SBI Magnum Ultra Short Duration Fund Direct Plan Growth Net Asset Value

NAV details of SBI Magnum Ultra Short Duration Fund Direct Plan Growth:

SBI Magnum Ultra Short Duration Fund Direct Plan Growth NAV Today(03.10.2022)
₹4985.790.01 %
Exit Load
0%

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

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

SBI Magnum Ultra Short Duration Fund Direct Plan Growth NAV History

SBI Magnum Ultra Short Duration Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
4845.69
4861.52
February
4861.52
4877.16
March
4877.16
4897.07
April
4897.07
4909.11
May
4909.11
4910.27
June
4910.27
4930.31
July
4930.31
4952.39
August
4952.39
4975.48
September
4975.48
-
Month
Open(₹)
Close(₹)
January
4680.12
4687.45
February
4687.45
4702.3
March
4702.3
4718.97
April
4718.97
4734.15
May
4734.15
4746.48
June
4746.48
4760.77
July
4760.77
4776.28
August
4776.28
4793.61
September
4793.61
4804.55
October
4804.55
4816.26
November
4816.26
4832.04
December
4832.04
4845.69
Month
Open(₹)
Close(₹)
January
4413.45
4435.89
February
4435.89
4456.41
March
4456.41
4479.65
April
4479.65
4504.52
May
4504.52
4547.24
June
4547.24
4579.02
July
4579.02
4599.18
August
4599.18
4615.25
September
4615.25
4629.69
October
4629.69
4649.9
November
4649.9
4666.99
December
4666.99
4680.12
Month
Open(₹)
Close(₹)
January
4081.95
4111.34
February
4111.34
4135.34
March
4135.34
4167.8
April
4167.8
4189.77
May
4189.77
4223.3
June
4223.3
4246.63
July
4246.63
4284.14
August
4284.14
4312.68
September
4312.68
4337.36
October
4337.36
4370.2
November
4370.2
4392.59
December
4392.59
4413.45
Month
Open(₹)
Close(₹)
January
3777.35
3798.27
February
3798.27
3817.44
March
3817.44
3843.89
April
3843.89
3865.59
May
3865.59
3888.84
June
3888.84
3915.74
July
3915.74
3943.79
August
3943.79
3968.38
September
3968.38
3991.57
October
3991.57
4018.68
November
4018.68
4048.78
December
4048.78
4081.95
Month
Open(₹)
Close(₹)
January
3539.48
3559.4
February
3559.4
3577.22
March
3577.22
3597.96
April
3597.96
3617.3
May
3617.3
3637.4
June
3637.4
3657.2
July
3657.2
3677.76
August
3677.76
3697.89
September
3697.89
3717.46
October
3717.46
3737.58
November
3737.58
3756.93
December
3756.93
3777.35
Month
Open(₹)
Close(₹)
January
3285.03
3306.06
February
3306.06
3326.36
March
3326.36
3352.58
April
3352.58
3374.49
May
3374.49
3397.13
June
3397.13
3418.47
July
3418.47
3439.64
August
3439.64
3460.04
September
3460.04
3479.97
October
3479.97
3500.11
November
3500.11
3520.14
December
3520.14
3539.48
Month
Open(₹)
Close(₹)
January
3031.13
3052.55
February
3052.55
3072.26
March
3072.26
3096.08
April
3096.08
3117.75
May
3117.75
3139.7
June
3139.7
3160.59
July
3160.59
3181.97
August
3181.97
3202.82
September
3202.82
3223.65
October
3223.65
3244.34
November
3244.34
3264.16
December
3264.16
3285.03
Month
Open(₹)
Close(₹)
January
2778.11
2798.95
February
2798.95
2817.93
March
2817.93
2840.36
April
2840.36
2861.91
May
2861.91
2883.23
June
2883.23
2903.72
July
2903.72
2924.66
August
2924.66
2945.98
September
2945.98
2967.08
October
2967.08
2988.87
November
2988.87
3009.82
December
3009.82
3031.13
Month
Open(₹)
Close(₹)
January
2539.32
2556.3
February
2556.3
2572.39
March
2572.39
2592.38
April
2592.38
2611.52
May
2611.52
2629.95
June
2629.95
2647.99
July
2647.99
2663.2
August
2663.2
2687.78
September
2687.78
2712.33
October
2712.33
2736.07
November
2736.07
2757.04
December
2757.04
2778.11

What does SBI Magnum Ultra Short 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 Ultra Short Duration Fund Direct Plan Growth as on 03.10.2022 is 7.17.

Check SBI Magnum Ultra Short 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.