NEW DELHI :

According to the rules of the Securities and Exchange Board of India (Sebi), the net asset value (NAV) is attributed when the funds are realized by the fund companies before the prescribed time, i.e. before 3 p.m. However, there is no way for a regular retail investor to transfer money on any day so quickly that they reach it before 3pm. Even net or pre-programmed bank withdrawals, such as in systematic investment plans (SIPs), do not help. No investor can get the same day NAV, but they can try. Can you kindly suggest a way to overcome this problem?

—Name hidden on request

This is a problem that many investors face since the implementation of the Sebi share allocation rule after the completion of the funds. The rule is in the good spirit and in the best interests of investors. However, many SIP and flat-rate investors have faced a delay in allocating shares. As a rule, if the money is received in the fund account before the cut-off time, the units will be allocated on the basis of the net asset value of the day. If you invest directly through the AMC website or app, most AMCs are integrated with the big banks and can receive the funds immediately upon completion. If you are investing through a third-party website or an application based on the BSE or NSE platform, the cut-off time would be 2:30 p.m. due to operational requirements, but trades made before that cut-off time will work like investments made on a website. from AMC. If you want to invest in the last half hour before the 3pm cut-off time, you can try investing directly through AMC websites, it can help you get the allocation based on the net asset value of the day.

Harshad Chetanwala is the founder, MyWealthGrowth.com. You have questions ? Send an email to [email protected]

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