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Mutual Funds - Buying or Selling mutual funds? Your timing is important

11 May 2004

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Planning to buy or sell off mutual fund units and confused about the pricing or the NAV that will be applicable? Not to worry.

The Securities and Exchange Board of India (SEBI) keeping in mind consumer interest has come out with cut-off timings that can make things easier for you. Check out the following:

If you are planning to purchase units and if it is through a local cheque the cut-off timing is 3 pm which means you can be sure to get the NAV of the same day.

If the mutual fund office receives your cheque after 3.p.m note that the NAV of the next day will be applicable.

Also your application for purchase or redemption of units should be stamped on the back as well as on the face of it with the date, the serial number and the timing clearly mentioned.

In case yours is an outstation cheque and not payable at par at the place where it is received the closing NAV of the day on which the cheque is credited shall be applicable.

Also any loss in NAV due to delays caused will have to be made good by the AMC states SEBI and this is applicable to redemptions also.

In case of purchase of liquid schemes the cut off timing applicable shall be the closing NAV of the day immediately previous to the day on which funds are available for utilisation by the fund. If the AMC receives the application after 1 p.m. the NAV of the same day shall be applicable.

Similarly in case of redemption of liquid schemes, valid applications received up to 10:00 am, the previous day’s closing NAV shall be applicable and for valid applications received after 10:00 am, the same day’s closing NAV shall be applicable.

Besides mutual fund companies will soon have to state the average assets under management in their monthly reports as also the total number of investors.

Source: dwt BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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