SEBI Revises Cut-off timings For Mutual Fund | BY Invest Therapy

The Securities and exchange board of India (SEBI) has resorted to the cut-off timing of mutual funds. That will be effective from 1 Jan 2021. The timing will be applicable for both subscription and redemption transactions. Earlier in the year, April 2020 SEBI has reduced the cut-off timing of all mutual funds from 1 pm to 3 pm and for overnight and liquid funds from 12:30 pm to 1:30 pm for Covid Outbreak.

Here are the cut-off timing for different Mutual funds categories. Switch into another scheme will follow the NAV cut-off timing which also applicable to a subscription to the scheme and switch out to another scheme will follow redemption timing.

This is applicable from 1st January 2021. However, the cut-off timing is different for different categories of the mutual fund.

For Liquid Fund:-

If you place an order by noon, you will get the previous day's NAV for an amount less than ₹2 lakh. In case the order is placed afternoon, you will get same-day NAV.

All Non-Liquid Fund:- 

If your order is placed by 2:00 p.m., you will get the same-day NAV for an order amount less than ₹2 lakh. In case the order is placed after 2:00 p.m., you will get the next day NAV.

Below is the table for revised NAV cut-off timing:-

What are the cut-off timing:- 

Many investors get confused between trading hours and Cut off Timing. While trading hours means to buy or sell mutual fund units, cut-off timings determine the Net Asset Value (NAV) at which you can buy or sell mutual fund units. Cut-off timing is different for different types of funds. For all funds except a liquid fund, if you buy or invest in a mutual fund before the cut-off timing you can receive the NAV for the same day. 

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