UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl Option Net Asset Value

NAV details of UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl Option:

UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl Option NAV Today(04.10.2022)
₹1098.60.04 %
Exit Load
0%

How was the NAV for UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl 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.

UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl Option NAV calculation:

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

UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl Option NAV History

UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl Option NAV Monthly History

Month
Open(₹)
Close(₹)
January
1109.66
1108.11
February
1108.11
1106.57
March
1106.57
1106.11
April
1106.11
1104.23
May
1104.23
1100.32
June
1100.32
1099.82
July
1099.82
1099.93
August
1099.93
1100.11
September
1100.11
1098.6
October
1098.6
-
Month
Open(₹)
Close(₹)
January
1098.85
1096.63
February
1096.63
1095.11
March
1095.11
1093.83
April
1093.83
1092.7
May
1092.7
1091.06
June
1091.06
1089.43
July
1089.43
1087.99
August
1087.99
1087.24
September
1087.24
1113.57
October
1113.57
1112.74
November
1112.74
1111.4
December
1111.4
1109.66
Month
Open(₹)
Close(₹)
January
1096.83
1098.09
February
1098.09
1094.22
March
1094.22
1094.91
April
1094.91
1096.65
May
1096.65
1099.94
June
1099.94
1101.26
July
1101.26
1101.51
August
1101.51
1100.4
September
1100.4
1099.74
October
1099.74
1099.88
November
1099.88
1099.86
December
1099.86
1098.85
Month
Open(₹)
Close(₹)
January
1115.4
1117.27
February
1117.27
1118.2
March
1118.2
1121.92
April
1121.92
1123.23
May
1123.23
1126.51
June
1126.51
1086.17
July
1086.17
1088.63
August
1088.63
1085.63
September
1085.63
1092.63
October
1092.63
1095.18
November
1095.18
1095.71
December
1095.71
1096.83
Month
Open(₹)
Close(₹)
January
1098.7
1097.78
February
1097.78
1097.22
March
1097.22
1099.56
April
1099.56
1098.9
May
1098.9
1099.7
June
1099.7
1101.66
July
1101.66
1104.73
August
1104.73
1106.63
September
1106.63
1106.45
October
1106.45
1108.32
November
1108.32
1111.15
December
1111.15
1115.4
Month
Open(₹)
Close(₹)
January
1092.44
1095.47
February
1095.47
1095.57
March
1095.57
1096.41
April
1096.41
1095.78
May
1095.78
1097.19
June
1097.19
1097.78
July
1097.78
1099.65
August
1099.65
1100.58
September
1100.58
1099.34
October
1099.34
1100.15
November
1100.15
1099.5
December
1099.5
1098.7
Month
Open(₹)
Close(₹)
January
1067.39
1067.82
February
1067.82
1067.26
March
1067.26
1074.03
April
1074.03
1076.33
May
1076.33
1078.19
June
1078.19
1079.91
July
1079.91
1084.46
August
1084.46
1086.56
September
1086.56
1088.47
October
1088.47
1090.5
November
1090.5
1095.15
December
1095.15
1092.44
Month
Open(₹)
Close(₹)
April
1047.1
1054.27
May
1054.27
1057.02
June
1057.02
1058.62
July
1058.62
1060.93
August
1060.93
1062.35
September
1062.35
1064.53
October
1064.53
1066.47
November
1066.47
1067.01
December
1067.01
1067.39

What does UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl 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 UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl Option as on 04.10.2022 is 5.25.

Check UTI - Ultra Short Term Fund - Direct Plan - Monthly Payout Inc Dist cum Cap Wdrl 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.