Sign In

A Guide on How to Get the Same-day NAV Online for Mutual Fund Investments ​

Right from the little fluctuations in the prices of potatoes and onions to the bigger price differences in the value of cars and gold, Indians pay a lot of attention to the price of a product.And rightly so! The same notion is also applied when it comes to investing in mutual funds online. Many investors place their decisions to invest not just on their risk appetite, their financial goals, and the kind of schemes but alsoon the NAV of mutual funds.As a result, they are looking to get the same-day NAV value with an aim to get maximum benefit.Let us look at how this can be done.

What is the NAV of mutual funds?

The NAV or the Net Asset Value refers to the market value of the securities held by a mutual fund scheme after deducting liabilities like expenses and fees.

A lower NAV enables you to buy more units of a mutual fund. Similarly, when the NAV is higher, you get fewer units of the mutual fund. Let us consider an example where you have an SIP of Rs. 1,000 per month. If the NAV per unit is Rs. 10 in the first month, you will be able to purchase 100 units. However, if the NAV increases to Rs. 20 in the next month, you will only get 50 units.

Since the value of the SIP is pre-determined, the changing NAV value ultimately decides how many units of a mutual funds online scheme you can purchase per instalment.

How to purchase the same day NAV of mutual funds?

As per the circular issued by the Securities and Exchange Board of India (SEBI) dated September 17, 2020, there have been some new rules for the purchase of same-day NAV of mutual funds.

  • Equity and debt mutual funds online:To get the same-day NAV of mutual funds, you must submit the application and deposit the money to the mutual fund’s designated bank account before 3:00 PM on any business day. In the case of subscriptions, purchases, or redemption, the cut-off time is before or at 3:00 PM. If the mutual fund house receives the money after the cut-off time, the NAV of the next day will be applied.
  • Liquid and overnight mutual funds online: In case of liquid and overnight funds, the previous day’s NAV of mutual fundswill be applied if the transaction is carried out before the cut-off time. However, if you invest your money after the cut-off time, you will be given the NAV of the next business day minus 1 day.In the case of redemption or switch-outs, the cut-off time is before or at 3:00 PM. Meanwhile, for subscriptions or purchases, the cut-off time is 1:30 PM.

For all types of mutual funds, the money can be deposited to the mutual fund house’s designated bank account using any mode of transaction – online and offline.However, SEBI has also declared by way of regulations that even if you process the transaction before the cut-off time from your end, but the money does not reach the mutual fund house within the laid out cut-off time for any reason, then you will be allotted the units based on the time of day and time of credit receipt .

To sum it up

Although the NAV of mutual fundsis not the end-all and be-all of mutual fund investment, it plays a crucial role in determining your profits. So, being mindful of these rules can help you in your investment decisions and may be able to ensure better profits. You can also use a mutual fund SIP calculator to make well-informed investment choices.


​
Disclaimer:
Helpful information for investors: All Mutual Fund investors have to go through a one-time KYC (know your Customer) process. Investors should deal only with registered mutual funds, to be verified on SEBI website under 'Intermediaries/ Market Infrastructure Institutions'. For redressal of your complaints, you may please visit www.scores.gov.in . For more info on KYC, change in various details & redressal of complaints, visit mf.nipponindiaim.com/investoreducation/what-to-know-when-investing This is an investor education and awareness initiative by Nippon India Mutual Fund.

The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The document has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this document. Language Disclaimer:
While utmost care has been taken in translating the article into respective regional language(s), in case of any confusion or difference of opinion, article available in English language should be deemed as final. The article provided herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional advice for the readers. The document has been prepared on the basis of publicly available data/ information, internally developed data and other sources believed to be reliable. The sponsor, the Investment Manager, the Trustee or any of their directors, employees, associates or representatives (“entities & their associates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Entities & their associates including persons involved in the preparation or issuance of this material shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of loss of profits arising from the information contained in this material. Recipient alone shall be fully responsible for any decision taken on the basis of this article. "ABOVE ILLUSTRATIONS ARE ONLY FOR UNDERSTANDING, IT IS NOT DIRECTLY OR INDIRECTLY RELATED TO THE PERFORMANCE OF ANY SCHEME OF NIMF. THE VIEWS EXPRESSED HEREIN CONSTITUTE ONLY THE OPINIONS AND DO NOT CONSTITUTE ANY GUIDELINES OR RECOMMENDATION ON ANY COURSE OF ACTION TO BE FOLLOWED BY THE READER. THIS INFORMATION IS MEANT FOR GENERAL READING PURPOSES ONLY AND IS NOT MEANT TO SERVE AS A PROFESSIONAL GUIDE FOR THE READERS."

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.
  • CONNECT WITH US
Top