For mutual fund purchases outside liquid and overnight schemes, getting the same business day's net asset value requires two things by 3 pm: the application must reach an official acceptance point, and the entire purchase amount must be available for use in the fund's bank account. A payment debit on your bank statement, by itself, does not establish the applicable NAV.
AMFI's official explanation applies this funds-realisation rule to purchases of every size, including SIP instalments and switch-in transactions. Its published framework took effect on 1 February 2021. The explanation below concerns those purchase rules, rather than the separate pricing conventions for liquid and overnight funds.
| Purchase situation | Applicable NAV |
|---|---|
| Application and usable funds both meet the 3 pm cut-off | Same business day |
| Application is timely, funds arrive too late | Subsequent business day when usable funds meet the cut-off |
| Funds are timely, application arrives after the cut-off | Subsequent business day under the acceptance rule |
Why does a purchase before 3 pm miss the same day NAV?
The clock on the order is only half the test. An instruction can be accepted at 2 pm while the money reaches the mutual fund after 3 pm. AMFI's official NAV applicability matrix says that the relevant price then shifts to the subsequent business day on which the money is available before the cut-off.
Consider a hypothetical Monday that is a business day for the scheme. The application is accepted at 2 pm, but the subscription reaches the fund at 4 pm. Monday's closing NAV does not qualify under this rule. If Tuesday is also a business day and the funds are available before 3 pm, Tuesday's closing NAV applies. The example assumes no other processing or eligibility issue.
The reverse also matters. Sending money early does not reserve a price if the purchase instruction arrives too late. AMFI states that when subscription money is credited first and the application follows, the date and time stamped on the application are considered. Investors therefore need the acceptance record as well as the payment record when checking an allotment.
Does the same cut-off rule apply to SIP instalments?
Yes. AMFI expressly includes initial purchases, additional purchases and SIP instalments, irrespective of investment amount. A scheduled SIP date tells you when an instalment is due to be collected. It does not remove the condition that the money must reach the mutual fund before the applicable cut-off to receive that day's price.
AMFI illustrates this with a Rs 5,000 instalment scheduled for the tenth of a month. The tenth's NAV applies only if it is a business day and the money reaches the mutual fund before 3 pm that day. Otherwise, the applicable NAV moves to the qualifying subsequent business day. That distinction can explain a difference between the debit date and the allotment date without assuming that either record is wrong.
A weekend or holiday can extend the calendar gap. The rule refers to business days, not simply the next date on the calendar. Avoid treating an illustration involving Monday as a guarantee that every Friday transaction receives Monday's price. The scheme's business-day calendar and actual receipt of usable funds still control.
How does the NAV change the number of units?
The basic arithmetic is units = amount available for allotment divided by applicable NAV. Suppose, purely for illustration, that Rs 5,000 is available for allotment after any applicable deductions. At an NAV of Rs 50, the calculation is 5,000 / 50 = 100 units. At an NAV of Rs 50.50, it is 5,000 / 50.50 = approximately 99.0099 units.
These are invented inputs used to show the calculation, not quotations for a scheme or predictions of returns. The direction can reverse if the later NAV is lower. Transaction timing does not offer a reliable way to predict the market, and a later allotment does not by itself prove a financial loss caused by an error.
For the underlying calculation, see our guide to mutual fund NAV. The separate SIP calculator explanation shows why assumptions about contribution timing affect a projection. Neither calculation overrides the actual NAV acceptance rules.
What should you check when the allotment looks wrong?
Compare the official application timestamp, bank debit confirmation, fund receipt information and allotment statement. Ask the transaction provider or fund to identify when the complete subscription became available for use. Keep the transaction reference alongside those records so that an enquiry concerns a specific instruction rather than an estimated payment time.
AMFI also distinguishes switch-out from switch-in. The former is treated as a redemption and the latter as a purchase; a switch can depend on a day being a business day for both schemes. Do not assume that moving between schemes gives both legs an identical NAV date. Redemption charges are another separate question, explained in our exit-load calculation guide.
This is a transaction-rule explainer, with AMFI's page checked on 8 November 2026. Check the scheme documents and the acceptance channel's operational instructions for your transaction. No fund choice, market-timing recommendation or return promise follows from the worked examples.
