Recently, I have come across a lot of this kind of questions online where people are enquiring about the cut off timings and how it will impact their investments.
So in this post, I’ll highlight the official cut-off time for investments as well as for redemptions.
The cut-off time only comes into play in deciding which day’s NAV to use to allocate/redeem units of a particular mutual fund scheme.
There are different cut-off times for equity, liquid and debt schemes.
The cut-off time for this kind of funds is 2 pm. So, if you invest in a fund before 2 pm, the units will be calculated on the previous day’s NAV and assigned to you provided you also transfer the funds before 2 pm. But if you miss the cut-off time and submit your funds after 2 pm, then the units will be allotted on the basis of the NAV of the same day.
Also Read: Tips to start investing in Mutual Funds
Equity & Debt funds:
The cut-off time for this kind of funds is 3 pm. So, if you invest in a fund before 3 pm, then the units will be calculated on the same day’s NAV but if you submit the application after 3 pm, then the units will be allotted based on the next day’s NAV.
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