Mutual fund NAV cut-off timings explained: Why investing or redeeming today doesn't always mean today's NAV

Placing a mutual fund order today does not guarantee that you will receive units at today's Net Asset Value (NAV). Under SEBI rules, placing the order is only one part of the process.

For purchase transactions, the applicable NAV depends not only on when the application is submitted but also on when the investment amount is credited to the mutual fund scheme's bank account.

Understanding this rule can help investors avoid confusion when they receive the units at a different NAV than expected. Here's what every investor should know.

Cut-off timing refers to the deadline on a business day that determines which day's Net Asset Value (NAV) will apply to a mutual fund purchase or redemption transaction.

If either condition is not met, the investment is allotted the NAV applicable on the next eligible business day. This rule applies uniformly across all investors and platforms.

For example, an investor may place an equity fund order at 2:50 PM, but if the bank credits the amount after 3 PM, the units will receive the next business day's NAV.

SEBI has prescribed separate cut-off timings depending on the category of mutual fund.

For equity, hybrid, and most debt schemes, the closing NAV of the day on which the funds become available before 3 PM is applicable. For liquid and overnight funds, purchases follow an earlier 1:30 PM cut-off.

Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative expression beyond the world of markets and numbers.

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