NAV Cut-Off Time Rules for Mutual Fund Purchases

For a mutual fund purchase, the NAV you get depends on when the money reaches the scheme’s bank account, not when you click Buy. In equity, debt and hybrid funds, money credited by 3 pm on a business day gets that day’s closing NAV. Liquid and overnight funds have an earlier 1:30 pm cut-off, and both the order and the money must arrive by then.

Key facts

These rules sit in paragraph 9.4 of SEBI’s Master Circular for Mutual Funds, updated on 20 March 2026 for the SEBI (Mutual Funds) Regulations, 2026, which took effect on 1 April 2026. The timings themselves did not change with the new regulations. For how funds work in general, see what a mutual fund is and how it works.

How applicable NAV is decided for purchases

Since 1 February 2021, the NAV for every purchase depends on when the money is realised, whatever the amount. SEBI’s circular of 17 September 2020 made this change. Before that, the rule applied only to purchases of ₹2 lakh and above and to liquid and overnight funds. The Master Circular sets three conditions for a purchase to get a given day’s NAV:

• the application is received and time-stamped at an official point of acceptance before the cut-off;
• the full amount is credited to the scheme’s bank account before the cut-off; and
• the money is available for the scheme to use without any credit facility.

If you place an order at 11 am but the bank transfer reaches the fund house at 4 pm, you get the next business day’s NAV. If the money arrives first and the application later, AMFI says the time-stamp on the application decides the NAV. The fund house must compensate you for any loss caused by its own delay in crediting funds.

SIP instalments

Each SIP instalment is a purchase and follows the same rule. AMFI’s example: for a SIP dated the 10th, you get the 10th’s NAV only if the money is credited to the fund’s account before 3 pm that day. If the debit lands later, the units are allotted at the next business day’s NAV. A small gap in NAV dates is normal and does not mean the instalment failed. To plan the amounts themselves, use the SIP calculator.

New fund offers

During a new fund offer (NFO), units are allotted at the face value to every valid application received by the close of the offer, provided the money is realised before allotment.

Cut-off for equity and debt funds

For all schemes other than liquid and overnight funds, the cut-off for the money to reach the scheme’s account is 3 pm. The closing NAV of the day the funds become available applies, whatever the size or time of the application.

The examples assume Tuesday and Wednesday are both business days. Cheques and demand drafts take longest, because the NAV waits until the instrument clears and the money is credited. Online payments usually reach the fund faster, but the platform, payment route and bank all add time.

Liquid and overnight fund cut-offs

Liquid and overnight funds use an earlier 1:30 pm cut-off for purchases, and they apply the NAV of the previous calendar day. The Master Circular sets three cases:

Buying at the previous day’s closing NAV means your money starts earning on the day you invest. Money that misses Friday’s cut-off usually gets Sunday’s NAV, the day before Monday, so it earns nothing for Friday, Saturday and Sunday. For these two fund types, a business day excludes any day the money markets are closed.

Holidays and weekends

For schemes other than liquid and overnight funds, an application made any time on a non-business day gets the next business day’s NAV. The same applies when the money is credited on a holiday. Each scheme’s Scheme Information Document defines its business days, so check it if you invest around a festival or a bank holiday.

For liquid and overnight funds, SEBI’s definition matters more: a business day does not include a day when money markets are closed or not accessible. A request made just before a long weekend can therefore be priced several calendar days later than you expect.

Redemption and switch cut-offs

For redemptions, the time-stamp on your request decides the NAV. No money has to move first.

A switch is two transactions. The switch-out follows the redemption cut-off of the scheme you leave, and the switch-in follows the purchase cut-off of the scheme you enter. The amount switched in equals the redemption proceeds of the switch-out. So a switch into a liquid fund can land on a different NAV date from the switch-out. Payout timelines and exit load are covered in our guide on how to redeem a mutual fund.

How to check which NAV you got

1. Open the transaction confirmation sent by the fund house or registrar after allotment.
2. Note the NAV date and NAV per unit shown against the transaction.
3. Compare the time-stamp on your order with the time your bank shows the debit.
4. If the NAV date looks wrong, ask the platform for the time the funds reached the fund house.
5. Raise the issue with the fund house or registrar if the funds were credited before the cut-off and you still got a later NAV.

Frequently asked questions

What is the NAV cut-off time for mutual fund purchases?

3 pm for most equity, debt and hybrid funds, and 1:30 pm for liquid and overnight funds. The money must reach the scheme’s account by then, not just your order.

Which NAV applies if I buy after 3 pm?

The next business day’s NAV, for schemes other than liquid and overnight funds. A purchase on a weekend or holiday also gets the next business day’s NAV.

Does the ₹2 lakh rule still apply?

No. Since 1 February 2021, the NAV for every purchase, of any amount, depends on when the funds are realised.

Why did my SIP get the next day’s NAV?

The instalment money probably reached the fund’s account after 3 pm on the SIP date. The units are then allotted at the next business day’s NAV.

Is the 7 pm cut-off available for liquid funds?

No. The 7 pm cut-off applies only to online redemption requests in overnight funds. Liquid fund redemptions keep the 3 pm cut-off.

Do cut-off rules apply to ETFs bought on the stock exchange?

No. SEBI’s cut-off rules exclude mutual fund units traded on a recognised stock exchange, which trade at market prices during market hours.

Does the switch-in get the same NAV date as the switch-out?

Not always. Each leg follows its own scheme’s cut-off, and the switch-in follows purchase rules, so the dates can differ.

Sources

• Master Circular for Mutual Funds, 20 March 2026 (para 9.4, cut-off timings) — SEBI (checked 16 Sep 2026)
• Change in cut-off timings for redemption in overnight schemes, circular dated 22 April 2025 — SEBI (checked 16 Sep 2026)
• Cut-off timings and new rule on applicable NAV — AMFI (checked 16 Sep 2026)