Cut-off Time / NAV Date — Mutual Fund Term Explained

The deadline by which your transaction must be received to get that day's NAV. Typically 3:00 PM IST for most equity funds.

The cut-off time determines which day's NAV applies to your transaction. For equity and hybrid funds: requests received before 3:00 PM on a business day get the same day's NAV. For liquid and overnight funds: cut-off is 1:30 PM.

Requests after 3:00 PM get the next business day's NAV.

Related terms

• NAV (Net Asset Value) — The price of one unit of a mutual fund, calculated daily from portfolio value minus liabilities divided by units outstanding.
• Redemption — Selling mutual fund units back to the fund house. Proceeds credited to your bank in T+1 to T+3 business days.
• Liquid Fund — A debt fund investing in money market instruments with maturity up to 91 days. Very low risk, T+1 redemption, returns better than savings accounts.

Browse the full mutual fund glossary, or see this concept in action in the fund screener.