Will I never know the NAV of the MF I'm applying or redeeming?

[dawelek]

When I invest in a MF, the NAV date is same day or next day based on cutoff time. But for either of the days, I don't know the NAV.

I'll only come to know the NAV after 9 pm for same day NAV and next day 9pm if applied after cutoff.

Same is the case with redeeming.

E.g., If I'm investing in a mutual fund today before 2pm, I'll come to know today's NAV today at 9pm

Is my understanding correct?

 

[brothernature]

@dawelek Yes you won’t, primarily because your transaction is settled at EOD prices. The EOD prices take time because fund manager may buy/sell securities and needs to be reconciled before publishing the NAV.

 

[dawelek]

@brothernature Thank you very much

 

[timghost]

@dawelek However, you can track MF's benchmark. If the benchmark is up, the mf will most likely be up as well. Same about being down or flat.

Doing so removes the need of knowing what the nav might be as the nav will go up or down as well.

 

[resetpreacher]

@dawelek It is 11PM is what I read last time.

 

[dawelek]

@resetpreacher Thanks

 

[resjudicata]

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This post was mass deleted and anonymized with Redact

 

[dawelek]

@resjudicata Thank you

 

[dhollandhurley]

@dawelek ETF is a decent solution. But there too the market can dip or rise after you buy.

 

[dawelek]

@dhollandhurley After the transaction I'm OK. I'll explore etf thanks

 

[paints]

@dawelek Yes, you've got the right idea! When you invest in or redeem mutual funds, the Net Asset Value (NAV) is calculated at the end of the trading day. However, you won't know the exact NAV until it's published, which typically happens after 9 pm for the same day's NAV and the next day at 9 pm if you applied after the cutoff time. So, if you invest before the cutoff time, you'll find out the NAV for that day after 9 pm. It's the same deal if you're redeeming—you'll know the NAV for the day of redemption after 9 pm.

This means there's a bit of a waiting game when it comes to knowing the NAV, but it's all part of the mutual fund process. Just keep an eye out for updates after 9 pm, and you'll know where you stand with your investments!

 

[dunkin]

@dawelek You can get very close though. Kuvera allows same day NAV till 2.30pm which is pretty near market closing time

 

[resjudicata]

@dunkin Kuvera cannot have their own rules 'bro' they have to follow sebi guidelines lol.

 

[elliot44]

@dunkin Ignorance is not bliss. Same day NAV is allowed only for overnight & liquid funds.

The investment cutoff per SEBI is 1.30 am though for these funds. Brokers will have a earlier cutoff

 

[timghost]

@elliot44

Ignorance is not bliss. Same day NAV is allowed only for overnight & liquid funds.

The investment cutoff per SEBI is 1.30 am though for these funds. Brokers will have a earlier cutoff

This is incorrect.

https://www.amfiindia.com/investor-corner/knowledge-center/cut-off-timings.html

3pm is the cutoff for same day NAV for non-liquid and overnight funds for both redemption and subscription.

 

[mygisfy]

@dawelek thodi na 100 se 50 hone wala hai 4-5 ghante me

 

[dawelek]

@mygisfy Depends... a swing of 50k is possible when portfolio is in lakhs or crores

 

[demarcus507]

@dawelek And if one is worried about a swing of 50k with a portfolio in lakhs / crores, maybe it's not the best idea to invest in mfs.

 

[dawelek]

@demarcus507 Then what should you suggest?

 

[shadowflame]

@dawelek Maybe try mutual funds instead?