Sundaram Multi Cap Fund-Direct Plan - Option Net Asset Value

NAV details of Sundaram Multi Cap Fund-Direct Plan - Option:

Sundaram Multi Cap Fund-Direct Plan - Option NAV Today(26.09.2022)
₹264.740.13 %
Exit Load
1%

How was the NAV for Sundaram Multi Cap Fund-Direct Plan - 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 Multi Cap Fund-Direct Plan - Option NAV calculation:

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

Sundaram Multi Cap Fund-Direct Plan - Option NAV History

Sundaram Multi Cap Fund-Direct Plan - Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
259.03
261.92
February
261.92
246.04
March
246.04
256.84
April
256.84
250.43
May
250.43
237.99
June
237.99
227.98
July
227.98
252.69
August
252.69
262.16
September
262.16
-
Month
Open(₹)
Close(₹)
January
176.37
180.83
February
180.83
190.86
March
190.86
193.35
April
193.35
192.06
May
192.06
206.37
June
206.37
217.44
July
217.44
227.03
August
227.03
240.48
September
240.48
246.91
October
246.91
253.76
November
253.76
252.22
December
252.22
259.03
Month
Open(₹)
Close(₹)
January
151.82
152.88
February
152.88
147.84
March
147.84
108.1
April
108.1
125.61
May
125.61
125.4
June
125.4
132.65
July
132.65
140.07
August
140.07
145.47
September
145.47
146.12
October
146.12
148.14
November
148.14
165.96
December
165.96
176.37
Month
Open(₹)
Close(₹)
January
144.96
141.77
February
141.77
140.31
March
140.31
150.53
April
150.53
149.16
May
149.16
152.55
June
152.55
150.26
July
150.26
138.12
August
138.12
137.7
September
137.7
141.12
October
141.12
147.51
November
147.51
150.88
December
150.88
151.82
Month
Open(₹)
Close(₹)
January
156.15
156.58
February
156.58
150.28
March
150.28
144.32
April
144.32
155.92
May
155.92
148.32
June
148.32
144.12
July
144.12
150.2
August
150.2
156.4
September
156.4
143.57
October
143.57
140.46
November
140.46
143.42
December
143.42
144.96
Month
Open(₹)
Close(₹)
January
104.55
114.35
February
114.35
117.18
March
117.18
122.54
April
122.54
128.84
May
128.84
131.7
June
131.7
131.64
July
131.64
138.9
August
138.9
138
September
138
137.82
October
137.82
151.93
November
151.93
150.21
December
150.21
156.15
Month
Open(₹)
Close(₹)
January
98.23
90.05
February
90.05
83.86
March
83.86
91.69
April
91.69
93.81
May
93.81
96.63
June
96.63
101.43
July
101.43
104.95
August
104.95
110.97
September
110.97
111.56
October
111.56
114.68
November
114.68
105.51
December
105.51
104.55
Month
Open(₹)
Close(₹)
January
94.56
99.06
February
99.06
99.02
March
99.02
97.14
April
97.14
93.74
May
93.74
97.4
June
97.4
98.04
July
98.04
101.1
August
101.1
91.24
September
91.24
93.48
October
93.48
96.62
November
96.62
97.69
December
97.69
98.23
Month
Open(₹)
Close(₹)
January
62.97
60.54
February
60.54
62.15
March
62.15
67.23
April
67.23
68.46
May
68.46
78.32
June
78.32
84.94
July
84.94
83.04
August
83.04
88.05
September
88.05
88.24
October
88.24
92.78
November
92.78
95.63
December
95.63
94.56
Month
Open(₹)
Close(₹)
January
58.21
57.82
February
57.82
53.67
March
53.67
53.05
April
53.05
54.98
May
54.98
55.46
June
55.46
54.18
July
54.18
51.23
August
51.23
49.98
September
49.98
53.95
October
53.95
59.84
November
59.84
59.58
December
59.58
62.97

What does Sundaram Multi Cap Fund-Direct Plan - 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 Multi Cap Fund-Direct Plan - Option as on 26.09.2022 is 16.86.

Check Sundaram Multi Cap Fund-Direct Plan - 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.