Skip to main content

SEBI Changes NAV Applicability Rules

Securities and Exchanges Board of India has brought in new rules for NAV (net asset value) applicability for mutual fund schemes below Rs. 2 lakh.

From January 1, 2021, purchase of units in a mutual fund scheme will get the NAV of the day on which money reaches the fund house, not of the day investors place the order, SEBI said in its recent circular. Please view the circular details here.

However, the regulation will not be applicable to liquid and overnight funds as for schemes above Rs. 2 lakh and liquid and overnight funds already had this norm in place.

"It has been decided that in respect of purchase of units of mutual fund schemes (except liquid and overnight schemes), closing NAV of the day shall be applicable on which the funds are available for utilization irrespective of the size and time of receipt of such application. The existing provision on NAV applicability for liquid and overnight funds and cut-off timings for all schemes shall remain unchanged," SEBI said in a circular.

In case of NFO subscriptions, allotment date will be considered, irrespective of credit date & application submission date.

When an investor wishes to switch into NFO from an existing scheme, the switch-out will be processed on existing schemes. Switch in will be allotted on the day NFO subscriptions are allotted.

For online transactions, there may be a time lag in transfer of funds from investors’ account to the AMC account and hence may differ from case to case basis.

Comments

Post a Comment

Popular posts from this blog

म्यूचुअल फंड इंडस्ट्री का एसेट बेस अक्टूबर में 22.23 लाख करोड़ पहुंचा, SIP से आया 7985 करोड़ का निवेश

म्यूचुअल फंड के एसेट बेस में इजाफा हुआ है. म्यूचुअल फंड के अंतर्गत संपत्ति अक्टूबर के अंत तक बढ़कर 22.23 लाख पहुंच गई. म्यूचुअल फंड के एसेट बेस में इजाफा हुआ है. म्यूचुअल फंड के अं...
Post a Comment
Read more

Mutual fund Recommendations: HDFC Small Cap

  What Equity fund investing predominantly in small-cap stocks Why Promise in small-cap segment post market correction and new categorization Maintains a low portfolio churn and contains downsides well Who High-risk investors with a minimum 5-year perspective HDFC Small Cap is a recent addition to our Select Funds list. With a 1-year loss of 0.5%, the fund is among the few small-caps whose 1-year returns aren’t deep into the negative zone. The Nifty Smallcap 100 index has lost 28% in the past year. From the January 2018 high, the index is down 38%. This is a far cry from the phenomenal 61% gain in 2017. Even considering that HDFC Small Cap has held up in this correction, why are we recommending a small-cap fund at this point? Small-cap potential We had so far refrained from stepping up small-cap recommendations even with the rally. The heady rise in small-cap stocks over 2016 and 2017 even when larger stocks were correcting and without match...
Post a Comment
Read more

Why dont Mutual Funds give a fixed rate of return like a saving account or FD?

The returns in a Mutual Fund portfolio are a function of many things, like the avenues one has invested in, the way various markets move, the ability of the fund management team, and the investment period. Since many of these factors are uncertain, the returns cannot be guaranteed, unlike a fixed deposit where these factors are absent, at least to some extent. With a fixed deposit – the returns are FIXED only for a FIXED period. These returns and the period, both are decided by the issuer company and not by the depositor. Hence, if one wants to invest money for six years and a deposit is available for five years, the returns are known only for the first five years, but not for the entire six-year period. Thus, the investment returns are known only in case of guaranteed return products, where the product maturity and investor’s time horizon are matching perfectly. In all other cases, the investment returns are unknown over the investor’s investment horizon.
Post a Comment
Read more