Do you know about cut-off timings in mutual funds?
Do you know that mutual funds have official cut-off time for investments and redemption? No, the cut-off time is not to restrict your purchases and selling of mutual fund units. The cut-off time determines what Net Asset Value (NAV) you get to buy or sell units of your mutual fund scheme. Simply put, the allotment of NAV depends on the time you submit your application and money with the fund house. This time is called cut-off time in the mutual fund world.
There are different cut-off timings for liquid, debt and equity funds. You can be allotted the NAV of the same day, the previous day or the next day according to the time you submit your application and funds.
The cut-off time is 2 pm for liquid funds. If you invest before 2 pm in a liquid fund, you will be allotted units at the NAV of the previous day. This will happen only if you also transfer the funds before the cut-off time. If you miss the cut-off time and submit your applicatio ..
Do you know that mutual funds have official cut-off time for investments and redemption? No, the cut-off time is not to restrict your purchases and selling of mutual fund units. The cut-off time determines what Net Asset Value (NAV) you get to buy or sell units of your mutual fund scheme. Simply put, the allotment of NAV depends on the time you submit your application and money with the fund house. This time is called cut-off time in the mutual fund world.
There are different cut-off timings for liquid, debt and equity funds. You can be allotted the NAV of the same day, the previous day or the next day according to the time you submit your application and funds.
The cut-off time is 2 pm for liquid funds. If you invest before 2 pm in a liquid fund, you will be allotted units at the NAV of the previous day. This will happen only if you also transfer the funds before the cut-off time. If you miss the cut-off time and submit your applicatio ..
If you submit your application before 2 pm, but fail to transfer the money before the cut-off time, you will not be eligible for the previous day’s NAV.
The cut-off time for equity and other debt funds is 3 pm. If the investor submits the application before 3 pm, she will get the same day’s NAV. Submitting the application after the cut-off time will get you the next day’s NAV. Unlike liquid funds, you do not need to transfer the funds before the cut-off time.
If you are investing more than Rs 2 lakh, you need to ensure that the funds and the application form are submitted with the mutual fund house before the cut-off time. Even if you apply before the cut-off time, the cut-off timing rules will be applicable on the basis of when your amount gets deposited.
The cut-off time for equity and other debt funds is 3 pm. If the investor submits the application before 3 pm, she will get the same day’s NAV. Submitting the application after the cut-off time will get you the next day’s NAV. Unlike liquid funds, you do not need to transfer the funds before the cut-off time.
If you are investing more than Rs 2 lakh, you need to ensure that the funds and the application form are submitted with the mutual fund house before the cut-off time. Even if you apply before the cut-off time, the cut-off timing rules will be applicable on the basis of when your amount gets deposited.
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