UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment Inc Dist cum Cap Wdrl Net Asset Value

NAV details of UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment Inc Dist cum Cap Wdrl:

UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment Inc Dist cum Cap Wdrl NAV Today(01.10.2022)
₹1250.80.05 %
Exit Load
0%

How was the NAV for UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment 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.

UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment Inc Dist cum Cap Wdrl NAV calculation:

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

UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment Inc Dist cum Cap Wdrl NAV History

UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment Inc Dist cum Cap Wdrl NAV Monthly History

Month
Open(₹)
Close(₹)
January
1244.2
1247.81
February
1247.81
1251.88
March
1251.88
1227.43
April
1227.43
1230.34
May
1230.34
1230.72
June
1230.72
1235.85
July
1235.85
1242.09
August
1242.09
1248.18
September
1248.18
-
Month
Open(₹)
Close(₹)
January
1190.71
1191.35
February
1191.35
1194.51
March
1194.51
1150.01
April
1150.01
1154.95
May
1154.95
1158.55
June
1158.55
1162.5
July
1162.5
1167.55
August
1167.55
1174.89
September
1174.89
1231.07
October
1231.07
1237.43
November
1237.43
1240.61
December
1240.61
1244.2
Month
Open(₹)
Close(₹)
January
1109.01
1115.31
February
1115.31
1122.09
March
1122.09
1127.24
April
1127.24
1133.41
May
1133.41
1148.23
June
1148.23
1159.82
July
1159.82
1167.4
August
1167.4
1171.42
September
1171.42
1175.23
October
1175.23
1181.97
November
1181.97
1187.08
December
1187.08
1190.71
Month
Open(₹)
Close(₹)
January
1205.24
1212.29
February
1212.29
1219.29
March
1219.29
1180.59
April
1180.59
1186.16
May
1186.16
1189.73
June
1189.73
1064.1
July
1064.1
1075.41
August
1075.41
1082.99
September
1082.99
1088.81
October
1088.81
1098.52
November
1098.52
1104.85
December
1104.85
1109.01
Month
Open(₹)
Close(₹)
January
1122.28
1127.26
February
1127.26
1132.67
March
1132.67
1141.56
April
1141.56
1144.84
May
1144.84
1150.35
June
1150.35
1158.05
July
1158.05
1167.45
August
1167.45
1174.51
September
1174.51
1179.08
October
1179.08
1186.02
November
1186.02
1194.91
December
1194.91
1205.24
Month
Open(₹)
Close(₹)
January
1046.03
1054.31
February
1054.31
1060.24
March
1060.24
1066.75
April
1066.75
1072.26
May
1072.26
1079.8
June
1079.8
1086.48
July
1086.48
1093.86
August
1093.86
1100.63
September
1100.63
1105.28
October
1105.28
1111.95
November
1111.95
1117.17
December
1117.17
1122.28
Month
Open(₹)
Close(₹)
January
1059.18
1059.18
February
1059.18
1059.18
March
1059.18
1059.18
April
1059.18
1059.18
May
1059.18
1059.18
June
1059.18
1001.88
July
1001.88
1011.27
August
1011.27
1018.6
September
1018.6
1025.51
October
1025.51
1032.79
November
1032.79
1042.7
December
1042.7
1046.03
Month
Open(₹)
Close(₹)
April
1030.03
1030.03
May
1030.03
1030.03
June
1030.03
1036.83
July
1036.83
1036.83
August
1036.83
1036.83
September
1036.83
1059.18
October
1059.18
1059.18
November
1059.18
1059.18
December
1059.18
1059.18

What does UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment 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 UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment Inc Dist cum Cap Wdrl as on 01.10.2022 is 5.22.

Check UTI - Treasury Advantage Fund - Direct Plan - Flexi Reinvestment 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.

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.