Mutual fund orders are not executed at a live, continuously changing price. Purchases and redemptions are processed using the applicable Net Asset Value, or NAV, determined under prescribed cut-off and fund-realisation rules.
The mutual fund cut-off time establishes which valuation day applies to a transaction. For purchases, submitting an order on time is only one part of the process. The money must also become available in the scheme’s bank account within the applicable cut-off.
Table of Contents
What is mutual fund cut-off time?
The mutual fund cut-off time is the prescribed deadline used to determine the applicable NAV for a purchase, redemption or switch transaction.
An order submitted before the cut-off does not receive an already known NAV. Mutual funds generally calculate their NAV after the relevant markets close. The cut-off establishes which valuation day will be used.
For a purchase, two conditions must be satisfied:
- The mutual fund must receive a valid transaction request before the applicable cut-off.
- The entire investment amount must be credited to the scheme’s bank account and available for use before that cut-off.
For a redemption, fund realisation is not relevant because the investor is selling existing units. The NAV is primarily determined by when a valid request is received and the type of scheme involved.
Key Takeaways
- The purchase and redemption cut-off for most equity, debt and hybrid schemes is 3:00 PM on a business day.
- Liquid and overnight fund purchases have an earlier cut-off of 1:30 PM and follow prior-day NAV conventions.
- For purchases, both a valid request and usable funds must reach the scheme within the applicable cut-off.
- SIP instalments follow the same fund-realisation rules as other purchases, so the scheduled date may not always be the NAV date.
- Eligible online overnight fund redemption requests have a 7:00 PM cut-off, while liquid fund redemptions retain the 3:00 PM cut-off.
Mutual fund cut-off timings at a glance
The current mutual fund cut-off timings differ by scheme category and transaction type:
| Scheme and transaction | Cut-off time | Applicable NAV |
| Purchase in schemes other than liquid and overnight funds | 3:00 PM | Closing NAV of the business day on which the valid order and usable funds are received before the cut-off |
| Purchase in liquid and overnight funds | 1:30 PM | Prior-day NAV rules apply based on application receipt and fund availability |
| Redemption from schemes other than liquid and overnight funds | 3:00 PM | Application-day NAV up to the cut-off; next-business-day NAV after it |
| Redemption from liquid funds | 3:00 PM | NAV of the day immediately preceding the next business day up to the cut-off |
| Redemption from overnight funds through offline modes | 3:00 PM | NAV of the day immediately preceding the next business day up to the cut-off |
| Redemption from overnight funds through online mode | 7:00 PM | NAV of the day immediately preceding the next business day up to the cut-off |
An online overnight fund redemption request received after 7:00 PM receives the next business day’s NAV. The extended timing does not apply to liquid funds or other scheme categories.
Source: SEBI Master Circular for Mutual Funds, 20 March 2026, paragraphs 9.4.2 and 9.4.3.
Purchase cut-off time for equity, debt and hybrid funds
For equity, hybrid, arbitrage and most debt schemes, the MF cut-off time for purchases is 3:00 PM on a business day.
The same business day’s closing NAV applies when both the valid purchase request and the investment amount reach the scheme before the cut-off. If either arrives later, the NAV of the next eligible business day applies, subject to both conditions being met.
The rule covers:
- Initial purchases
- Additional purchases
- Lumpsum investments
- SIP instalments
- Switch-in transactions
- Systematic Transfer Plan instalments
It applies irrespective of the investment amount or transaction channel.
Purchase cut-off time for liquid and overnight funds
Liquid and overnight fund purchases have a 1:30 PM cut-off and follow a different NAV convention.
Application and funds received by 1:30 PM
If the application and funds are received up to 1:30 PM on a business day, the applicable NAV is the closing NAV of the day immediately preceding the application date.
Application received after 1:30 PM
If the application is received after 1:30 PM but the funds were available by the cut-off, the applicable NAV is generally the NAV of the day immediately preceding the next business day.
Funds received after 1:30 PM
If the application is received on a business day but the money becomes available after 1:30 PM, the applicable NAV is the NAV of the day immediately preceding the business day on which the funds become available.
Because these schemes calculate NAV for every calendar day, describing the outcome merely as “same-day NAV” can be misleading.
How payment realisation affects the applicable NAV
Order placement and fund realisation are separate events:
- Order time: When the transaction request is successfully received and time stamped.
- Fund-realisation time: When the money reaches the scheme’s bank account and becomes available for use.
A debit from the investor’s bank account does not necessarily mean that the scheme can already use the money. Processing by the bank, payment system or investment platform can create a delay.
Example of fund realisation and NAV allocation
Venkat, a procurement manager from Jamshedpur, places a ₹25,000 purchase order in an equity mutual fund at 2:20 PM on Monday. His payment reaches the scheme’s bank account at 2:45 PM, so Monday’s closing NAV applies.
If the money had reached the scheme at 3:10 PM instead, the transaction would have received the NAV of the next business day on which the funds were available before 3:00 PM.
The figures shown are for illustrative purpose only
The fund-realisation rule has applied to all mutual fund purchases since 1 February 2021, irrespective of the amount or mode of transaction.
Source: AMFI, Cut-off timings and the rule on applicable NAV
How to improve the chances of receiving the same-day NAV
Submitting a request early can provide a buffer for payment and platform processing:
- Place the order comfortably before the applicable cut-off.
- Use a payment mode supported by the AMC for timely fund transfer.
- Check the transaction status rather than relying only on the bank-debit message.
- Maintain sufficient balance before an SIP instalment is presented.
- Verify bank-account and mandate details in advance.
- Check whether the investment platform has an internal deadline earlier than the regulatory cut-off.
- Avoid cheque payments for purchases where the NAV date is time sensitive.
A timely order improves the chances of receiving the intended NAV, but payment-system or bank delays can still affect fund realisation.
Cut-off time for SIP investments
Each SIP instalment is treated as a purchase transaction and follows the cut-off rules applicable to its scheme.
The scheduled SIP date’s NAV applies only when the instalment amount reaches the scheme within the required timeline. If the debit fails, is delayed or reaches the scheme after the cut-off, units may be allotted at the NAV of the next eligible business day.
If the SIP date falls on a non-business day, execution generally moves to the next applicable business day according to the scheme and mandate terms.
Investors do not need to place a fresh order before 3:00 PM for every registered SIP. They should maintain sufficient balance and ensure that the mandate remains active.
Cut-off time for redemption requests
For equity, hybrid and most debt schemes, the redemption cut-off is 3:00 PM on a business day:
- A valid request received up to 3:00 PM receives the application day’s closing NAV.
- A request received after 3:00 PM or on a non-business day receives the next business day’s closing NAV.
The applicable NAV date is different from the date on which the redemption proceeds reach the investor’s bank account. Payment follows the settlement timeline applicable to the scheme.
Exit load and taxes, where applicable, are separate from the cut-off rule and may affect the amount received.
Redemption rules for liquid and overnight funds
For liquid and overnight fund redemptions:
- A valid request received up to 3:00 PM on a business day generally receives the NAV of the day immediately preceding the next business day.
- A request received after 3:00 PM generally receives the next business day’s NAV.
An eligible online overnight fund redemption request can qualify for the earlier treatment if received up to 7:00 PM on a business day. A request received after 7:00 PM receives the next business day’s NAV.
This online extension, introduced through SEBI’s April 2025 circular and incorporated into the March 2026 Master Circular, applies specifically to overnight fund schemes.
Cut-off time for switch transactions
A switch between schemes of the same mutual fund contains two linked transactions:
- Switch-out: Treated as a redemption from the source scheme.
- Switch-in: Treated as a purchase in the destination scheme.
The switch-out follows the redemption rules of the source scheme. The switch-in follows the purchase and fund-availability rules of the destination scheme.
A switch is processed on the earliest day that qualifies as a business day for both schemes. The two sides may not always receive NAVs from the same valuation day, particularly when switching between a liquid or overnight fund and another scheme category.
The same principles apply to instalments under a Systematic Transfer Plan.
What happens on weekends and holidays?
An order submitted on a day that is not a business day for the scheme is considered according to the next applicable business day.
For purchases, the NAV also depends on when the money becomes available in the scheme’s account before the relevant cut-off. A payment initiated over the weekend does not guarantee Monday’s NAV if the funds reach the scheme after Monday’s cut-off.
Business days may differ for international schemes or schemes investing in markets with different holiday calendars. Investors should check the Scheme Information Document and relevant holiday notices.
Factors that can delay a mutual fund transaction
Several operational and payment-related issues can affect when an order is processed and which NAV applies:
Delayed fund transfer
The investment amount may be debited from the investor’s bank but credited to the scheme after the cut-off.
Platform processing time
An investment platform may use an earlier operational deadline so it can transmit the order and payment within the regulatory timeline.
Incomplete transaction details
A bank-account mismatch, invalid information or incomplete application can prevent an order from being treated as valid.
Failed or inactive mandate
Insufficient balance, an expired mandate or bank rejection can delay or prevent an SIP instalment.
Cheque-clearance time
For purchases made by cheque, NAV allocation depends on when the cheque proceeds become available to the scheme, not when the cheque is submitted.
Non-business days
Weekends, banking holidays and scheme-specific holidays can move processing to a later business day.
Why mutual fund cut-off time matters
Understanding the cut-off rules helps investors:
- Anticipate which valuation day may apply.
- Plan time-sensitive purchases or redemptions more effectively.
- Distinguish between order submission and fund realisation.
- Understand why an SIP date and NAV date may differ.
- Avoid assuming that a bank debit confirms unit allocation.
- Interpret switch and redemption transactions more accurately.
The cut-off does not indicate whether a particular day’s NAV will be favourable. It provides a uniform operational framework for determining which NAV applies.
Conclusion
The mutual fund cut-off time determines the applicable valuation day, but purchase orders also depend on when the scheme can use the investment amount. Most equity, hybrid and debt schemes follow a 3:00 PM cut-off, while liquid and overnight fund purchases have a 1:30 PM cut-off and distinct prior-day NAV rules.
SIPs and switch-ins are also subject to fund realisation. Redemptions depend on when a valid request is received, with separate provisions for liquid and overnight funds. Placing transactions early, maintaining an active mandate and checking the platform’s processing timeline can reduce unexpected changes in NAV allocation.
FAQs
What is the cut-off time for mutual fund investments?
The purchase cut-off is 3:00 PM for most equity, hybrid and debt schemes and 1:30 PM for liquid and overnight funds. A valid order and usable funds must meet the applicable timeline for the relevant NAV to apply.
Can I buy mutual funds after 3:00 PM?
Yes. A purchase order can be placed after 3:00 PM, but it will not qualify for that day’s NAV. The applicable NAV will depend on the next eligible business day on which the order and funds meet the prescribed conditions.
What is the mutual fund redemption cut-off time?
The redemption cut-off is generally 3:00 PM on a business day. For schemes other than liquid and overnight funds, a valid request received by then receives that day’s closing NAV, while a later request receives the next business day’s NAV.
What is the cut-off time for an equity mutual fund?
The cut-off is 3:00 PM for purchases and redemptions in an equity mutual fund. For purchases, both the valid order and the investment amount must meet the applicable conditions.
What is the cut-off time for an arbitrage fund?
An arbitrage fund generally follows the 3:00 PM cut-off applicable to schemes other than liquid and overnight funds. Purchase NAV allocation also depends on timely fund realisation.
What is the liquid fund purchase cut-off time?
The liquid fund purchase cut-off is 1:30 PM on a business day. Liquid fund purchases follow prior-day NAV conventions based on when the valid application and money reach the scheme.
Does an SIP have a cut-off time?
Yes. Every SIP instalment follows the purchase cut-off and fund-realisation rules applicable to its scheme. The scheduled date’s NAV applies only when the money reaches the scheme within the required timeline.
Why did I not receive the same-day NAV despite investing before 3:00 PM?
The most likely reason is that the funds reached the scheme after 3:00 PM. A purchase submitted before the cut-off does not qualify for that day’s NAV unless the money also becomes available within the prescribed timeline.
Can I know the NAV before placing a mutual fund order?
No. The final NAV for a business day is generally calculated after the relevant markets close. The latest NAV displayed while placing an order is usually from an earlier valuation day.
Do investment platforms have different cut-off timings?
A platform may prescribe an operational deadline earlier than the SEBI cut-off so that it can transmit the order and payment on time. Investors should check the platform’s current transaction instructions.
What happens if I invest in a mutual fund on Saturday or Sunday?
The order is considered according to the next applicable business day. For a purchase, the NAV also depends on when the funds become available to the scheme before the relevant cut-off.
Do mutual fund cut-off timings apply to switches?
Yes. The switch-out follows redemption rules, while the switch-in follows purchase and fund-realisation rules. Their applicable NAV dates can differ.
Does the 7:00 PM online redemption cut-off apply to liquid funds?
No. The 7:00 PM online cut-off applies specifically to eligible redemption requests from overnight fund schemes. Liquid fund redemptions continue to follow the 3:00 PM cut-off.
Do mutual fund cut-off timings apply to ETFs?
Exchange-traded ETF units are bought and sold at market prices during exchange hours. The standard mutual fund cut-off framework excludes transactions in mutual fund units undertaken on a recognised stock exchange. Direct transactions with an AMC in ETF creation-unit size follow separate intraday NAV provisions.
