SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl Net Asset Value

NAV details of SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl:

SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl NAV Today(26.09.2022)
₹66.341.97 %
Exit Load
0%

How was the NAV for SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl 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 Reinvestment of Income Distribution cum capital wdrl NAV calculation:

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

SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl NAV History

SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
71.48
72.61
February
72.61
67.36
March
67.36
64.36
April
64.36
63.49
May
63.49
61.62
June
61.62
59.42
July
59.42
65.12
August
65.12
67.11
September
67.11
-
Month
Open(₹)
Close(₹)
January
54.54
56.26
February
56.26
58.33
March
58.33
58.61
April
58.61
58.43
May
58.43
62.57
June
62.57
64.46
July
64.46
66.18
August
66.18
69.01
September
69.01
70.39
October
70.39
73.51
November
73.51
70.68
December
70.68
71.48
Month
Open(₹)
Close(₹)
January
50.08
51.18
February
51.18
47.71
March
47.71
32.27
April
32.27
38.13
May
38.13
38.19
June
38.19
40.74
July
40.74
43.81
August
43.81
45.35
September
45.35
45.4
October
45.4
45.45
November
45.45
50.88
December
50.88
54.54
Month
Open(₹)
Close(₹)
January
52.16
51.8
February
51.8
51.41
March
51.41
50.61
April
50.61
50.07
May
50.07
50.81
June
50.81
50.15
July
50.15
46.3
August
46.3
45.93
September
45.93
47.35
October
47.35
50.06
November
50.06
50.12
December
50.12
50.08
Month
Open(₹)
Close(₹)
January
61.43
62.18
February
62.18
58.91
March
58.91
51.55
April
51.55
54.21
May
54.21
52.19
June
52.19
50.75
July
50.75
53.25
August
53.25
55.68
September
55.68
51.24
October
51.24
49.96
November
49.96
51.43
December
51.43
52.16
Month
Open(₹)
Close(₹)
January
50.57
53.67
February
53.67
55.11
March
55.11
51.84
April
51.84
52.85
May
52.85
54.49
June
54.49
54.57
July
54.57
57.27
August
57.27
56.79
September
56.79
55.2
October
55.2
60.06
November
60.06
58.75
December
58.75
61.43
Month
Open(₹)
Close(₹)
January
54.96
50.98
February
50.98
48.21
March
48.21
46.85
April
46.85
47.9
May
47.9
49.45
June
49.45
50.76
July
50.76
53.19
August
53.19
54.25
September
54.25
54.13
October
54.13
54.32
November
54.32
51.14
December
51.14
50.57
Month
Open(₹)
Close(₹)
January
59.42
63.9
February
63.9
64.2
March
64.2
56.98
April
56.98
54.16
May
54.16
56.57
June
56.57
57.21
July
57.21
57.99
August
57.99
53.91
September
53.91
54.93
October
54.93
55.35
November
55.35
54.89
December
54.89
54.96
Month
Open(₹)
Close(₹)
January
39.6
38.6
February
38.6
40.52
March
40.52
42.83
April
42.83
43.37
May
43.37
47.92
June
47.92
51.99
July
51.99
52.04
August
52.04
55.64
September
55.64
56.09
October
56.09
57.82
November
57.82
60.22
December
60.22
59.42
Month
Open(₹)
Close(₹)
January
37.1
36.63
February
36.63
34.7
March
34.7
34.55
April
34.55
35.82
May
35.82
36.32
June
36.32
35.52
July
35.52
34.25
August
34.25
32.7
September
32.7
34.97
October
34.97
38.15
November
38.15
37.95
December
37.95
39.6

What does SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl’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 Reinvestment of Income Distribution cum capital wdrl as on 26.09.2022 is 13.63.

Check SBI Magnum Long Term Equity Scheme Direct Reinvestment of Income Distribution cum capital wdrl 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.