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The Securities and Exchange Board of India (Sebi) said in circular SEBI/HO/IMD/DF2/CIR/P/2020/253 dated December 31, 2020, that the same day applicability of NAV, which was earlier supposed to come into effect from January 1, 2021, has been pushed to February 1.

On September 17, Sebi had said that the same day net asset value (NAV) will be applicable on your mutual fund investments only if your money reaches the fund house on the same day. This change was earlier applicable from January 1, 2021. However, it has been pushed due to operational challenges being cited by the Association of Mutual Funds in India (Amfi).

Read more on Groww: https://groww.in/blog/mutual-fund-buying-rules-changed-same-day-nav-applicable/

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Hence, until then, Groww has reversed to the old NAV cut-off timings.

Here are the NAV cut-off timings are different for different categories of mutual funds. 

For Liquid Funds

If your order is placed on Groww by 12.55 p.m., you will get the previous day’s NAV for an order amount less than Rs 2 lakh. In case the order is placed after 12.55 p.m., you will get same-day NAV.

For Debt Funds and Conservative Hybird Funds

Amount less than Rs 2 lakh

If your order is placed on Groww by 3.00 p.m., you will get today’s NAV.  In case the order is placed after  3.00 p.m., you will get next day’s NAV.

Amount more than Rs 2 lakh

If your order is placed on Groww by 2.25 p.m., you will get today’s NAV.  In case the order is placed after  2:25 p.m., you will get next day’s NAV.

For Equity Funds

If your order is placed on Groww by 3.00 p.m., you will get today’s NAV.  In case the order is placed after  3.00 p.m., you will get next day’s NAV.

Here’s a quick snapshot of cut-off timings and NAV applicability:

 

Purchase
Scheme Type Groww BSE Cut-off
Liquid 12:55 PM
Debt/Hybrid Conservative —- Non Liquid > 2L* 2:25 PM
Others — Non Liquid > 2L* 2:25 PM
Debt/Hybrid Conservative —– Non Liquid < 2L 3:00 PM
Others. — Non Liquid < 2L 3:00 PM
*greater than 2 lakh is subject to availability of funds in Groww Balance
Redemption
Scheme type Groww BSE Cut-Off
Liquid 3:00 PM
Non Liquid – Debt / Hybrid conservative 3:00 PM
Non Liquid – Others 3:00 PM

What are cut-off timings in Mutual Funds?

Many investors get confused between trading hours and cut-off timings. While trading hours are the allotted periods for buying or selling mutual fund units, cut-off timings determine the Net Asset Value (NAV) at which you can buy or sell mutual fund units. Cut-off timings are different for different types of funds.

For all funds except liquid funds, if you buy/invest in a mutual fund before the cut-off timing, you can receive the NAV of the same day. 

In September, Sebi had added another clause. To get the same day’s NAV, your money should reach the AMC on the same day too. In case you made a transaction before the cut-off timing and due to some reason the money did not reach the fund house, you may get the next day’s NAV.

Read more on Groww: Mutual Fund Buying Rules Changed – Same Day NAV Applicable

Happy Investing!

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

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