What are the cut-off timings for NAV in mutual funds?

According to the SEBI circular dated September 2017, mutual fund investors are to be given the NAV on the same that they place the trade. This means that the NAV that your trade will placed under will depend on the day of realisation of funds by the Asset Management Company (AMC). 


This was introduced by the SEBI to ensure uniformity in the applicability of the NAV across various mutual fund schemes. However, this also includes another metric that determines if your investment is eligible for that day's NAV and i.e. cut-off timings. 


These cut-off timings for mutual funds are predefined to identify when the funds were realised by the AMC. If an investor invests before the cut-off time then the AMC will realise the funds on the same day and you will be allocated units based on the same days' NAV. This was later implemented by the SEBI on the same day. 


But what happens if an investor misses the cut-off timing? If the cut-off timing deadline is missed by an investor then the AMCs will accept the order but the NAV applicable will be that of the following trading day. However, these cut-off timings may vary across different mutual funds. 


What NAV is applicable when you place a mutual fund order through Rupeezy?


When you place a lump sum or an SIP order on Rupeezy, your funds are transferred directly to the Indian Clearing Corporation ( ICCL ) via a payment aggregator. The NAV allocated is based on the date and time ICCL receives the funds. 


This is applicable for both the payment options i.e. UPI and NetBanking which are offered on Rupeezy for your convenience. However it is important to note that the cut-off timings also play a role when it comes to determining the cut-off timings for your NAVs. 


The cut-off time for investments for your mutual fund orders vary based on the type of mutual fund and the payment you use to buy.  The cutoff time to invest in Liquid and Overnight schemes is 12:30 PM, whereas the cut-off time for purchase orders in equity and other funds is 2PM when paid via UPI on Rupeezy.


Below are the complete details of cut-off timings of mutual funds investments which depends on the category of mutual fund and the payment that you use to invest.

Non-Liquid/Overnight Mutual Funds like Equity, Debt, Hybrid, etc.


Payment mode

Order type

Cut-Off Time

Applicable NAV

UPI

Lumpsum and SIP

2 PM

*T day

NetBanking (Direct Settlement Banks)

Lumpsum and SIP

2 PM

T day

NetBanking 
(Non-Direct Settlement Banks)

Lumpsum and SIP

12 AM to 11:59 PM

*T+1 day


*T day stands for Today,  T+1 is the day after today

Liquid and Overnight Mutual Funds


Payment mode

Order type

Cut-Off Time

Applicable NAV

UPI

Lumpsum and SIP

12.30 PM

*T - 1 day

NetBanking (Direct Settlement Banks)

Lumpsum and SIP

12.30 PM

T - 1 day

NetBanking 
(Non-Direct Settlement Banks)

Lumpsum and SIP

12 AM to 11:59 PM

*T day


*T day stands for Today,  T+1 is the day after today

Note: Here is the list of supported banks for direct and non-direct settlement banks


Now lets have a look at the cut-off timings for redemptions in mutual funds. 


The cut-off time for redemption orders is 3:00 PM. The NAV of T day will be applicable for redemption orders placed within the cut-off time. Exit load applicable for redemption can be checked on the Scheme Detail page of Rupeezy.

In Closing

Understanding what the NAV is how it is calculated for your orders is useful as it can avoid confusions that arise due to failure to meet cur-off times as investors would tend to expect the same day NAVs. Happy Investing!



Frequently Asked Questions

Q. Can I receive the redemption in my secondary bank account?
Ans: While you can use multiple bank accounts to invest in mutual funds, redemption amount is always sent to your primary account in Rupeezy.

Q. Does Rupeezy decide the cut-off timings of Mutual Funds?
Ans: Cut Off Timings are decided by the payment aggregator and the exchange platform Rupeezy leverages for investment. If the payment aggregator reports fund after above mentioned cut off time you will get next trading days NAV.