The Net Asset Value (NAV) assigned to your mutual fund order depends on when the order is placed, the payment mode used, and the type of fund you are investing in. The Securities and Exchange Board of India (SEBI) has established cut-off times to standardize NAV allocation and ensure transparency in mutual fund transactions.
How is NAV Determined?
1. Time of Order Placement and Payment Processing
The NAV applicable to your mutual fund order is not solely based on when you place the order but also on when the payment is successfully processed.
- If your payment is received before the cut-off time, you get the NAV of the same day.
- If your payment is received after the cut-off time, the NAV of the next business day is applied.
2. Type of Fund and NAV Cut-Off Timings
The cut-off times vary based on the category of mutual fund:
| Fund Type | Cut-Off Time | NAV Applicability |
|---|---|---|
| Liquid & Overnight Funds | Before 12:00 PM | Previous Day’s NAV |
| Liquid & Overnight Funds | After 12:00 PM | Same Day’s NAV |
| All Other Funds (Equity/Debt) | Before 2:00 PM | Same Day’s NAV |
| All Other Funds (Equity/Debt) | After 2:00 PM | Next Business Day’s NAV |
Impact of Payment Mode on NAV
The mode of payment plays a crucial role in determining when the transaction is considered complete:
| Payment Method | NAV Applicability |
|---|---|
| UPI (before cut-off) | ✅ Same-Day NAV |
| Net Banking (Select Banks: Axis, ICICI, HDFC, Yes Bank, SBI) before cut-off | ✅ Same-Day NAV |
| Net Banking (Other Banks) | ❌ Next Business Day NAV |
Since NAV is assigned based on when the payment is received, transactions made using UPI or specific banks’ net banking before the cut-off time ensure same-day NAV. Payments made via other banks’ net banking may experience a delay, leading to next-day NAV allocation.
What Happens if Your Order Falls on a Holiday or Weekend?
If your SIP instalment or mutual fund purchase order falls on a weekend or public holiday, it will be processed on the next business day, and the NAV of that day will apply.
For example:
- If you place an order on Saturday, the NAV assigned will be based on the next working day, typically Monday.
Why Might Your NAV Be Different from What You Expected?
Even if you place an order on time, NAV allocation may vary due to:
- Payment Processing Delays – If funds are not received by the mutual fund house before the cut-off, NAV may be shifted to the next business day.
- Bank Processing Delays – Payments made through non-partner banks take longer to process, leading to a change in NAV allocation.
- SIP & Auto-Debit Transactions – SIPs processed via AutoPay follow the expected NAV allocation, while those using BSE Mandates (Biller & One-Time) may experience delays of up to T+4 or T+5 business days.
NAV Cut-Off for Redemption, SWP & Switch Orders
- Redemption Orders: If you place a redemption request before 3:00 PM,
- Liquid/Overnight Funds: NAV of the previous business day is applied.
- Other Funds: NAV of the same day is applied.
- Switch & STP Orders: Since these involve both a redemption and reinvestment, NAV is assigned after the switch-out order is completed.
Key Takeaways
- Invest Early for Same-Day NAV – Place your order before the cut-off time (12:00 PM for liquid funds, 2:00 PM for other funds) to get same-day NAV.
- Use UPI or Select Bank Net Banking – This ensures faster processing and helps secure same-day NAV.
- Be Aware of Holidays & Processing Delays – Orders placed on weekends or public holidays will be processed on the next business day.
- Check Fund Processing Times – Payments through BSE Mandates may have extended processing times, impacting NAV allocation.
- Verify OTP for Redemption & Switch Orders – NAV is dependent on when you complete OTP verification.
By keeping these factors in mind, you can plan your mutual fund investments more effectively and avoid unexpected NAV delays.
The Net Asset Value (NAV) assigned to your mutual fund order depends on when the order is placed, the payment mode used, and the type of fund you are investing in. The Securities and Exchange Board of India (SEBI) has established cut-off times to standardize NAV allocation and ensure transparency in mutual fund transactions.
How is NAV Determined?
1. Time of Order Placement and Payment Processing
The NAV applicable to your mutual fund order is not solely based on when you place the order but also on when the payment is successfully processed.
- If your payment is received before the cut-off time, you get the NAV of the same day.
- If your payment is received after the cut-off time, the NAV of the next business day is applied.
2. Type of Fund and NAV Cut-Off Timings
The cut-off times vary based on the category of mutual fund:
| Fund Type | Cut-Off Time | NAV Applicability |
|---|---|---|
| Liquid & Overnight Funds | Before 12:00 PM | Previous Day’s NAV |
| Liquid & Overnight Funds | After 12:00 PM | Same Day’s NAV |
| All Other Funds (Equity/Debt) | Before 2:00 PM | Same Day’s NAV |
| All Other Funds (Equity/Debt) | After 2:00 PM | Next Business Day’s NAV |
Impact of Payment Mode on NAV
The mode of payment plays a crucial role in determining when the transaction is considered complete:
| Payment Method | NAV Applicability |
|---|---|
| UPI (before cut-off) | ✅ Same-Day NAV |
| Net Banking (Select Banks: Axis, ICICI, HDFC, Yes Bank, SBI) before cut-off | ✅ Same-Day NAV |
| Net Banking (Other Banks) | ❌ Next Business Day NAV |
Since NAV is assigned based on when the payment is received, transactions made using UPI or specific banks’ net banking before the cut-off time ensure same-day NAV. Payments made via other banks’ net banking may experience a delay, leading to next-day NAV allocation.
What Happens if Your Order Falls on a Holiday or Weekend?
If your SIP instalment or mutual fund purchase order falls on a weekend or public holiday, it will be processed on the next business day, and the NAV of that day will apply.
For example:
- If you place an order on Saturday, the NAV assigned will be based on the next working day, typically Monday.
Why Might Your NAV Be Different from What You Expected?
Even if you place an order on time, NAV allocation may vary due to:
- Payment Processing Delays – If funds are not received by the mutual fund house before the cut-off, NAV may be shifted to the next business day.
- Bank Processing Delays – Payments made through non-partner banks take longer to process, leading to a change in NAV allocation.
- SIP & Auto-Debit Transactions – SIPs processed via AutoPay follow the expected NAV allocation, while those using BSE Mandates (Biller & One-Time) may experience delays of up to T+4 or T+5 business days.
NAV Cut-Off for Redemption, SWP & Switch Orders
- Redemption Orders: If you place a redemption request before 3:00 PM,
- Liquid/Overnight Funds: NAV of the previous business day is applied.
- Other Funds: NAV of the same day is applied.
- Switch & STP Orders: Since these involve both a redemption and reinvestment, NAV is assigned after the switch-out order is completed.
Key Takeaways
- Invest Early for Same-Day NAV – Place your order before the cut-off time (12:00 PM for liquid funds, 2:00 PM for other funds) to get same-day NAV.
- Use UPI or Select Bank Net Banking – This ensures faster processing and helps secure same-day NAV.
- Be Aware of Holidays & Processing Delays – Orders placed on weekends or public holidays will be processed on the next business day.
- Check Fund Processing Times – Payments through BSE Mandates may have extended processing times, impacting NAV allocation.
- Verify OTP for Redemption & Switch Orders – NAV is dependent on when you complete OTP verification.
By keeping these factors in mind, you can plan your mutual fund investments more effectively and avoid unexpected NAV delays.
