NAV will no longer be the the date of purchase for mutual funds?

[incognitoburrito]

@russellmanofgod Not really - its is done to a payment clearing common account. not individual AMC account. and that would still need to reconciled end of day. but this really needs clarity on implementation from SEBI.

 

[matt86]

@megusta This is irrelevant now... npci is doing daily settlement now which means all npci modes nach upi etc.. done before 5 pm gets credited same day if you are doing direct investment in mf account

 

[cathy100]

@matt86 Sorry friend but you couldn't be more wrong here. This still remains very relevant. NPCI tries to clear the fund on same day after it receives them, that need not be the same as the day on which a user actually places an order in a mutual fund.

Just try placing a Lumpsum order in a liquid fund using NACH mandate (from a platform that supports the same). You would notices that liquid fund order would take 2-3 days to get processed as Liquid funds even now give allotment only after funds settle. Usually, after an NACH mandate based deduction request is initiated by a platform it gets executed by bank on T+1, it would likely reconcile with the platform by T+2. UPI can still be same day but then UPI has a daily limit of 1 Lakh. Also, I never use UPI as a payment mode for investing as UPI in general has a terrible failure rate.

Also, cut off for mutual funds is not 5 PM. Depending on fund type it remains between 1-3.

 

[rjj4321]

@megusta Never try to time the market. It hardly works!!!

I don't use MFs at all, but this looks like your investment decisions will be impacted if you're looking at market conditions to invest. You might end up getting the allocation when the fund recovers several points. I understand your concern.

I generally speak against looking at market conditions to "invest". The best time to invest is always in the past.

Maybe switch to ETFs? You get instant assurance of what you want out of the investment. Totally biased opinion because I hold ETFs only.

Have an allocation plan and stick to it. Be consistent and regular in your investments. Works for almost everyone, might just work for you too.

Just my $0.02

 

[incognitoburrito]

@megusta What is really needed - clarity wrt implementation overall. leaving it open like maybe T+1 day NAV or if reached AMC account then todays NAV is all not bounded.

1) Will the SIPs get affected at all. who knows at what hour the SIP is done for each of the different banks.

2) What is the timeline in which if Transaction done at various aggregators - RTAs - Individual AMC web interface/apps would be provided same day NAV - for each of these.

SEBI's Implementation of all this is not clear and we would need to find answers from SEBI.

Maybe a SEBI scores complaint..

 

[zashmaster]

@megusta There have been many comments and the opinions are varied.

A crucial point though. The title given by OP need not be taken as such. It is not that the NAV would always be delayed. It is just that the trigger for allotment has been changed from purchase order to receipt of payment. This was discussed in an earlier thread too.

If you are making a 'lumpsum' investment there are many ways to ensure that everything happens in the same day. In the typical SIP cycle though, there could be a delay of a day; but then this should hardly matter in the philosophy of rupee cost averaging.

Just visit any CAMS or Kfintech office at 2.50 PM to really see the number of people who are trying to meet the 3 PM timestamp.

 

[naila]

@megusta Hi All - So far I have been paying using e-Mandate using Kuvera, mostly less than 2 lakh order before cut off time. And I get the bank debit next day. This would mean I won't also get the same day NAV? When I use e-Mandate think my money routes through BSE Star.