What does NAV mean?
Net Asset Value (NAV) shows the performance of a particular scheme of a Mutual Fund. It represents the per share price of the fund on a specific date or time.
How does NAV help?
NAV helps identify potential investment opportunities within Mutual Funds. By calculating the NAV, you can view holdings in your portfolio.
How is NAV calculated?
NAV is calculated at the end of each trading day based on the closing market prices of the portfolio's securities, in accordance with SEBI Mutual Fund Regulations. The NAV can be calculated with the below formula:
NAV = (Assets - Liabilities) / Total number of outstanding units.
Which date’s NAV will be considered for the units allotted to me?
If the order is placed before the cut-off time, the units will be allotted based on that day's NAV—the date when the order was placed and executed.
However, if the order is placed after the cut-off time, the units will be allotted based on the NAV of the next working day, as the order execution occurs on the subsequent working day.
For Mutual Fund (MF) buy orders at Upstox, the cut-off time is until 2 pm (whereas it is 3 pm for SEBI).
Please note:
The purchase NAV date is determined by the date when funds are credited to the AMC, not the debit date.
For sell orders, the cut-off time is until 2.50 pm.
The cut-off time for mutual fund purchases set by the Securities and Exchange Board of India (SEBI) is indeed 3:00 PM. Upstox has a cutoff time of 2:00 PM for processing buy requests, which allows them to manage the final submission to the exchange by SEBI's 3:00 PM deadline, providing a buffer of 1 hour.
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which dates nav will be considered for the units allotted to me