Mutual Fund cut-off time

Mutual funds have a cut off time for purchase and redemption. This time decides which day NAV will be allocated to you. The allotment of NAV for your purchase or redemption depends on the following parameters:-

• Transaction time - The time when you submit your application with the MF house.
     
• Money received - Which day NAV will be allocated to you also depends on whether money is received by the fund house or not. Units are allocated when the money is available with the fund for utilization.
     
• Transaction amount - NAV allocation also depends on the transaction amount in a single scheme. Allocation of NAV depends on whether the transaction amount is less than Rs. 2 lakhs or not.
      

There are different cut-off timings for liquid funds and equity or debt funds. You can be allocated NAV of previous day, same day or next day. Rules are different for liquid funds and equity or debt funds. Lets have a look at the cut-off timings.

Liquid Funds

Cut-off time for liquid mutual funds is 2 pm on a working day. Below are the rules only for liquid fund and not for any other fund, not even for ultra short term funds. These rules are applicable irrespective of transaction amount. Rules are same whether amount is less than Rs. 2 lakh or more.

Purchase or Switch-in

• If you invest before 2 pm on a working day and also transfer the funds by that time you will get the NAV of previous day. So, to get the NAV of previous day, amount need to be deposited in mutual fund's account by that time. For NEFT, it may take some time to transfer funds. So, it's advisable to have buffer time.
     
• If you submit the purchase application before 2 pm and transfer the funds after that time you will be allocated NAV of same day.
    
• If you submit the purchase application on a non-working day then it will be processed on the next working day like a transaction done before 2 pm and would be allocated NAV of the previous working day as it is before 2 pm for that working day.
      

Redemption

• In case of redemption, same day's NAV is allocated if redemption request is submitted before 3 pm.
     
• If application is submitted after 3 pm then next day's NAV will be allocated.
     

Equity and Debt Funds

Cut-off time for equity and other debt funds is 3 pm on a working day. Below are the rules defined by Securities and Exchange Board of India (SEBI).

Transaction amount less than Rs. 2 lakh

• If you do a transaction (purchase or redemption) before 3 pm then units are allocated on same day's NAV.
    
• In case you submit the application after 3 pm, you will be allocated units based on next day's NAV. For redemption also, next day's NAV will be allocated in this case.
     

Transaction amount of Rs. 2 lakh or more

• If you do a transaction (purchase or redemption) before 3 pm then units are allocated on same day's NAV. For purchase request, amount also needs to be deposited to mutual fund's account by that time. Applicable NAV shall be the closing NAV of the date of receipt of the transaction
    
• In case you submit the application after 3 pm and/or deposit amount to mutual fund's account after cut-off time (for purchase request), you will be allocated units based on next day's NAV.
    

NAV Applicability Tables

Source: https://invest.tatamutualfund.com/TTMFWebClient/faq.html

Table I: Applicable NAV Matrix for Purchase/Subscription Case

Case i: Business Day followed by Business Day

Scheme	Applicable Amount	Day	Cut-off Time	Time of Transaction	Applicable NAV	Important Condition
Liquid	All	T	1.55 PM	Upto 1.55 PM	T-1 (Historic)	Funds are credited to respective scheme account & available for utilization before cut-off time on T day, without credit facility.
Liquid	All	T	1.55 PM	Upto 1.55 PM	Closing NAV of the day immediately preceding the day on which funds are available for utilization	Funds are credited to respective scheme account & available for utilization after cut-off time on T day.
Liquid	All	T	1.55 PM	After 1.55 PM	T	Funds are credited to respective scheme account & available for utilization after cut off time on T day

Case ii: Business Day followed by Non-Business Day

Scheme	Applicable Amount	Day	Cut-off Time	Time of Transaction	Applicable NAV	Important Condition
Liquid	All	T	1.55 PM	Upto 1.55 PM	T-1	Funds are credited to respective scheme account & available for utilization before cut-off time on T day, without credit facility.
Liquid	All	T	1.45 PM	Upto 1.45 PM	Last Holiday NAV (NAV of next business day-1calendar day)	Funds are credited to respective scheme account & available for utilization after cut-off time on T day.
Liquid	All	T	1.55 PM	After 1.55 PM	Last Holiday NAV (NAV of next business day-1calendar day)	Funds are credited to respective scheme account & available for utilization after cut off time on T day

Case iii: Business Day followed by Business Day/Non-Business Day

Scheme	Applicable Amount	Day	Cut-off Time	Time of Transaction	Applicable NAV
All Non Liquid Schemes	Rs.2 lakhs & above*	T	2.55 PM	Upto 2.55 PM	NAV of the day on which the funds are realized up to 3.00 p.m
All Non Liquid Schemes	Up to Rs.2 lakhs	T	2.55 PM	Upto 2.55 PM	Applicable NAV shall be the closing NAV of the date of receipt of the transaction.
All Non Liquid Schemes	Rs.2 lakhs & above	T	2.55 PM	After 2.55 PM	Applicable NAV shall be the closing NAV of the next business day.

* Multiple investments (purchase including switch in) submitted by investor on same day for the same scheme, shall be aggregated at investor level (i.e. First holder / Sole Holder) for determination of Rs. 2 Lacs.

Table II: Applicable NAV Matrix for Redemptions

Scheme	Applicable Amount	Day	Cut-off Time	Time of Transaction	Applicable NAV	Important Condition
Liquid	All	T	2.55 PM	Upto 2.55 PM	T	If T+1 day is a business day
			2.55 PM	Upto 2.55 PM	Last Holiday NAV (NAV of next business day-1calendar day)	If T+1 day is a non business day
Debt/Special Debt	All	T	2.55 PM	Upto 2.55 PM	T
Equity/Special Equity	All	T	2.55 PM	Upto 2.55 PM	T

Table III: Applicable NAV Matrix for Switches

	Business Day followed by Business Day		Business Day followed by NonBusiness Day
Schemes	Switch Out Scheme	Switch In Scheme	Switch Out Scheme	Switch In Scheme
Special Equity to Liquid	Same Day	Day Prior to T+3 Business Day	Same Day	Day Prior to T+3 Business Day
Special Equity to Non-Liquid
<2 lakhs	Same Day	Same Day	Same Day	Same Day
>=2 lakhs	Same Day	T + 3 Business Day	Same Day	T + 3 Business Day
Equity to Liquid	Same Day	Day Prior to T+3 Business Day	Same Day	Day Prior to T+3 Business Day
Equity to Non-Liquid
<2 lakhs	Same Day	Same Day	Same Day	Same Day
>=2 lakhs	Same Day	T + 3 Business Day	Same Day	T + 3 Business Day
Debt to Liquid	Same Day	Day Prior to T+1 Business Day	Same Day	Day Prior to T+1 Business Day
Debt to Non-Liquid
<2 lakhs	Same Day	Same Day	Same Day	Same Day
>=2 lakhs	Same Day	T + 1 Business Day	Same Day	T + 1 Business Day
Liquid to Liquid	Same Day	Day Prior to T+1 Business Day	Day prior to Next Business Day	Day prior to Next Business Day
Liquid to Non-Liquid
<2 lakhs	Same Day	Same Day	Day prior to Next Business Day	Next Business Day
>=2 lakhs	Same Day	T + 1 Business Day	Day prior to Next Business Day	Next Business Day