NISM Series V-A, Chapter 5. Updated Jun 2026, 7-minute read.
NAV Calculation and Cut-off Times for Mutual Funds
NAV applicability and cut-off times are among the most frequently examined topics in NISM Series V-A. Getting this wrong costs marks — the rules are precise and SEBI-mandated.
Key takeaways
- NAV = (Total Assets − Liabilities) / Outstanding Units — declared daily for all open-ended schemes
- Liquid/Overnight Funds cut-off: 1:30 PM — invest before 1:30 PM to get same-day NAV
- All other funds (debt, equity, hybrid): cut-off 3:00 PM for transactions ≤ ₹2 lakh
- Transactions ≥ ₹2 lakh in any scheme: funds must be realised before cut-off for same-day NAV
- SIP transactions always get the NAV of the SIP date, regardless of time
- Exit Load is deducted from redemption NAV before paying investor
NAV Calculation
NAV = (Market Value of Investments + Receivables + Accrued Income − Liabilities − Accrued Expenses) / Number of Outstanding Units
NAV is calculated at the end of each business day using closing market prices. SEBI requires AMCs to declare NAV by 11 PM on the same business day.
SEBI Cut-off Times (as of 2025)
| Fund Type | Cut-off Time | Transaction ≤ ₹2 lakh | Transaction > ₹2 lakh |
|---|---|---|---|
| Liquid Funds | 1:30 PM | Same-day NAV if before 1:30 PM | Next business day NAV (funds must be realised) |
| Overnight Funds | 1:30 PM | Same-day NAV if before 1:30 PM | Next business day NAV |
| All Other Funds (Debt/Equity/Hybrid) | 3:00 PM | Same-day NAV if before 3:00 PM | NAV of day funds are realised (T+1 or later) |
Key rule for large transactions (>₹2 lakh): The investor gets the NAV of the day on which the funds are realised in the AMC's account — not the date of the transaction instruction.
Exit Load
Exit load is a charge levied when units are redeemed within a specified holding period (to discourage short-term trading).
- Deducted from NAV: Redemption Price = NAV × (1 − Exit Load %)
- Liquid funds: No exit load after 7 days (graded exit load for days 1–7)
- Equity funds: Typically 1% if redeemed within 1 year
- Exit load collected goes back to the scheme (not to the AMC)
Frequently asked questions
If I place a redemption order for an equity fund at 4 PM, which day's NAV do I get?
Since equity funds have a 3:00 PM cut-off, an order placed at 4 PM will be processed at the next business day's NAV.
Do SIP investments follow the same cut-off time rules?
SIP (Systematic Investment Plan) transactions are processed at the NAV of the SIP date, regardless of whether the order is processed before or after the cut-off time on that date — as long as the bank mandate is successfully executed.
Written by Arpan Das.