SBI Magnum Long Term Equity Scheme Direct Growth Net Asset Value

NAV details of SBI Magnum Long Term Equity Scheme Direct Growth:

SBI Magnum Long Term Equity Scheme Direct Growth NAV Today(28.09.2022)
₹235.270.11 %
Exit Load
0%

How was the NAV for SBI Magnum Long Term Equity Scheme 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 Magnum Long Term Equity Scheme Direct Growth NAV calculation:

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

SBI Magnum Long Term Equity Scheme Direct Growth NAV History

SBI Magnum Long Term Equity Scheme Direct Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
235.15
238.85
February
238.85
221.6
March
221.6
233.61
April
233.61
230.42
May
230.42
223.66
June
223.66
215.66
July
215.66
236.36
August
236.36
243.58
September
243.58
-
Month
Open(₹)
Close(₹)
January
179.43
185.07
February
185.07
191.9
March
191.9
192.81
April
192.81
192.23
May
192.23
205.83
June
205.83
212.06
July
212.06
217.72
August
217.72
227.03
September
227.03
231.57
October
231.57
241.84
November
241.84
232.51
December
232.51
235.15
Month
Open(₹)
Close(₹)
January
149.55
152.85
February
152.85
142.5
March
142.5
106.17
April
106.17
125.43
May
125.43
125.64
June
125.64
134.03
July
134.03
144.11
August
144.11
149.18
September
149.18
149.34
October
149.34
149.51
November
149.51
167.39
December
167.39
179.43
Month
Open(₹)
Close(₹)
January
143.01
142.02
February
142.02
140.96
March
140.96
151.15
April
151.15
149.53
May
149.53
151.75
June
151.75
149.77
July
149.77
138.28
August
138.28
137.18
September
137.18
141.41
October
141.41
149.52
November
149.52
149.69
December
149.69
149.55
Month
Open(₹)
Close(₹)
January
153.62
155.49
February
155.49
147.32
March
147.32
141.3
April
141.3
148.62
May
148.62
143.08
June
143.08
139.13
July
139.13
145.98
August
145.98
152.67
September
152.67
140.48
October
140.48
136.99
November
136.99
141.01
December
141.01
143.01
Month
Open(₹)
Close(₹)
January
115.24
122.29
February
122.29
125.58
March
125.58
129.64
April
129.64
132.17
May
132.17
136.27
June
136.27
136.46
July
136.46
143.21
August
143.21
142
September
142
138.02
October
138.02
150.19
November
150.19
146.91
December
146.91
153.62
Month
Open(₹)
Close(₹)
January
112.8
104.63
February
104.63
98.95
March
98.95
106.79
April
106.79
109.18
May
109.18
112.7
June
112.7
115.68
July
115.68
121.23
August
121.23
123.62
September
123.62
123.35
October
123.35
123.76
November
123.76
116.54
December
116.54
115.24
Month
Open(₹)
Close(₹)
January
108.24
116.41
February
116.41
116.95
March
116.95
116.95
April
116.95
111.16
May
111.16
116.09
June
116.09
117.41
July
117.41
119.02
August
119.02
110.64
September
110.64
112.73
October
112.73
113.59
November
113.59
112.66
December
112.66
112.8
Month
Open(₹)
Close(₹)
January
72.13
70.3
February
70.3
73.79
March
73.79
78.02
April
78.02
79
May
79
87.28
June
87.28
94.7
July
94.7
94.78
August
94.78
101.35
September
101.35
102.17
October
102.17
105.32
November
105.32
109.69
December
109.69
108.24
Month
Open(₹)
Close(₹)
January
67.56
66.71
February
66.71
63.19
March
63.19
62.93
April
62.93
65.23
May
65.23
66.15
June
66.15
64.7
July
64.7
62.38
August
62.38
59.56
September
59.56
63.7
October
63.7
69.49
November
69.49
69.12
December
69.12
72.13

What does SBI Magnum Long Term Equity Scheme 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 Magnum Long Term Equity Scheme Direct Growth as on 28.09.2022 is 13.67.

Check SBI Magnum Long Term Equity Scheme 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.