What are mutual fund cut-off timings and NAV applicability?

Cut-off timing decides which day's NAV applies to your transaction. For most schemes the cut-off is 3 PM for both purchases and redemptions. Since 1 February 2021, the purchase NAV you get depends on when your money actually reaches the fund, irrespective of the amount, not just when you placed the order.

Key facts

For most schemes, the cut-off is 3 PM for both purchases and redemptions.
For liquid and overnight funds, the subscription cut-off is 1:30 PM and redemption is 3 PM.
Since 1 February 2021, purchase NAV depends on realisation of funds in the fund's account, for any amount.
Placing an order is not enough; the money must reach the fund before cut-off to get that day's NAV.

Cut-off decides your NAV day

Every transaction is stamped with an applicable NAV, and cut-off timing is the rule that decides which day's NAV that is. For most schemes the cut-off is 3 PM, for both purchases and redemptions. Liquid and overnight funds are the exception: their subscription cut-off is 1:30 PM, with redemptions at 3 PM.

An order placed after cut-off is simply processed for the next business day.

The realisation rule

Here is the part many investors miss. Since 1 February 2021, for a purchase you get the NAV of the day your money actually reaches the fund's bank account, before cut-off, irrespective of the amount. Placing the order is not enough; the funds must be realised.

So if you transfer money late, or a transfer takes a day to clear, you may receive a later day's NAV than you expected. Liquid and overnight funds already worked this way; the 2021 change extended it to all other schemes.

Do not over-think it

For a long-term investor, which single day's NAV you get almost never matters. It is worth understanding so a transaction is not delayed by surprise, not something to optimise. If a specific purchase or redemption timing matters to you, talk to us and we will help you plan it.

Frequently asked questions

What is the mutual fund cut-off time?

For most schemes it is 3 PM, for both purchases and redemptions. For liquid and overnight funds, subscriptions have a 1:30 PM cut-off and redemptions 3 PM. Transactions after cut-off are processed for the next business day.

Do I get the NAV of the day I invest?

Only if your money reaches the fund's bank account before the cut-off. Since 1 February 2021, the applicable NAV for a purchase depends on realisation of funds, for any amount. If the money is realised later, you get that later day's NAV.

Does the realisation rule apply to liquid funds too?

Liquid and overnight funds already followed a realisation-based rule before February 2021, and their specific timings continue. The 2021 change extended the realisation principle to all other schemes, regardless of the investment amount.

This is general information, not a recommendation for your situation. If it would help to talk it through, we are happy to. Talk to Nico Wealth.

The information on this website is general and educational. It is not financial, tax, or legal advice, and not a recommendation for your situation. We try to keep it accurate and up to date, but it may contain errors or become outdated. Please verify important details from official sources, and consider your own circumstances, before acting.

Sources

Last verified: 2026-08-11

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