Sundaram Mid Cap - Direct Plan - Growth Option Net Asset Value

NAV details of Sundaram Mid Cap - Direct Plan - Growth Option:

Sundaram Mid Cap - Direct Plan - Growth Option NAV Today(26.09.2022)
₹801.472.3 %
Exit Load
1%

How was the NAV for Sundaram Mid Cap - Direct Plan - Growth Option 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.

Sundaram Mid Cap - Direct Plan - Growth Option NAV calculation:

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

Sundaram Mid Cap - Direct Plan - Growth Option NAV History

Sundaram Mid Cap - Direct Plan - Growth Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
752.2
751.73
February
751.73
717.12
March
717.12
744.26
April
744.26
740.95
May
740.95
700.41
June
700.41
673.72
July
673.72
762.8
August
762.8
803.52
September
803.52
-
Month
Open(₹)
Close(₹)
January
547.7
564.56
February
564.56
613.54
March
613.54
611.4
April
611.4
604.42
May
604.42
632.56
June
632.56
668.25
July
668.25
700.15
August
700.15
726.77
September
726.77
743.95
October
743.95
759.69
November
759.69
738.34
December
738.34
752.2
Month
Open(₹)
Close(₹)
January
481.99
507.18
February
507.18
492.4
March
492.4
339.17
April
339.17
377.13
May
377.13
378.58
June
378.58
405.47
July
405.47
414.33
August
414.33
449.8
September
449.8
457.5
October
457.5
455.47
November
455.47
516.04
December
516.04
547.7
Month
Open(₹)
Close(₹)
January
479.54
457.59
February
457.59
457.45
March
457.45
488.81
April
488.81
476.65
May
476.65
491.99
June
491.99
481.13
July
481.13
435.85
August
435.85
436.92
September
436.92
452.27
October
452.27
475.09
November
475.09
477.95
December
477.95
481.99
Month
Open(₹)
Close(₹)
January
560.7
544.43
February
544.43
529.7
March
529.7
510.71
April
510.71
549.32
May
549.32
518.97
June
518.97
500.84
July
500.84
509.38
August
509.38
522.98
September
522.98
462.28
October
462.28
456.37
November
456.37
463.86
December
463.86
479.54
Month
Open(₹)
Close(₹)
January
396.57
429.25
February
429.25
440.15
March
440.15
453.68
April
453.68
482.51
May
482.51
479.63
June
479.63
477.38
July
477.38
495.09
August
495.09
494.7
September
494.7
494.98
October
494.98
522.28
November
522.28
533.38
December
533.38
560.7
Month
Open(₹)
Close(₹)
January
356.36
333.11
February
333.11
305.77
March
305.77
333.23
April
333.23
347.13
May
347.13
355.62
June
355.62
378.19
July
378.19
399.26
August
399.26
413.47
September
413.47
416.85
October
416.85
439.11
November
439.11
398.56
December
398.56
396.57
Month
Open(₹)
Close(₹)
January
318.41
336.52
February
336.52
336.65
March
336.65
341.61
April
341.61
325.69
May
325.69
341.49
June
341.49
347.36
July
347.36
367.06
August
367.06
340.59
September
340.59
344.3
October
344.3
347.97
November
347.97
353.19
December
353.19
356.36
Month
Open(₹)
Close(₹)
January
180.73
170.01
February
170.01
176.15
March
176.15
194.28
April
194.28
203.22
May
203.22
232.75
June
232.75
263
July
263
253.82
August
253.82
273.65
September
273.65
283.09
October
283.09
292.03
November
292.03
307.3
December
307.3
318.41
Month
Open(₹)
Close(₹)
January
173.06
166.23
February
166.23
156.18
March
156.18
156.38
April
156.38
157.45
May
157.45
160.24
June
160.24
157.93
July
157.93
145.53
August
145.53
140.84
September
140.84
153.49
October
153.49
163.22
November
163.22
167.06
December
167.06
180.73

What does Sundaram Mid Cap - Direct Plan - Growth Option’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 Sundaram Mid Cap - Direct Plan - Growth Option as on 26.09.2022 is 17.07.

Check Sundaram Mid Cap - Direct Plan - Growth Option 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.