An investor submits an equity fund redemption request at 4:15 pm on a business day. Which NAV applies?
For redemptions in equity and non-liquid debt schemes, the cut-off is 3 pm. Requests after 3 pm get the next business day's NAV.
The concept: Cut-off times and the applicable NAV
The NAV you get depends on when the application reaches the fund's official point of acceptance (its time stamp) and, for purchases, when the money reaches the scheme.
Worked example
A distributor collects a redemption form at 2 pm but submits it at the AMC's office at 3:45 pm. The time stamp is 3:45 pm, so the next business day's NAV applies.