I have ordered to buy UTI Equity Fund (Direct Plan- Dividend Reinvest Scheme) for ₹2,000 on Saturday night (12.12.2015) through the net. The price of each unit at that point of time was ₹78.8205. The purchase must have been completed during or before 12 PM on Monday (14.12.2015). But when I finally got the units I have been charged a price of ₹79.1642. This is Monday night's price (14.12.2015). I feel cheated by UTI Mutual fund. Whom should I complain?
- AKM
There is no need to complain as the fund house has not cheated you. It has just followed the legal procedure.
The official cut-off time is 3 pm for equity funds. If you are purchasing before 3 pm, the NAV of the same day would be applicable. For applications received after 3 pm, the NAV of the next business day would apply. This explains why you got Monday's NAV.
This article was originally published on December 16, 2015.
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