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How To Know Liquid Funds Cut-Off Time

Don’t know what’s the cut-off time for buying and selling liquid funds? This blog has the answer! Find out the latest SEBI rules for liquid funds cut-off time.

Priya Bansal

Liquid funds have a Net Asset Value (NAV) just like stocks have a share price. The NAV determines the price of a single unit or share of the liquid fund. It is known to change every day due to market volatility. 

As you can tell, the NAV of a liquid fund is important. It’ll dictate the money you’ll have to pay to buy units of the liquid fund. Furthermore, liquid funds NAV will determine the gains you’ll receive by selling the fund. 

Does this mean you can buy or sell liquid funds for the same NAV throughout the day? Not really. There’s something known as liquid funds cut-off time that’ll decide what NAV you get and when. 

What Is Mutual Fund Cut-Off Time In India?

A mutual fund cut-off time determines the NAV at which you can buy or sell units of a fund before a certain time during the day. The cut-off time is 3 PM for buying and selling at the same-day NAV for most mutual funds. 

But the cut-off time for buying liquid funds and overnight funds is different. You can buy units of a liquid fund or overnight fund for the same day NAV if you place an order before 1.30 PM. 

Let’s say you placed a buy order at 1.25 PM on Monday. Then, you’ll get the same-day NAV for the purchase. However, you’ll get the next day’s NAV if you’ve missed the 1.30 PM cut-off time for liquid funds.

There is another caveat to this. You’ll get Monday’s NAV for your transaction if you’ve missed the 1.30 PM cut-off time for liquid funds on Friday. That’s because Saturday and Sunday are not business days. 

SEBI New Rule For Mutual Fund Cut-Off Time

The liquid funds cut-off time that you see above was introduced by SEBI in early 2021. Back in April 2020, SEBI had pulled back the mutual funds cut-off time due to the pandemic. 

At the time, the cut-off time for mutual funds was as follows.

However, SEBI published a new circular on September 17, 2020, that brought back the old cutoff time for mutual funds with minor tweaks, effective from February 1, 2021.

Why Is Mutual Fund Cut-Off Time Important?

Liquid funds cut-off time and in general, mutual funds cut-off time can be important based on the type of investor you are. Minor fluctuations in the NAV of a liquid fund may not be a big concern to long term investors. 

By association, the cut-off time of liquid funds may not matter to a long term investor. However, the case would be different for those investing a substantially large sum of money. 

Even a relatively lower NAV is known to be useful when dealing with large volumes of mutual fund units. Other than that, investors looking to benefit from a sudden event in the market may also look to beat the cut-off time. 


1. What is the cut-off time for liquid fund redemption?

Liquid funds redemption cut-off time in India is 3 PM, which means that you can place a redemption order before that to get the same-day NAV. SEBI had briefly changed this to 12.30 PM due to the pandemic but has reverted it to 3 PM since 1st February 2021. 

2. How much return does a liquid fund give?

Top liquid funds like the ones on Cube are known to outperform the average bank savings account and give returns between 3-4% over a period of 3+ months.

3. How much interest do we get in liquid funds?

Broadly, liquid funds are known to compound and give up to 3-4% returns over the short term. This is, as you can tell, relatively better than the average bank savings account and certain FDs. 

4. Is it the right time to invest in liquid funds?

There are benefits to investing in liquid funds. They are known to be relatively safer than other mutual funds and give solid returns between 3-4%. That’s not all. 

Liquid funds can also be redeemed comparatively quickly than equity funds. In fact, Cube gives you access to the Cube ATM feature that allows you to withdraw money instantly from your Nippon India Liquid fund investment. 

5. What is the cut-off time for a mutual fund?

Mutual funds have a cut-off for buy and sell orders that determine the price or NAV of the fund you can get before a certain time during the day. You won’t be able to buy or sell a mutual fund for the same-day NAV if you exceed the cut-off time.


Facts & figures are true as of 21-10-2021. All information mentioned is for educational purposes and relies on publicly available information. None of the information shared here is to be construed as investment advice. We strongly recommend you consult a Cube Wealth coach before investing your money in any stock, mutual fund. PMS or alternative asset.

Priya Bansal

Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.

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