Tata Ethical Fund Direct Plan Growth Net Asset Value

NAV details of Tata Ethical Fund Direct Plan Growth:

Tata Ethical Fund Direct Plan Growth NAV Today(30.09.2022)
₹300.831.34 %
Exit Load
0.5%

How was the NAV for Tata Ethical 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.

Tata Ethical Fund Direct Plan Growth NAV calculation:

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

Tata Ethical Fund Direct Plan Growth NAV History

Tata Ethical Fund Direct Plan Growth NAV Monthly History

Month
Open(₹)
Close(₹)
January
321.38
313.78
February
313.78
296.13
March
296.13
312.09
April
312.09
301.16
May
301.16
291.26
June
291.26
278.94
July
278.94
303.69
August
303.69
307.51
September
307.51
-
Month
Open(₹)
Close(₹)
January
221.21
223.7
February
223.7
233.03
March
233.03
243.79
April
243.79
243.85
May
243.85
257.48
June
257.48
273.5
July
273.5
277.26
August
277.26
295.93
September
295.93
302.94
October
302.94
300.82
November
300.82
301.39
December
301.39
321.38
Month
Open(₹)
Close(₹)
January
172.04
177.92
February
177.92
170.05
March
170.05
139.64
April
139.64
160.01
May
160.01
158.54
June
158.54
164.32
July
164.32
177.34
August
177.34
180.96
September
180.96
186.86
October
186.86
189.94
November
189.94
206.12
December
206.12
221.21
Month
Open(₹)
Close(₹)
January
164.67
161.05
February
161.05
161.39
March
161.39
167.9
April
167.9
167.19
May
167.19
168.84
June
168.84
166.19
July
166.19
155.71
August
155.71
160.4
September
160.4
167.18
October
167.18
175.29
November
175.29
171.08
December
171.08
172.04
Month
Open(₹)
Close(₹)
January
172.52
171.49
February
171.49
166.78
March
166.78
163.97
April
163.97
173.15
May
173.15
165.21
June
165.21
162.98
July
162.98
171.21
August
171.21
174.16
September
174.16
160.55
October
160.55
157.35
November
157.35
161.69
December
161.69
164.67
Month
Open(₹)
Close(₹)
January
126.01
133.88
February
133.88
136.32
March
136.32
142.09
April
142.09
147.02
May
147.02
145.49
June
145.49
145.56
July
145.56
152.98
August
152.98
153.97
September
153.97
152.49
October
152.49
163.07
November
163.07
164.91
December
164.91
172.52
Month
Open(₹)
Close(₹)
January
132.7
126.27
February
126.27
121.27
March
121.27
128.02
April
128.02
129.39
May
129.39
130.39
June
130.39
134.06
July
134.06
139.46
August
139.46
141.04
September
141.04
139.84
October
139.84
139.12
November
139.12
129.54
December
129.54
126.01
Month
Open(₹)
Close(₹)
January
122.58
129.43
February
129.43
132.42
March
132.42
134.59
April
134.59
126.9
May
126.9
132.51
June
132.51
132.83
July
132.83
137.33
August
137.33
133.58
September
133.58
134.46
October
134.46
135.13
November
135.13
131.14
December
131.14
132.7
Month
Open(₹)
Close(₹)
January
85.74
85.62
February
85.62
88.31
March
88.31
90.76
April
90.76
91.08
May
91.08
95.66
June
95.66
105.12
July
105.12
104.76
August
104.76
111.54
September
111.54
115.83
October
115.83
117.23
November
117.23
122.68
December
122.68
122.58
Month
Open(₹)
Close(₹)
January
73.47
74.55
February
74.55
72.32
March
72.32
72.43
April
72.43
72.42
May
72.42
74.08
June
74.08
74.5
July
74.5
74.27
August
74.27
74.37
September
74.37
77.06
October
77.06
81.18
November
81.18
81.7
December
81.7
85.74

What does Tata Ethical 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 Tata Ethical Fund Direct Plan Growth as on 30.09.2022 is 15.59.

Check Tata Ethical 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.