Mutual Fund

Changes in Nav applicability rules effective 1st Feb 2021

This is with reference to the SEBI Circular No SEBI/HO/IMD/DF2/CIR/P/2020/175 dated 17.09.2020 regarding Uniformity in applicability of Net Asset Value (NAV) across various schemes upon realization of funds irrespective of the amount of investments.

As per the revised guidelines, the unit allotment will be done with NAV of the date of receipt of your invested money in the bank account of the Scheme/Fund and availability of the same for utilization by the fund. This rule is presently applicable to subscription value of Rs 2 lacs and above and the same is being extended to subscription value of ‘all amount’, from February 1, 2021.

For Liquid & Overnight Funds, the current practice would continue without any change.

Subscriptions / Systematic Investment Plan (SIP):

If you have submitted a subscription/SIP request (or have a running SIP) on or after 1st February 2021, the units will be allotted only on receipt of credit into the account of the Scheme/Fund before the cut off time, considering NAV of the credit realization date, irrespective of the mode of payment i.e. electronic transfer/cheque/auto debit mandate. Hence, for SIPs, there is a likelihood that the applicable NAV may not be the same as per your chosen SIP date. Receipt of funds after cut-off time will make the investment eligible for next

Switch/Systematic Transfers Plan (STP):

Switch/STP will also follow the same NAV applicability as mentioned above. For a valid switch out request received on a business day before (T day), the NAV applicability will be as under:

Switch OUT SchemeSwitch OUT NAVSwitch IN SchemeSwitch IN NAV
DebtT dayDebt / Equity / LiquidT + 1 or T+2 working day, based on the switch out settlement date as followed by the scheme
EquityT dayDebt / Equity / LiquidT + 3 working day

Categories: Mutual Fund

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