Which date’s NAV will be considered for the units allotted to me?

Net Asset Value or NAV is the fund’s market value per unit. It is the total value of assets being managed in a Mutual Fund divided by the number of units of the Mutual Fund. You can think of it like the MRP of a product.

NAV is calculated at the end of each trading day. However, when you buy or sell Mutual Fund units, the NAV you get depends on when you place the order and when it is executed. 

For Mutual Fund Buy orders, the cut-off time is usually until 2 PM. For Mutual Fund Sell orders, it's until 2:50 PM.

If you place your order before the cut-off time, you'll receive units based on that day's NAV. But if it is after the cut-off time, you'll receive units based on the NAV of the next working day.

Please note: NAV will be determined based on the date when the funds are received by the Asset Management Company (AMC). If you choose payment methods other than Net Banking (Direct) or UPI, please note that you may not receive the same-day NAV. The duration for funds to be processed varies depending on the payment mode mentioned below.

Note: Here, T is the day on which the order was placed within the cut-off timings. Orders placed after the cut-off time are considered as orders of the next business day.
1. Direct (Net Banking): "Direct in Net Banking" denotes transfers where both you and the beneficiary, such as BSEStarMF, hold accounts with the same bank.
If the order is placed before the cut-off time i.e. 2 PM or 2:30 PM in case of a sell order, the units will be allotted based on that day's NAV—the date when the order was placed and executed.
Currently, BSE offers direct Net Banking services with 6 banks –

• Kotak Mahindra Bank
• HDFC Bank Limited
• ICICI Bank
• State Bank of India
• Axis Bank
• YES Bank
• IndusInd Bank

Note: Banks not listed above are categorized as Nodal Banks.  

2. Nodal (Net Banking): Nodal net banking in Mutual Funds is like a middleman between your bank account and your Mutual Fund investments. In this case if the Mutual order is placed NAV applicable will be dependent on the time when the funds are processed.

Understanding NAV and the associated timing is crucial for making informed decisions when buying or selling mutual fund units. While missing the desired NAV might not matter much for small investments, it can be significant for larger ones. However, since mutual funds are typically long-term investments, a slight difference in NAV shouldn't cause too much concern.

To know more, please refer to the Exchange circular here : SEBI circular