Mutual Fund Cut-off Time: What You Need to Know

 

The cut-off time for mutual fund transactions is crucial as it determines the price at which your purchase or redemption will be processed. In India, mutual fund cut-off times vary depending on the type of fund—equity, debt, or liquid funds—and the transaction method, whether online or offline.

For equity and debt mutual funds, the cut-off time is typically 3:00 PM. If you submit your transaction before this time, the applicable Net Asset Value (NAV) is the one declared for the same day. However, if you submit the request after the cut-off, the NAV of the next business day applies.

For liquid funds, the cut-off time is earlier, at 1:30 PM. Transactions submitted before 1:30 PM will be processed based on the same day’s NAV. Submissions after this cut-off receive the NAV of the next business day.

It’s important to note that for purchases, the fund house must receive both the transaction request and the funds in their account by the cut-off time to be considered for the same day's NAV.

Understanding cut-off times helps investors make timely decisions, especially during volatile market conditions.