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)