Sundaram Tax Savings Fund - Direct Plan - Growth Net Asset Value

NAV details of Sundaram Tax Savings Fund - Direct Plan - Growth:

Sundaram Tax Savings Fund - Direct Plan - Growth NAV Today(04.10.2022)
₹349.481.64 %
Exit Load
0%

How was the NAV for Sundaram Tax Savings 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.

Sundaram Tax Savings Fund - Direct Plan - Growth NAV calculation:

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

Sundaram Tax Savings Fund - Direct Plan - Growth NAV History

Sundaram Tax Savings Fund - Direct Plan - Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
341.87
351.64
February
351.64
332.81
March
332.81
346.27
April
346.27
337.46
May
337.46
327.58
June
327.58
314.29
July
314.29
345.58
August
345.58
357.35
September
357.35
-
Month
Open(₹)
Close(₹)
January
258.34
267.05
February
267.05
277.58
March
277.58
276.39
April
276.39
274.54
May
274.54
295.23
June
295.23
303.86
July
303.86
310.05
August
310.05
327.59
September
327.59
338.04
October
338.04
352.69
November
352.69
338.67
December
338.67
341.87
Month
Open(₹)
Close(₹)
January
215.97
215.94
February
215.94
205.15
March
205.15
153
April
153
180.06
May
180.06
180.82
June
180.82
192.19
July
192.19
202.62
August
202.62
211.92
September
211.92
209.86
October
209.86
214.15
November
214.15
241.6
December
241.6
258.34
Month
Open(₹)
Close(₹)
January
210
204.84
February
204.84
202.6
March
202.6
217.68
April
217.68
215.65
May
215.65
220.54
June
220.54
217.15
July
217.15
199.26
August
199.26
198.06
September
198.06
202.39
October
202.39
211.42
November
211.42
214.66
December
214.66
215.97
Month
Open(₹)
Close(₹)
January
227.61
228.05
February
228.05
218.58
March
218.58
209.63
April
209.63
227.39
May
227.39
215.75
June
215.75
209.36
July
209.36
218.38
August
218.38
227.7
September
227.7
207.67
October
207.67
203.08
November
203.08
207.62
December
207.62
210
Month
Open(₹)
Close(₹)
January
153.09
167.58
February
167.58
171.72
March
171.72
179.45
April
179.45
188.54
May
188.54
192.55
June
192.55
192.28
July
192.28
202.75
August
202.75
201.29
September
201.29
200.96
October
200.96
221.58
November
221.58
218.91
December
218.91
227.61
Month
Open(₹)
Close(₹)
January
144.44
132.41
February
132.41
123.2
March
123.2
134.71
April
134.71
137.79
May
137.79
141.97
June
141.97
149.04
July
149.04
154.17
August
154.17
163.04
September
163.04
163.91
October
163.91
168.46
November
168.46
154.69
December
154.69
153.09
Month
Open(₹)
Close(₹)
January
139.3
145.88
February
145.88
145.8
March
145.8
143.02
April
143.02
137.95
May
137.95
143.38
June
143.38
144.3
July
144.3
148.75
August
148.75
134.18
September
134.18
137.49
October
137.49
142.11
November
142.11
143.67
December
143.67
144.44
Month
Open(₹)
Close(₹)
January
92.87
89.21
February
89.21
91.56
March
91.56
99.1
April
99.1
100.89
May
100.89
115.5
June
115.5
125.34
July
125.34
122.41
August
122.41
129.74
September
129.74
129.95
October
129.95
136.65
November
136.65
140.77
December
140.77
139.3
Month
Open(₹)
Close(₹)
January
85.69
85.15
February
85.15
79.11
March
79.11
78.2
April
78.2
81.04
May
81.04
81.78
June
81.78
79.92
July
79.92
75.55
August
75.55
73.67
September
73.67
79.54
October
79.54
88.25
November
88.25
87.88
December
87.88
92.87

What does Sundaram Tax Savings 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 Sundaram Tax Savings Fund - Direct Plan - Growth as on 04.10.2022 is 15.52.

Check Sundaram Tax Savings 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.