Cut-Off Time
The deadline by which an application and its funds must reach a fund house to receive a given day's NAV.
How it is identified
Test: both the application and the cleared funds are received before the stated cut-off for that scheme type
Unit
qualitative
In depth
Since 2021 the rule in India is that NAV allotment depends on when the money actually reaches the fund, not merely when the application was submitted — a change that surprised many investors used to the older practice. The cut-off is 3:00 pm for most schemes and 1:30 pm for liquid and overnight funds, with the latter also allotting the previous day's NAV in some cases. For a redemption, the cut-off determines which day's NAV applies and therefore the amount received. Missing a cut-off simply moves the transaction to the next business day's NAV, which matters most when the market has moved sharply.
Worked example
An application submitted at 2:00 pm whose funds clear at 4:30 pm receives the next business day's NAV. If the market rose 2% that afternoon, the investor buys 2% higher than the screen suggested at the time of applying.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Cut-Off Time” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.