Disclosure of all possible payment options along with their efficiency

Pursuant to SEBI circular no. SEBI/HO/IMD/DF2/CIR/P/2020/175 dated September 17, 2020 read with circular no. SEBI/HO/IMD/DF2/CIR/P/2020/253 dated December 31, 2020, effective from February 1, 2021, the applicable NAV in respect of purchase of units of mutual fund scheme shall be subject to realization & availability of the funds in the bank account of mutual fund before the applicable cut off timings, irrespective of the amount of investment, under all mutual fund schemes. 

In this regard, the efficacy of various payment modes and the indicative cut-off time to get the same day’s NAV are given in Annexure 1 ( For Lump Sum Transactions - Non Liquid Schemes ) and Annexure 2 (For SIP Transactions) . Investors and intermediaries may please  note of the same and choose appropriate / efficient mode of payment

a. Annexure – A1: All the payment modes available for investors to make lump sum investment and their efficiency

b. Annexure – A2: All the payment modes available for investors for SIP investments

Funds realization-based NAV applicability for all MF investments effective 1 st February 2021

SEBI Circular SEBI/HO/IMD/DF2/CIR/P/2020/253 dated December 31, 2020 on Uniformity in applicability of Net Asset Value (NAV) across various schemes upon realization of funds.

Applicability -Purchase of mutual fund units including for other than liquid and overnight schemes i.e., Debt & Equity schemes - closing NAV of the day of fund available for utilization or timestamped date and time whichever later shall be applicable irrespective of the investment amount and scheme category.

Investors to take note of the following:

1. Unit allotment will be based on Funds available in Scheme accounts or timestamped date & time whichever is later - irrespective of schemes or threshold amount except for NFOs.

2. In case of NFO subscriptions, allotment date (as decided by the respective MF/AMC) will be considered irrespective of credit date / NFO application submitted on or before NFO closure date but credit should have happened on or before the prescribed NFO allotment date.

3. In case of switches into NFO schemes from the existing schemes, Switch-Out will be processed on the existing schemes based on time-stamped date and time, Switch-In units will be allotted only on NFO Allotment date (as decided by the respective MF/AMC)

4. Where funds are transferred first and application is submitted thereafter, time-stamped date and time will be considered for NAV applicability.

5. Actual debit in customer account may differ from date/time of Funds available for AMC Utilization and hence there may be difference in Trade Date of transaction

6. In case of systematic triggers, even investor opts for specific day of the week / month / quarterly / half-yearly / annual, actual trade date for each instalment will vary as funds available for AMC utilization may delayed due to various associated process and other stakeholders involved.

7. In case of cheques accompanied with the application, realization of funds will get delayed due to time required for cheque deposit, associated settlement system in banks and so on.

8. In case of online transactions, depending upon your bankers, there will be time-lag in the transfer of funds to MF scheme account and hence trade date will differ on case-to-case basis. Please click here, to understand the various payment modes, their efficiency and implication on the NAV allotment.

9. In case of cheque, realization time is dependent on RBI guidelines and investor bank's timelines, which is subject to changes.

10. Investors are advised to make use of digital/electronic payment made to get earliest NAV.