A step-by-step guide on how to get the same-day NAV for mutual fund investments

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A step-by-step guide on how to get the same-day NAV for mutual fund investments

Net asset value (NAV) is basically the value of a particular entity and is calculated as the total value of the entity’s assets minus the total value of its liabilities. It is commonly used as a per-share value calculated for a mutual fund, ETF, or closed-end fund. It is calculated at the end of each trading day based on the closing market prices of the portfolio’s securities.

How can one get same-day NAV for mutual fund investments

Mutual fund investors can now get a same-day net asset value (NAV), as per the new regulations released earlier this year. Here are few things an investor must keep in mind:

– The same-day NAV is only possible if both the application/transaction and the money reaches the mutual fund’s bank account before 3 pm on a business day for equity and debt funds.

-The application needs to be received before the cut-off time in the case of liquid and overnight funds.

– One must note that the funds are credited to the scheme account before the cut-off time on the same day, you will get the previous day’s NAV.

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– For all the applications and transactions received by the fund house after 1:30 pm on a day and funds are credited to the scheme account on the same day, will get the closing NAV of the same day.

– Earlier, i.e before February 1, all the NAV transactions up to Rs 2 lakh were exempt from this rule, which implied that if the application to an investor reached the official point of acceptance or fund house before 3 pm on a particular day, and the money funds the next day, the investor will get the closing NAV of the same day.

– Now, the threshold of Rs 2 lakh has been removed for all types of funds and the new rule has been extended to all categories, for all types of investment amounts.

– One can choose any mode of transaction, such as offline and online platforms, like exchange platforms, online channel partners and Mutual Fund Utility.

– Under the new NAV rules, transactions such as initial purchase, additional purchase and systematic investment plan, are considered. All the switch-in, systematic transfer plans and redemptions also fall under the purview of these rules.

– As per the new rule, any investor will be allotted the SIP units at the NAV for the same, only if the money is received/credited to the mutual fund’s bank account before 3.00 PM, on the same day. Otherwise, it will come the next business day.

What is the cut-off time for liquid and overnight funds

– The cut-off time for the redemption or the switches of NAV is before or at 3 PM.

– Similarly, the cut-off time for the subscriptions and the purchase of the NAV is 1 PM.

What is the cut-off time for equity and debt funds

– The cut-off time for the redemption or the switches of NAV is before or at 3 PM.

– On the other hand, the cut-off time for the subscriptions and the purchase of the NAV is 3 PM.