Mutual Funds - Applicable NAV

[devine_mortal]

I've recently started investing in mutual funds myself via MFCentral and Kfintech and have some doubts on the applicability of NAV at the time of investment. Here's what I've noticed:

1. If I pay via UPI before 3pm, I get the units based on the same day NAV, i.e. the one that gets calculated at the end of the same day.

2. For larger trx, couldn't use UPI so used KOTM (one time mandate) and noticed that the units I got were after 2-3 days on that days' NAV. (e.g. Invested on Mon, got units on NAV calculated on Wednesday/Thursday).

I'm really confused with this. Information available online gives all kind of explanations and in summary, they mention it depends on when Fund house gets your money.

Does this mean, KOTM is slower than UPI when it comes to realisation of money? And what's the alternative to UPI to time the market?

 

[sxchzy]

why are you trying to time the market?
and yes possible otm mandates are much slower as they are not instant as compared to upi

 

[devine_mortal]

why are you trying to time the market?
and yes possible otm mandates are much slower as they are not instant as compared to upi

It is for my learning and understanding. Gonna use SIP in the long run. But is there an alternative to otm which are as fast as upi?

 

[RAMESH BABU N]

Funds transfer by UPI and IMPS are instantaneous. NEFT transfer is relatively slow - but usually credited on the same day with a max delay of 2 hours. RTGS transfers (for amounts of over 2 lakhs) are almost instantaneous.

 

[devine_mortal]

Thanks. Unfortunately, I'm stuck with UPI or OTM as for the funds in ques, Citi netbanking is not available. That option is greyed out.

 

[Zacobite]

I've recently started investing in mutual funds myself via MFCentral and Kfintech and have some doubts on the applicability of NAV at the time of investment. Here's what I've noticed:

1. If I pay via UPI before 3pm, I get the units based on the same day NAV, i.e. the one that gets calculated at the end of the same day.

2. For larger trx, couldn't use UPI so used KOTM (one time mandate) and noticed that the units I got were after 2-3 days on that days' NAV. (e.g. Invested on Mon, got units on NAV calculated on Wednesday/Thursday).

I'm really confused with this. Information available online gives all kind of explanations and in summary, they mention it depends on when Fund house gets your money.

Does this mean, KOTM is slower than UPI when it comes to realisation of money? And what's the alternative to UPI to time the market?

yes.. OTM will always be 1-3 days later if done on that day.. If you set up your sip on regular mandate then it gets deducted on the correct day.. UPI also sometimes may roll over to next day but is usually same day.. you cant time it so accurately.. for lump sum.. do payments early in the day by netbanking or upi.. holidays will. impact nav date

 

[j_s]

Thanks. Unfortunately, I'm stuck with UPI or OTM as for the funds in ques, Citi netbanking is not available. That option is greyed out.

NEFT / RTGS is your solution.

 

[Manny@11]

I've recently started investing in mutual funds myself via MFCentral and Kfintech and have some doubts on the applicability of NAV at the time of investment. Here's what I've noticed:

1. If I pay via UPI before 3pm, I get the units based on the same day NAV, i.e. the one that gets calculated at the end of the same day.

2. For larger trx, couldn't use UPI so used KOTM (one time mandate) and noticed that the units I got were after 2-3 days on that days' NAV. (e.g. Invested on Mon, got units on NAV calculated on Wednesday/Thursday).

I'm really confused with this. Information available online gives all kind of explanations and in summary, they mention it depends on when Fund house gets your money.

Does this mean, KOTM is slower than UPI when it comes to realisation of money? And what's the alternative to UPI to time the market?

When you pay manually using UPI, the money is directly sent to the MF house and you will received the NAV based on the transaction time(same day if done before 3PM).

But when the transaction is done through mandate, the money is first received by the settlement bank, which further transfers it to MF house. So, in some cases there may be delays in allocation of NAV. Further, mostly in cases of SIP, the auto debit takes place at mid night and unit allocation will be as per the date of auto debit itself.

 

[devine_mortal]

NEFT / RTGS is your solution.

You get this option by choosing netbanking option itself which is greyed out in my case. I'll have to switch to a new back it seems.

 

[its_karan]

couldn't use UPI so used KOTM

And what's the alternative to UPI to time the market?

For manual Transactions use- NetBanking
Before 3 if Investing Directly with Fund House
(Also check the cut-off time your platform has, it maybe different even though same AMC/fund/plan

For PPFAS(An AMC): Yaha dekhlena
For using Coin(Fintech):Yaha dekhlena

So, if you want to invest in PPFAS FCF, through them the time is 3 and through Coin the time is 2pm)


There is also a STP method.

I'll tell you what I have done.​

All my excess money is in the Fund's Liquid Fund​

And I have put a STP from the Liquid to the Equity Fund​

On my required date​

​

So I want to Put In on the last thursday of every Month into the Equity​

I have setup a STP on last wednesday, thus​

​

Liquid Fund Investment: NAV Closing till wednesday​

Equity Fund Investment: NAV of Thursday​

 

[j_s]

You get this option by choosing netbanking option itself which is greyed out in my case. I'll have to switch to a new back it seems.

I am assuming you are investing under the Direct plans and do not have support of any MFD.

Few points to consider here:

1. one or two days' NAV here and there is not really an issue for the long run but I do understand your frustration with current process. You are not alone.

2. If the date of NAV is so very important to you, try using the 'Quick Invest' option provided on the respective fund house's website. That way you do not have to keep creating multiple accounts and can track all your investments at one place through MFCentral. Fund houses always provide you their collection account details where you can deposit using NEFT/RTGS. If atall you still face any issues, do reach out to the customer support lines of the MF house and they will help you out with the fund transfer process.

Here's the cut-off timing: https://www.kfintech.com/terms-of-use/

OTM mandates are processed in batches and at different time for different banks. It is not feasible to keep a track of these. For lumpsum and first use while registering SIPs, you will see a lag of maybe 2 days but for SIPs second month onwards it should work out like clockwork.

 

[devine_mortal]

Honestly, don't think it is very easy to understand the tricks given the lack of standardization among platforms, fund houses and mode of payment. Atleast that's what I understand from fellow investors here.

SIP/STP seems the way to go for large sums. Though, never understood why a lumpsum for a huge amount can be a problem if you r gonna keep the money invested for 3-5 years.

 

[its_karan]

SIP/STP for large sums

In STP there is a Manual TP

Might want to look into that too

lack of standardization among platforms, fund houses and mode of payment.

Even after standardisation 2pm /3pm

there can be cases of failure

due to payment aggregator not giving your order on time

Unfortunately this happened last year 3 times in a week in Coin for me

Thus stopped using it and invested directly through the fund's website obviously Direct

 

[Vishal N]

I've recently started investing in mutual funds myself via MFCentral and Kfintech and have some doubts on the applicability of NAV at the time of investment. Here's what I've noticed:

1. If I pay via UPI before 3pm, I get the units based on the same day NAV, i.e. the one that gets calculated at the end of the same day.

2. For larger trx, couldn't use UPI so used KOTM (one time mandate) and noticed that the units I got were after 2-3 days on that days' NAV. (e.g. Invested on Mon, got units on NAV calculated on Wednesday/Thursday).

I'm really confused with this. Information available online gives all kind of explanations and in summary, they mention it depends on when Fund house gets your money.

Does this mean, KOTM is slower than UPI when it comes to realisation of money? And what's the alternative to UPI to time the market?

Yes mandate NAV is 2 days later.
With mandate, order is placed today, funds are withdrawn tomorrow and units are assigned day after.

UPI + netbanking is only way to get same day NAV since they get funds instantly only with these 2 methods.