What is the Mutual Fund Cut-Off Time, and Why is it Important?

The mutual fund cut-off time is the deadline by which a purchase, redemption, or switch request must be received by the Asset Management Company (AMC). It determines which day's Net Asset Value (NAV) would apply to the transaction. 

Unlisted Mutual funds do not price their units continuously throughout the trading day, like a stock traded on the exchanges. Instead, they apply the closing Net Asset Value (NAV) of a business day based on the applicable cut-off time for the transaction. 

These cut-off timings are prescribed by the Securities and Exchange Board of India (SEBI) to promote fairness in unit allotment and redemption. To account for differences in how various mutual fund schemes operate, SEBI has prescribed one set of cut-off timings for liquid and overnight funds and another for equity-oriented funds and other debt schemes. (Source: SEBI FAQs released in September, 2024 , latest available as of August 10, 2026)

Read this article till the end to know about the latest mutual fund cut-off timings for 2026 (explained with easy examples).

Liquid funds and overnight funds follow a different cut-off schedule from other mutual fund schemes. The following two factors determine which day's NAV will apply to the transaction:

• The date and time when the transaction request is submitted 

+ 

• When the investment amount is credited to the AMC (in cases of purchase).

Let’s understand better through various scenarios (Source: SEBI FAQs released in September, 2024, latest available as of August 10, 2026) :

If you are investing in a liquid fund or an overnight fund, the mutual fund cut-off time is 1:30 PM. To better understand which NAV will be applicable, let’s study three different scenarios:

Case 1: Application submitted by 1:30 PM, and funds are available before 1:30 PM

If the AMC receives the investment request on or before 1:30 PM, and the investment amount is credited to the AMC's bank account before 1:30 PM (without using any credit or overdraft facility), then the investment gets the closing NAV of Day immediately preceding the day of receipt of application.

For example, 

• Application submitted on Monday at 12:30 PM.
• Money credited to AMC on Monday at 12:45 PM.

Now, the applicable NAV would be Sunday’s NAV.

Case 2: Application submitted after 1:30 PM, but funds are available on the same day

If the application is submitted after 1:30 PM, and the money reaches the AMC on the same business day, then the investment gets the closing NAV of the day immediately preceding the next business day.

For example, 

• Application submitted on Monday at 2:00 PM.
• Money credited to AMC on Monday at 2:15 PM.

Now, the applicable NAV would be Monday's NAV if Tuesday been a business day.

Case 3: Funds are not available for investment on the same day

If the money is not available for investment on the day the application is submitted, the submission time no longer matters. The investment receives the closing NAV of the day immediately preceding the day on which the funds become available for utilization.

For example, 

• Application submitted on Monday at 11:00 AM.
• Money credited to AMC on Tuesday.

Now, the applicable NAV would be Monday's NAV if Tuesday been a business day.

If you are redeeming units or switching from a liquid fund or overnight fund to another scheme, the mutual fund cut-off time is 3:00 PM. To better understand which NAV will be applicable, this time let’s study two different scenarios:

Case 1: Redemption request submitted by 3:00 PM

If the AMC receives the redemption request on or before 3:00 PM, the transaction is processed using the closing NAV of the day immediately preceding the next business day.

For example, 

• Suppose the redemption request is submitted on Monday at 2:30 PM.
• Now, the applicable NAV would be Monday's NAV if Tuesday been a business day.

Case 2: Redemption request submitted after 3:00 PM

If the redemption request is received after 3:00 PM, the transaction is processed using the closing NAV of the next business day.

For example,

• Suppose the redemption request is submitted on Monday at 4:00 PM.
• Now, the applicable NAV would be Tuesday's NAV if Tuesday been a business day.

In case application is received through online mode for overnight fund schemes, then the cut off time shall be considered as 7 PM instead of 3 PM for redemption / switch out of units made by the investor. 

For equity-oriented funds and debt funds (except liquid funds and overnight funds), SEBI has a single cut-off time of 3:00 PM for purchases, switch-ins, redemptions, and switch-outs. 

The applicable NAV depends on the time the transaction is received and, for purchases, when the investment amount becomes available to the AMC. To better understand the application of NAV, let’s again study different scenarios (Source: SEBI FAQs released in September, 2024, latest available as of August 10, 2026):

A) Purchase application submitted by 3:00 PM, and funds are available by 3:00 PM

If the purchase or switch-in request is received on or before 3:00 PM, and the investment amount is credited to the AMC's bank account before 3:00 PM, the transaction receives the closing NAV of the same business day.

For example:

• Suppose the application is submitted on Monday at 1:30 PM.
• The money is credited on Monday at 2:00 PM.

Now, the applicable NAV would be Monday's NAV.

B) Purchase application submitted after 3:00 PM

If the purchase or switch-in request is received after 3:00 PM & money is also credited to schemes bank account after 3:00 PM, the transaction receives the closing NAV of the next business day.

Example:

• Suppose the application is submitted on Monday at 4:00 PM.
• The money is credited on Monday at 4:10 PM

Now, the applicable NAV would be Tuesday's NAV if Tuesday been a business day.

C) Funds are not available by 3:00 PM

If the investment amount is not available for investment by 3:00 PM, the time of submitting the application does not matter. The transaction receives the closing NAV of the business day on which the funds become available for investment.

For example:

• Suppose the application is submitted on Monday at 11:00 AM.
• The money is credited on Tuesday at 10:00 AM,

Now, the applicable NAV would be Tuesday's NAV if Tuesday been a business day.

D) Redemption and switch-out (Mutual fund cut-off time: 3:00 PM)

For redemption and switch-out transactions, the applicable NAV depends only on the time the request is received.

For example:

• If the redemption request is submitted on Monday at 2:30 PM, Monday's NAV would be applicable.
• If the redemption request is submitted on Monday at 3:30 PM, Tuesday's NAV would be applicable if Tuesday been a business day.

So, now you know what the mutual fund cut-off time is and how it determines the NAV applicable to your investment. If we were to revise, SEBI has prescribed two sets of cut-off schedules:

• For Liquid and Overnight Funds:

  • The mutual fund investment cut-off time is 1:30 PM for purchase and switch-in.
  • The cut-off time is 3:00 PM / 07:00 PM (online for overnight fund) for redemption and switch-out.

• For Equity-Oriented Funds and Debt Funds (except Liquid and Overnight Funds):

  • The mutual fund investment cut-off time is 3:00 PM for purchases, switch-ins, redemptions, and switch-outs.

For purchase transactions, remember that submitting the application alone is not enough. The investment amount must also be credited to the AMC and become available for investment within the applicable cut-off conditions.

For more information, you can visit www.tatamutualfund.com/deshkarenivesh. The Investor Service Centre of Tata Asset Management Pvt. Ltd. is located at Mulla House, Ground Floor, 51, M.G. Road, Near Flora Fountain, Mumbai – 400 001, Maharashtra. The office hours are Monday to Friday, 9:00 AM to 5:30 PM. For assistance, you can also call (022) 6282 7777 from Monday to Saturday, 9:00 AM to 5:30 PM, or email service@tataamc.com

1. Does submitting my mutual fund application before the cut-off time guarantee the same day's NAV?

For purchase transactions, submitting the application before the cut-off time is only one requirement. To get the same day’s NAV, the investment amount must also be credited to the AMC within the applicable cut-off conditions. If the funds are received later, a different day's NAV applies.

2. Why did I receive a different NAV even though I invested before 3:00 PM?

This usually happens because the investment amount did not reach the AMC before the prescribed cut-off time. Sometimes, payment processing through banks or other intermediaries could delay fund realisation.

3. Does the cut-off time matter for SIP investments?

Yes, all the mutual fund cut-off timings are also applicable to an SIP instalment. If the SIP amount is not successfully debited and made available to the AMC within the prescribed conditions, the applicable NAV may differ from what was expected.

4. What happens if I place a mutual fund transaction on a holiday or after market hours?

If the transaction is submitted on a non-business day or after the applicable cut-off time, it is generally processed on the next day / business day.