The NAV of Axis Long Term Equity Fund is the most sought after value among the mutual fund investor. There are many existing investors who want to know the Current NAV of Axis Long Term Equity Fund. Also, new investors want to know the NAV before the investment. However, it should not matter to them. Why? Will answer it later in the post.
But the NAV is very important for the existing investor. The growing NAV tells them that their investment amount is also rising. Fortunately, The NAV of Axis Long Term Equity Fund has given enough reason to celebrate.
So without delaying, I am presenting you the current NAV of different plans of Axis Long Term Equity Fund. I am fetching the data of NAV from the morningstar website. For the historical NAV and chart of Axis Fund, you can visit this site.
- 1 NAV of Axis Long Term Equity Fund Regular Growth
- 2 NAV of Axis Long Term Equity Fund Regular Dividend
- 3 NAV of Axis Long Term Equity Fund Direct Growth
- 4 NAV of Axis Long Term Equity Fund Direct Dividend
- 5 Why The NAV is different
- 6 Historical NAV of Axis Long Term Equity Fund
- 7 Does Low NAV Matter To New investors?
NAV of Axis Long Term Equity Fund Regular Growth
This is the regular plan. The NAV of this plan Would be slightly lower than the direct plan. As distributors get a commission from this plan, the NAV does not rise as much as of the direct plan.
Axis Long Term Equity Fund Regular Growth NAV –
NAV of Axis Long Term Equity Fund Regular Dividend
The NAV of the regular dividend plan would have the least value among all the four plans. It has least NAV becuase of the dividend and distributor commission outgo.
Axis Long Term Equity Fund Regular Dividend NAV
NAV of Axis Long Term Equity Fund Direct Growth
This plan has the highest NAV among the all plan of Axis Long Term Equity Fund ELSS. I would recommend to opt for this plan.
NAV of Axis Long Term Equity Fund Direct Dividend
This is also a direct mutual fund plan but the NAV of this plan would be lower because of the dividend outgo.
Why The NAV is different
You must be wondering why the NAVs of four plans are different. can’t they have the same NAV?
These plans can’t have the same NAV because these have a different expense structure. The regular plans deduct distributor commission from the corpus. Thus it results in reduced NAV.
Similarly, the dividend is given from the corpus of the fund. The NAV is reduced in the proportion of dividend payment.
Historical NAV of Axis Long Term Equity Fund
The historical NAV of the ELSS tells us the performance of Axis Long Term Equity Fund. By going through the chart of the NAV, you would assess the performance.
You can see the chart that year 2014 has been extremely good for the ELSS. This was the year when the market rose rapidly in the expectation of new government. However in 2015, the market remain subdued. Te effect is also visible in Axis Long Term Equity Fund.
Does Low NAV Matter To New investors?
Some months back on of my friend came to meet me. He wanted some suggestion on mutual funds. Actually, he has a list of schemes and wanted my opinion over it. Those selected funds were the new fund offer.
I talked to him and assessed his requirement. I suggested some different fund to him. He immediately checked those funds on his smartphone. Now he got puzzled. He said “the NAV of your suggested fund is already over 400. Is there any steam left to grow? I mean it is too costly”
Now I know why he wanted to invest in the new fund offer. He also expressed it.
” The fund I have told you is very cheap. I am getting one unit of them for Rs 10. It should have more scope to grow.”
Do you also think like my friend? If not, you are on the right path and you understand the concept of NAV.
But if you think similar, Please read the following situation.
Understanding NAV of NFO and Old Fund
Suppose, you wanted to buy some rose plant and go to the nursery. You have Rs 240. The gardener shows you 3 types of roses plants. The the first types of plants are very small and it can give only 2 flowers in a month, the second type of plants are of medium size and it can give 6 flowers in a month, The third type of plants are really big, it can give 24 flowers in s month. The prices of these flowers are Rs 20, 60 and 240 respectively.
Now you would see that how a single plant has the different prices. The biggest plant would have been of Rs 20 some time back. At that time, it would have been a small plant. But, now it has grown up and gives 12 times more flower than a small plant.
So what do you think? which plant do you choose? Would you buy 12 small plants, 4 medium plants or one big plant.
You would say that all the plants are similarly priced. The costing is done on the basis of their productivity. Hence, you can choose any of them? But did you consider the mortality rate? The small plant has more chances to die. These plants have yet to prove their potential. Whereas, the big plant is tried and tested. You can see its productivity.
Now consider a small rose plant as the one unit of a new fund which cost only Rs 10. On the other hand, consider the big plant as a unit of old mutual fund scheme. Which can have a price of Rs 400 or more.
NAV and Number of Units Not Important to New Investor
The one unit of a new fund can’t even buy a single ITC share. To buy two ITC share, about 50 units of an NFO is used. While One unit of Birla sun life tax relief 96 can but 2 ITC share. Thus, the profit from 2 ITC share is distributed among 50 units of NFO. While in the case of Birla sun Life tax relief it is given to one unit.
So neither NAV nor number of units matter to the new investor. Even, a new investor is not required to look at the NAV. Nav becomes important once you buy units of mutual fund. Because by comparing the value of NAV, you can calculate the return from your ELSS or any other mutual fund scheme.
Since, the Axis Long Term Equity Fund is a relatively new ELSS, It’s NAV is relatively low. It may be also one reason for the popularity. However, the Birla sun life tax relief- 96 and Franklin India tax shield are very old ELSS and they have high NAV. Still, They are one of the top equity linked saving scheme.