On Thursday, Sebi issued a mutual fund circular to change the NAV rules. From January 1, investors will get the purchase NAV of the day when investor's money reaches AMC. "It has been decided that with respect to the purchase of units of mutual fund schemes (except liquid and overnight schemes), the NAV will close for the day the funds are available for use regardless of size and time of receipt of these application funds ", indicates the captive circular.
The new NAV rules will not be applicable to liquid and overnight funds.
Here's the NAV that you will get on your funds:
- Investments up to ₹ 2 lakh: Currently, an investment of ₹ 2 lakh will receive the NAV on the same day if the order is placed before 1 PM, regardless of the realization of the funds. However, if the investment request is submitted after the downtime, the investor will receive the net asset value the following day.
- Investments over ₹2 lakh - Investors obtain the NAV on the day the funds arrive at AMC. Suppose you place an order to invest ₹ 3 lakh in a stock fund before 1 p.m. on Monday. If the investment amount reaches the mutual fund the next day, it will have Tuesday's NAV as of the net asset value of the purchase and not Monday.
- New rule: From January 1, all investments will fetch the NAV for the day when the funds reach the AMC, regardless of the size of the investment.
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Investment up to ₹2 lakh in debt funds other than liquid and overnight schemes: Currently, if the application is submitted before 1 pm, the investor will receive the NAV the same day, regardless of the realization of the funds.
- Investing more than ₹ 2 lakh in debt funds other than liquid and lakh schemes: Any application over ₹2 lakh submitted before the 1 PM cut-off time will receive the NAV corresponding to the day the funds reach AMC.
- New rule for debt funds other than liquid and remaining schemes: investors will receive the net asset value, subject to the realization of the funds. Therefore, the investor will obtain the NAV on the day the funds reach the mutual fund regardless of the size of the investment.
- Liquid funds and Overnight funds: Currently, the deadline for this category of debt schemes is 12:30 PM. And the investor will get the net asset value on the day the funds materialize or, we can say when the funds reach AMC.
- New rule: There are no changes in the rules for liquid and overnight funds. The same rules apply to the liquid and overnight funds.