Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl Net Asset Value

NAV details of Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl:

Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl NAV Today(26.09.2022)
₹24.531.45 %
Exit Load
1%

How was the NAV for Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl 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 Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl NAV calculation:

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

Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl NAV History

Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
23.44
23.12
February
23.12
21.2
March
21.2
21.96
April
21.96
22.65
May
22.65
21.84
June
21.84
21.04
July
21.04
22.61
August
22.61
24.12
September
24.12
-
Month
Open(₹)
Close(₹)
January
13.59
13.7
February
13.7
15.34
March
15.34
16.16
April
16.16
16.58
May
16.58
18.56
June
18.56
19.96
July
19.96
21.58
August
21.58
21.39
September
21.39
22.11
October
22.11
22.68
November
22.68
22.61
December
22.61
23.44
Month
Open(₹)
Close(₹)
January
10.82
11.58
February
11.58
10.8
March
10.8
7.94
April
7.94
8.72
May
8.72
9
June
9
9.85
July
9.85
10.28
August
10.28
11.13
September
11.13
11.5
October
11.5
11.36
November
11.36
12.96
December
12.96
13.59
Month
Open(₹)
Close(₹)
January
10.36
10
February
10
10.04
March
10.04
10.75
April
10.75
10.58
May
10.58
10.81
June
10.81
10.65
July
10.65
9.74
August
9.74
9.88
September
9.88
10.26
October
10.26
10.62
November
10.62
10.84
December
10.84
10.82
Month
Open(₹)
Close(₹)
December
10.06
10.36

What does Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl’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 Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl as on 26.09.2022 is 26.11.

Check Tata Small Cap Fund Direct Transfer of Inc Dist cum Cap Wdrl 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.

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.