You might know that while buying and selling stocks and shares, cut-off timing is the most important factor. But did you know that even mutual funds have cut-off timings? Although you can invest in mutual funds on any day and at any time of the year, the net asset value (NAV) of the fund may vary depending on the time you submit your application and money with the fund house. This time is the cut-off time in for mutual fund investment. So, it could be the NAV of the same day, previous day or the next day. The cut-off timings for liquid, debt and equity funds are different.
If you submit your application form for a liquid fund and also transfer the funds before 2 pm on a working day, it will be the NAV of the previous day. If it is done after 2 pm, it will be the NAV of the same day.
Equity and Debt Funds
The cut-off time is 3 pm for equity and debt funds. If you submit your application form and also transfer the funds before 3 pm, it will be the same day’s NAV. If it is done after 3 pm, it will be the next day’s NAV.