NAV allotment on MF switches will depend on the time the money reaches the scheme’s bank account.
From January 1, 2021, investors will get NAV once the money reaches the fund house irrespective of the investment amount.
Now, let us take a closer look on NAV applicability rules on switch transactions:
|
Scheme |
Switch out NAV |
Switch in NAV |
|
Equity Schemes |
||
|
Equity to equity (Change in plan i.e. from growth to dividend and vice versa) |
Same day |
Same day |
|
Equity to equity intra scheme |
Same day |
Realisation basis |
|
Equity to debt |
Same day |
Realisation basis |
|
Equity liquid |
Same day |
Realisation basis but previous day NAV if switch gets completed before cut off time |
|
Debt funds |
||
|
Debt to debt change in plan |
Same day |
Same day |
|
Debt to debt intra switch |
Same day |
Realisation basis |
|
Debt to equity |
Same day |
Realisation basis |
|
Debt to liquid |
Same day |
Realisation basis but previous day NAV if switch gets completed before cut off time |
|
Liquid funds |
||
|
Liquid to liquid |
Same day |
Same day |
|
Liquid to equity |
Same day |
Realization basis |
|
Liquid to debt |
Same day |
Realization basis |
While inter scheme switches generally happen in a day that too before cut off timing, at times, it gets delayed due to banking system. In such a scenario, the NAV allotment will depend on the time of realization of funds.
Similarly, even if an investor has given a standing instruction for SIP, systematic transaction will depend on realization of funds by fund houses.
