SBI Magnum Low Duration Fund Direct Plan Growth Net Asset Value

NAV details of SBI Magnum Low Duration Fund Direct Plan Growth:

SBI Magnum Low Duration Fund Direct Plan Growth NAV Today(30.09.2022)
₹2958.820.01 %
Exit Load
0%

How was the NAV for SBI Magnum Low Duration 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 Magnum Low Duration Fund Direct Plan Growth NAV calculation:

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

SBI Magnum Low Duration Fund Direct Plan Growth NAV History

SBI Magnum Low Duration Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
2879.24
2888.5
February
2888.5
2897.93
March
2897.93
2909.3
April
2909.3
2915.62
May
2915.62
2914.17
June
2914.17
2924.94
July
2924.94
2939.5
August
2939.5
2954.07
September
2954.07
-
Month
Open(₹)
Close(₹)
January
2776.61
2779.99
February
2779.99
2786.76
March
2786.76
2795.76
April
2795.76
2806.84
May
2806.84
2816.17
June
2816.17
2824.94
July
2824.94
2836.87
August
2836.87
2849.55
September
2849.55
2855.6
October
2855.6
2862.03
November
2862.03
2871.82
December
2871.82
2879.24
Month
Open(₹)
Close(₹)
January
2586.29
2601.1
February
2601.1
2616.05
March
2616.05
2629.97
April
2629.97
2644.06
May
2644.06
2677
June
2677
2702.37
July
2702.37
2719.1
August
2719.1
2729.31
September
2729.31
2736.84
October
2736.84
2753.64
November
2753.64
2767.5
December
2767.5
2776.61
Month
Open(₹)
Close(₹)
January
2379.16
2395.69
February
2395.69
2410.1
March
2410.1
2431.34
April
2431.34
2441.36
May
2441.36
2464.48
June
2464.48
2477.28
July
2477.28
2503.58
August
2503.58
2522.9
September
2522.9
2536.76
October
2536.76
2560.6
November
2560.6
2575.97
December
2575.97
2586.29
Month
Open(₹)
Close(₹)
January
2211.74
2221.28
February
2221.28
2232.42
March
2232.42
2251.85
April
2251.85
2258.77
May
2258.77
2270.37
June
2270.37
2285.73
July
2285.73
2302.77
August
2302.77
2316.22
September
2316.22
2326.71
October
2326.71
2341.6
November
2341.6
2359.77
December
2359.77
2379.16
Month
Open(₹)
Close(₹)
January
2071.45
2084.75
February
2084.75
2095.72
March
2095.72
2107.93
April
2107.93
2119.55
May
2119.55
2132.93
June
2132.93
2144.93
July
2144.93
2159.33
August
2159.33
2171.35
September
2171.35
2180.19
October
2180.19
2192.93
November
2192.93
2202.67
December
2202.67
2211.74
Month
Open(₹)
Close(₹)
January
1910.47
1920.83
February
1920.83
1932.29
March
1932.29
1951.86
April
1951.86
1964.93
May
1964.93
1978.28
June
1978.28
1992
July
1992
2008.45
August
2008.45
2021.07
September
2021.07
2034.06
October
2034.06
2046.6
November
2046.6
2064.01
December
2064.01
2071.45
Month
Open(₹)
Close(₹)
January
1757.49
1769.76
February
1769.76
1780.6
March
1780.6
1798.03
April
1798.03
1809.17
May
1809.17
1823.63
June
1823.63
1835.92
July
1835.92
1849.59
August
1849.59
1862.37
September
1862.37
1876.74
October
1876.74
1887.62
November
1887.62
1899.25
December
1899.25
1910.47
Month
Open(₹)
Close(₹)
January
1608.98
1619.12
February
1619.12
1629.73
March
1629.73
1646.31
April
1646.31
1657.58
May
1657.58
1670.57
June
1670.57
1683.5
July
1683.5
1694.72
August
1694.72
1707.01
September
1707.01
1719.5
October
1719.5
1732.2
November
1732.2
1745.32
December
1745.32
1757.49
Month
Open(₹)
Close(₹)
January
1475.24
1485.39
February
1485.39
1494.28
March
1494.28
1506.95
April
1506.95
1518.57
May
1518.57
1529.02
June
1529.02
1539.1
July
1539.1
1540.58
August
1540.58
1552.41
September
1552.41
1570.24
October
1570.24
1584.58
November
1584.58
1595.29
December
1595.29
1608.98

What does SBI Magnum Low Duration 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 Magnum Low Duration Fund Direct Plan Growth as on 30.09.2022 is 7.41.

Check SBI Magnum Low Duration 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.