Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal Net Asset Value

NAV details of Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal:

Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal NAV Today(03.10.2022)
₹87.361.03 %
Exit Load
1%

How was the NAV for Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal 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.

Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal NAV calculation:

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

Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal NAV History

Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal NAV Monthly History

Month
Open(₹)
Close(₹)
January
87.63
87.77
February
87.77
82.77
March
82.77
87.37
April
87.37
85.81
May
85.81
83.93
June
83.93
80.47
July
80.47
87.28
August
87.28
90.87
September
90.87
-
Month
Open(₹)
Close(₹)
January
71.28
71.9
February
71.9
75.19
March
75.19
75.24
April
75.24
74.31
May
74.31
78.49
June
78.49
78.64
July
78.64
80.81
August
80.81
84.42
September
84.42
87.15
October
87.15
89.53
November
89.53
86.37
December
86.37
87.63
Month
Open(₹)
Close(₹)
January
63.26
63.21
February
63.21
58.53
March
58.53
43.74
April
43.74
52.16
May
52.16
53.14
June
53.14
56
July
56
59.36
August
59.36
60.12
September
60.12
61.62
October
61.62
62.62
November
62.62
67.85
December
67.85
71.28
Month
Open(₹)
Close(₹)
January
59.02
56.92
February
56.92
57.54
March
57.54
61.41
April
61.41
60.48
May
60.48
61.96
June
61.96
61.53
July
61.53
57.25
August
57.25
58.21
September
58.21
59.95
October
59.95
62.45
November
62.45
63.11
December
63.11
63.26
Month
Open(₹)
Close(₹)
January
63.9
63.89
February
63.89
61.72
March
61.72
60.02
April
60.02
64.29
May
64.29
62.03
June
62.03
60.65
July
60.65
63.83
August
63.83
64.54
September
64.54
58.55
October
58.55
56.28
November
56.28
58.28
December
58.28
59.02
Month
Open(₹)
Close(₹)
January
49.47
53.26
February
53.26
53.97
March
53.97
56.36
April
56.36
58.54
May
58.54
57.83
June
57.83
57.87
July
57.87
60.14
August
60.14
61.17
September
61.17
61.05
October
61.05
63.18
November
63.18
61.32
December
61.32
63.9
Month
Open(₹)
Close(₹)
January
46.2
42.88
February
42.88
39.77
March
39.77
43.12
April
43.12
44.6
May
44.6
46.13
June
46.13
49.64
July
49.64
51.96
August
51.96
51.67
September
51.67
51.51
October
51.51
53.31
November
53.31
49.6
December
49.6
49.47
Month
Open(₹)
Close(₹)
January
46.69
47.93
February
47.93
48.8
March
48.8
48.44
April
48.44
45.98
May
45.98
47.18
June
47.18
46.45
July
46.45
48.01
August
48.01
43.26
September
43.26
43.68
October
43.68
44.17
November
44.17
45.71
December
45.71
46.2
Month
Open(₹)
Close(₹)
January
28.61
26.55
February
26.55
28.31
March
28.31
30.84
April
30.84
31.54
May
31.54
36.39
June
36.39
40.89
July
40.89
38.95
August
38.95
41.2
September
41.2
41.68
October
41.68
43.09
November
43.09
45.68
December
45.68
46.69
Month
Open(₹)
Close(₹)
January
29.75
29
February
29
27.24
March
27.24
26.57
April
26.57
27.02
May
27.02
26.31
June
26.31
25.21
July
25.21
23.92
August
23.92
23.33
September
23.33
25.09
October
25.09
26.98
November
26.98
26.65
December
26.65
28.61

What does Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal’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 Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal as on 03.10.2022 is 15.6.

Check Tata Equity P/E Fund Direct Payout Trigger A (5%)of Income Distribution cum Capital Withdrawal 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.