
April
256.18
246.51
May
246.51
235.36
June
235.36
226.68
July
226.68
247.9
August
247.9
251.99
September
251.99
-
Month
Open(₹)
Close(₹)
January
189.87
188.41
February
188.41
200.67
March
200.67
203.15
April
203.15
206.68
May
206.68
217.94
June
217.94
226.88
July
226.88
233.87
August
233.87
250.88
September
250.88
258.85
October
258.85
272.42
November
272.42
275.14
December
275.14
273.32
Month
Open(₹)
Close(₹)
January
163.34
168.33
February
168.33
165.34
March
165.34
125.26
April
125.26
139.59
May
139.59
139.57
June
139.57
147.5
July
147.5
151.51
August
151.51
161.36
September
161.36
155.29
October
155.29
158.41
November
158.41
180.69
December
180.69
189.87
Month
Open(₹)
Close(₹)
January
139.89
134.97
February
134.97
137.54
March
137.54
149.36
April
149.36
149.84
May
149.84
155.21
June
155.21
154.19
July
154.19
145.9
August
145.9
143.31
September
143.31
152.69
October
152.69
159.5
November
159.5
162.41
December
162.41
163.34
Month
Open(₹)
Close(₹)
January
143.52
142.94
February
142.94
138.71
March
138.71
136.27
April
136.27
145.23
May
145.23
142.54
June
142.54
137.24
July
137.24
143.29
August
143.29
148.3
September
148.3
133.42
October
133.42
131.89
November
131.89
135.46
December
135.46
139.89
Month
Open(₹)
Close(₹)
January
98.24
103.72
February
103.72
107.63
March
107.63
111.18
April
111.18
112.96
May
112.96
113.91
June
113.91
117.56
July
117.56
123.21
August
123.21
123.9
September
123.9
123.88
October
123.88
128.92
November
128.92
137.44
December
137.44
143.52
Month
Open(₹)
Close(₹)
January
96.34
90.44
February
90.44
86.02
March
86.02
92.59
April
92.59
97.74
May
97.74
98.64
June
98.64
100.65
July
100.65
104.84
August
104.84
107.73
September
107.73
107.57
October
107.57
110.37
November
110.37
102.63
December
102.63
98.24
Month
Open(₹)
Close(₹)
January
91.14
94.88
February
94.88
93.28
March
93.28
93.88
April
93.88
91.04
May
91.04
90.86
June
90.86
91.84
July
91.84
94.82
August
94.82
90.71
September
90.71
91.98
October
91.98
95.42
November
95.42
93.84
December
93.84
96.34
Month
Open(₹)
Close(₹)
January
56.94
54.66
February
54.66
55.27
March
55.27
59.81
April
59.81
61.33
May
61.33
67.62
June
67.62
75.02
July
75.02
76.49
August
76.49
80.72
September
80.72
83.02
October
83.02
84.09
November
84.09
87.6
December
87.6
91.14
Month
Open(₹)
Close(₹)
January
61.46
60.52
February
60.52
56.09
March
56.09
54.05
April
54.05
55.67
May
55.67
56.71
June
56.71
54.22
July
54.22
50.3
August
50.3
48.06
September
48.06
50.15
October
50.15
52.55
November
52.55
54.52
December
54.52
56.94

What does SBI Focused Equity 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 Focused Equity Fund Direct Plan Growth as on 27.09.2022 is 15.48.

Check SBI Focused Equity 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.