At the time of buying or selling mutual funds, one needs to take into consideration the applicable Net Asset Value (NAV). The NAV allotment is dependent on the time of application and fund submission. This time is referred to as the cut-off time.

The cut-off time varies for debt, equity and liquid funds.

For instance, in the case of liquid funds, the cut-off time is 2 pm. If someone invests in a liquid fund any time before this cut-off time, they will be allotted the NAV of the previous day.

If the application is submitted after 2 pm, then the NAV of the current day is applicable.

The Turn-Around-Time (TAT) for the redemption amount to be credited, the transaction date is of utmost importance and the cut-off time decides the same.