SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl wdrl Net Asset Value

NAV details of SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl wdrl:

SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl wdrl NAV Today(29.09.2022)
₹1314.680.02 %
Exit Load
0%

How was the NAV for SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl 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 Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl wdrl NAV calculation:

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

SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl wdrl NAV History

SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
1279.41
1283.53
February
1283.53
1287.72
March
1287.72
1292.77
April
1292.77
1295.57
May
1295.57
1294.93
June
1294.93
1299.71
July
1299.71
1306.18
August
1306.18
1312.65
September
1312.65
-
Month
Open(₹)
Close(₹)
January
1233.8
1235.31
February
1235.31
1238.32
March
1238.32
1242.32
April
1242.32
1247.24
May
1247.24
1251.39
June
1251.39
1255.28
July
1255.28
1260.58
August
1260.58
1266.22
September
1266.22
1268.91
October
1268.91
1271.77
November
1271.77
1276.12
December
1276.12
1279.41
Month
Open(₹)
Close(₹)
January
1159.13
1160.77
February
1160.77
1167.44
March
1167.44
1168.62
April
1168.62
1174.88
May
1174.88
1189.52
June
1189.52
1200.8
July
1200.8
1208.23
August
1208.23
1212.78
September
1212.78
1216.13
October
1216.13
1223.6
November
1223.6
1229.77
December
1229.77
1233.8
Month
Open(₹)
Close(₹)
January
1110.75
1113.47
February
1113.47
1115.17
March
1115.17
1120
April
1120
1119.61
May
1119.61
1125.21
June
1125.21
1126.05
July
1126.05
1132.99
August
1132.99
1136.64
September
1136.64
1137.88
October
1137.88
1143.56
November
1143.56
1145.42
December
1145.42
1159.13
Month
Open(₹)
Close(₹)
January
1079.75
1078.4
February
1078.4
1079.82
March
1079.82
1085.2
April
1085.2
1084.54
May
1084.54
1090.11
June
1090.11
1097.49
July
1097.49
1099.67
August
1099.67
1101.1
September
1101.1
1101.07
October
1101.07
1103.12
November
1103.12
1106.68
December
1106.68
1110.75
Month
Open(₹)
Close(₹)
January
1080.53
1081.46
February
1081.46
1081.16
March
1081.16
1081.47
April
1081.47
1081.52
May
1081.52
1082.35
June
1082.35
1082.44
July
1082.44
1083.7
August
1083.7
1083.77
September
1083.77
1082.16
October
1082.16
1082.48
November
1082.48
1081.29
December
1081.29
1079.75
Month
Open(₹)
Close(₹)
January
1068.2
1067.99
February
1067.99
1068.36
March
1068.36
1073.2
April
1073.2
1074.4
May
1074.4
1075.7
June
1075.7
1077.16
July
1077.16
1080.05
August
1080.05
1079.83
September
1079.83
1079.77
October
1079.77
1079.42
November
1079.42
1082.63
December
1082.63
1080.53
Month
Open(₹)
Close(₹)
January
1050.75
1050.59
February
1050.59
1052.04
March
1052.04
1057.53
April
1057.53
1058
May
1058
1060.45
June
1060.45
1061.59
July
1061.59
1063.49
August
1063.49
1064.84
September
1064.84
1067.08
October
1067.08
1067.32
November
1067.32
1067.89
December
1067.89
1068.2
Month
Open(₹)
Close(₹)
January
1042.71
1042.47
February
1042.47
1038.99
March
1038.99
1043.56
April
1043.56
1043.19
May
1043.19
1045.39
June
1045.39
1047.14
July
1047.14
1047.63
August
1047.63
1047.73
September
1047.73
1048.02
October
1048.02
1048.27
November
1048.27
1049.93
December
1049.93
1050.75
Month
Open(₹)
Close(₹)
January
1038.87
1038.57
February
1038.57
1038.76
March
1038.76
1039.91
April
1039.91
1038.51
May
1038.51
1038.51
June
1038.51
1038.51
July
1038.51
1038.96
August
1038.96
1038.51
September
1038.51
1050.43
October
1050.43
1044.21
November
1044.21
1043.76
December
1043.76
1042.71

What does SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl 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 Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl wdrl as on 29.09.2022 is 5.64.

Check SBI Magnum Low Duration Fund Direct Plan Monthly Reinvestment of Income Dist cum capl 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.