A lots of people don’t know that mutual funds have a cut-off time. cut-off time will not restrict to investor to buy or sell mutual funds in particular times. anyone can buy or sell mutual fund in any working day of the year. The cut-off time decided the NAV(Net Asset Value) you will get when you will buy or sell in a particular mutual fund scheme. An investor allocated the NAV depending on time when investor have applied for the mutual fund scheme and when fund house get the investor money. This time called the cut-off time of mutual fund scheme.

Liquid, Dept and Equity fund cut-off time

Different fund types Liquid,Dept and Equity funds having different cut-off time. Investor can allotted the NAV of previous day, same day or next working day. it will depend on the time what time investor have applied for mutual fund scheme and when fund get the money. cut-off time for the Equity, Dept fund is 3pm while cut-off time for liquid fund is 2pm.

Liquid Funds – you will apply in Liquid fund before the 2pm and transfer the money to fund before 2pm then that case you will get the NAV of the previous day or you will apply in a fund after 2pm then you will get the NAV of same day.
Note: you will applied in fund before 2pm but fail to send the money before cut-off time then you will not get NAV of previous day.

Equity and Dept Funds – cut-off time for Dept and Equity funds is 3pm. if you will applied before the 3pm then you will get the NAV of the same day or you will applied after the 3pm then that case you will get the NAV of next working days.

if investor want to invest Rs.2 lakhs or more than Rs.2 lakhs then that case investor need to make sure to transfer the money to mutual fund house before the cut-off time. if will not transferred then that case cut-off time rules will applied according to the time when fund house will get the money.

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