In online purchases, money reaches the mutual fund instantly and it is also acknowledged. Yet, when I invest more than ₹2 lakh online and before the cut-off time, I do not get the same day's NAV. Is there an assured way of knowing when exactly the units will be allotted?
- Jagadish Chandhar S R
The cut off time for same day NAV is 3.00 pm for equity and other debt schemes and 2.00 pm for liquid schemes. All transactions before the cut off time will be eligible for same day's NAV, except non-business days. For transactions post the cut off time, NAV of the next business day will be applicable.
For purchases for more than ₹2 lakh in equity and debt schemes (other than liquid schemes), the closing NAV of the day on which the funds are available for utilization shall be applicable.
The movement of funds from your bank account to the scheme's bank account happens via an intermediary or aggregator through a shadow bank account. The process followed by the aggregator and the time lines within which the funds are credited into the scheme's bank account is within the time lines provided by RBI which is T+3 settlement cycle / business days, where T is the date of Transaction/ day of intimation regarding completion of transaction. This means often the money is available to the scheme for utilisation only after a day or more, and that is the reason why you did not get the same day's NAV.
This article was originally published on November 18, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
