For investments in liquid and overnight funds, transactions made before 1:30 pm can receive the previous business day’s NAV, subject to fund realisation before the cut-off
For overnight fund redemptions, investors can use the online redemption facility until 7 pm Investment timing affects mutual fund Net Asset Value (NAV).Most funds: 3 pm cut-off for same-day NAV if funds realized.Liquid/overnight funds: 1:30 pm cut-off for previous day’s NAV.Did our AI summary help? Market MasteryWebinar by Vishal Malkan Find the weak linksin your portfolio by Vishal Malkan Register for FREE Webinar Register for FREE
Timing can matter when you invest in a mutual fund. While investors often focus on the amount they are putting in or the scheme they are choosing, the time at which the money reaches the mutual fund house can determine which Net Asset Value (NAV) applies to the transaction.For most mutual fund schemes, investors who place an investment request before 3 pm can get the same-day NAV, provided the funds are actually realised and credited to the mutual fund house’s account before the applicable cut-off. Investments made after 3 pm generally receive the next business day’s NAV, subject to the same fund-realisation requirement.The mode of payment can also matter. For NEFT and RTGS transactions, the applicable NAV is determined based on when the funds are actually credited to the Asset Management Company (AMC), rather than simply when the investor initiates the transfer. Similarly, UPI payments made before 3 pm can qualify for the same-day NAV, provided the funds are realised by the AMC before the cut-off.However, investors in liquid and overnight funds need to follow a different timeline. The cut-off for these schemes is 1:30 pm.Also read: New ETF trading rules take effect today: What changes for investorsFor investments in liquid and overnight funds, transactions made before 1:30 pm can receive the previous business day’s NAV, subject to fund realisation before the cut-off. Transactions after 1:30 pm generally receive the same-day NAV.There is also a special weekend consideration. If funds for liquid or overnight funds are received after 1:30 pm on Friday, or on Saturday or Sunday, the Sunday NAV applies.For overnight fund redemptions, investors can use the online redemption facility until 7 pm. Thus, it is worth noting that placing an order before the cut-off is not enough. The money must also reach the AMC within the applicable timeline for the relevant NAV to apply.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.