{"id":4196,"date":"2025-03-28T16:52:43","date_gmt":"2025-03-28T11:22:43","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=4196"},"modified":"2025-11-19T12:29:51","modified_gmt":"2025-11-19T06:59:51","slug":"what-is-the-mutual-fund-cut-off-time","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/mutual-funds\/what-is-the-mutual-fund-cut-off-time\/","title":{"rendered":"Mutual Fund Cut Off Time Explained: Meaning, Timings & NAV Impact"},"content":{"rendered":"

[vc_section el_id=”blog-inner-layout”][vc_row overlay_dotted=””][vc_column el_class=”blog_primary”][vc_row_inner][vc_column_inner][vc_column_text css=””]Investors can increase their wealth over time while investing in mutual funds. <\/span>Mutual funds <\/span>have certain technical aspects, which you need to know to maximise your returns. One of them is the <\/span>mutual fund<\/b> cut-off time<\/b>.<\/span><\/p>\n

A <\/span>cut-off time for mutual funds<\/b> determines whether the mutual funds’ investment or redemption request will be processed on Net Asset Value (NAV)<\/strong><\/a> on the same or the next day. Read this blog to learn about the cut-off time for different mutual funds, the new rules of SEBI regarding it and tips to ensure same-day NAV in mutual funds.<\/span><\/p>\n

<\/span>What is Mutual Fund Cut-Off Time?<\/b><\/span><\/h2>\n

A mutual fund cut-off time is the deadline set by mutual fund houses for processing purchase or redemption requests based on the applicable NAV (Net Asset Value). If a request is made before the designated cut-off time and the funds are realised by the AMC (Asset Management Company), the same day\u2019s NAV is applicable. If the request is made after the cut-off time or funds are not realised in time, the next business day\u2019s NAV will be applied.<\/span><\/p>\n

This mechanism ensures that all investors are treated fairly, and it prevents any arbitrage based on intra-day market movements. The cut-off timing varies depending on the type of mutual fund\u2014liquid, equity, or hybrid\u2014and whether the request is for purchase or redemption. Understanding cut-off timing helps investors better plan their investments and potentially maximise returns.<\/span><\/p>\n

<\/span>Cut Off Time for Different Mutual Fund Transactions<\/span><\/h2>\n

The significance of the cut-off period in mutual funds (MF) has diminished following the introduction of SEBI\u2019s new NAV rules. Mutual fund companies have allocated units starting on February 1, 2021. This means that if you fail to submit your application before the deadline, it will not be processed until the funds\u2019 realisation. The table below displays the cut-off timings for mutual fund transactions, including liquid funds<\/strong><\/a>, as well as other categories like debt and hybrid funds<\/a><\/strong>:<\/span><\/p>\n\n\n\n\n\n\n\n
Type of Funds<\/b><\/td>\nCut-Off Time in Indian Standard Time (IST)<\/b><\/td>\n<\/tr>\n
Liquid \/ Overnight Funds (subscription)<\/span><\/td>\n1:30 pm<\/span><\/td>\n<\/tr>\n
Liquid \/ Overnight Funds (Redemption)<\/span><\/td>\n3 pm<\/span><\/td>\n<\/tr>\n
All Other Funds (Subscription)<\/span><\/td>\n3 pm<\/span><\/td>\n<\/tr>\n
All Other Funds (Redemption)<\/span><\/td>\n3 pm<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

This <\/span>MF cut-off time<\/b> is a time during which you must perform your transaction request to buy or redeem mutual funds<\/strong><\/a> units. These requests need to be submitted to get the same day\u2019s NAV. If you make any requests after the cut-off time, the fund house will use the NAV of the next business day. The Securities and Exchange Board of India (SEBI) has established these cut-off timings and implemented them across various fund houses.<\/span><\/p>\n

It is also crucial to know that weekends and public holidays are considered non-business days for making mutual fund transactions. Any NAV will not be calculated or applied at this time.<\/span><\/p>\n

<\/span>SEBI’s New Rule for Mutual Fund Cut-Off Time<\/b><\/span><\/h2>\n

SEBI has mandated new regulations for <\/span>mutual fund cut-off time in India. <\/b>According to SEBI circular no. SEBI\/HO\/IMD\/DF2\/CIR\/P\/2020\/175 of September 17, 2020 and circular no. SEBI\/HO\/IMD\/DF2\/CIR\/P\/2020\/253 of December 31, 2020, the new rule of <\/span>mutual fund cut-off time<\/b> will be effective from February 1, 2021. The realisation and availability of money in the mutual fund’s bank account before the relevant cut-off times for buy transactions will determine the NAV from the purchase of mutual fund units, regardless of the investment amount.<\/span><\/p>\n

The introduction of new regulations by SEBI can make mutual fund transactions more uniform and streamlined. These are the new regulations:<\/span><\/p>\n