How was the NAV for Taurus Flexi Cap Fund - Direct Plan-Growth 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.

Taurus Flexi Cap Fund - Direct Plan-Growth Option NAV calculation:

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

Taurus Flexi Cap Fund - Direct Plan-Growth Option NAV History

Taurus Flexi Cap Fund - Direct Plan-Growth Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
151.76
156.38
February
156.38
147.84
March
147.84
158.65
April
158.65
157.15
May
157.15
148.15
June
148.15
137.35
July
137.35
154.43
August
154.43
160.96
September
160.96
-
Month
Open(₹)
Close(₹)
January
124.79
125.97
February
125.97
129.94
March
129.94
131.57
April
131.57
131.32
May
131.32
139.14
June
139.14
141.77
July
141.77
144.69
August
144.69
151.24
September
151.24
153.94
October
153.94
158.24
November
158.24
151.01
December
151.01
151.76
Month
Open(₹)
Close(₹)
January
116.5
116.12
February
116.12
109.59
March
109.59
80.43
April
80.43
93.54
May
93.54
92.62
June
92.62
97.42
July
97.42
102.88
August
102.88
105.4
September
105.4
106.44
October
106.44
107.35
November
107.35
116.95
December
116.95
124.79
Month
Open(₹)
Close(₹)
January
112.01
112.17
February
112.17
110.52
March
110.52
117.56
April
117.56
117.23
May
117.23
118.78
June
118.78
118.18
July
118.18
106.63
August
106.63
106.28
September
106.28
110.91
October
110.91
115.05
November
115.05
115.53
December
115.53
116.5
Month
Open(₹)
Close(₹)
January
121.2
122.57
February
122.57
117.56
March
117.56
113.76
April
113.76
119.54
May
119.54
113.35
June
113.35
113.21
July
113.21
119.81
August
119.81
122.8
September
122.8
112.96
October
112.96
107.69
November
107.69
111.88
December
111.88
112.01
Month
Open(₹)
Close(₹)
January
91.73
98.92
February
98.92
101.31
March
101.31
104.77
April
104.77
108.42
May
108.42
110.95
June
110.95
109.99
July
109.99
116.41
August
116.41
116.08
September
116.08
113.51
October
113.51
120.37
November
120.37
116.9
December
116.9
121.2
Month
Open(₹)
Close(₹)
January
90.68
85.12
February
85.12
78.34
March
78.34
84.99
April
84.99
85.75
May
85.75
89.55
June
89.55
92.7
July
92.7
97.45
August
97.45
98.88
September
98.88
98.05
October
98.05
99.4
November
99.4
92.4
December
92.4
91.73
Month
Open(₹)
Close(₹)
January
90.36
95.54
February
95.54
96.89
March
96.89
96.6
April
96.6
90.47
May
90.47
94.08
June
94.08
96.36
July
96.36
98.91
August
98.91
88.51
September
88.51
89.98
October
89.98
90.62
November
90.62
90.31
December
90.31
90.68
Month
Open(₹)
Close(₹)
January
64.98
61.1
February
61.1
63.13
March
63.13
67.59
April
67.59
67.81
May
67.81
75.58
June
75.58
80.5
July
80.5
79.34
August
79.34
84.01
September
84.01
84.38
October
84.38
87.4
November
87.4
91.99
December
91.99
90.36
Month
Open(₹)
Close(₹)
January
64.02
63.7
February
63.7
58.65
March
58.65
57.41
April
57.41
59.66
May
59.66
59
June
59
57.95
July
57.95
54.83
August
54.83
53.09
September
53.09
57.16
October
57.16
62.95
November
62.95
63.33
December
63.33
64.98

What does Taurus Flexi Cap Fund - Direct Plan-Growth 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 Taurus Flexi Cap Fund - Direct Plan-Growth Option as on 01.10.2022 is 9.66.

Check Taurus Flexi Cap Fund - Direct Plan-Growth 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.