New cut-off timings for mutual fund purchase, redemption from today. Details here

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The Securities and Exchange Board of India (Sebi) has restored the pre-covid cut-off timings of mutual funds, effective 9 November, i.e., today. The timings will be applicable for both subscription and redemption transactions. Earlier this year in April, Sebi had reduced the cut-off timings of all mutual funds to 1 pm from 3 pm and for liquid and overnight schemes to 12.30 pm from 1.30 pm amid covid outbreak.

On October 19, Sebi restored the NAV cut-off timings for both subscription and redemption for all mutual fund schemes other than those categorised as debt schemes and conservative hybrid fund to 3.00 p.m. The current changes by Sebi brings back the cut-off time to 3 pm for debt and conservative hybrid funds as well.

Effective today, here are the cut-off timings for different mutual funds categories. Switch in from other schemes will follow the NAV cut-off timings applicable to subscription to schemes and, switch out to other scheme will follow the redemption timings.

Liquid funds and overnight funds

Subscription (purchase of mutual fund units) : 1:30 p.m.

Redemption (sale of mutual fund units) : 3:00 p.m.

Equity schemes and all other schemes (other than liquid funds and overnight funds

Subscription (purchase of mutual fund units) : 3:00 p.m.

Redemption (sale of mutual fund units) : 3:00 p.m.

How important are NAV cut-off timings in mutual funds?

For long-term investors, cut-off timings do not play a very crucial role. Even in the case of individuals investing a small sum of money, cut-off timings do not largely influence the profitability of the investment.

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