When Do Mutual Funds Update The NAV?

Mutual fund investing involves collecting money from investors and investing them in securities like stocks, bonds, debenture, etc. Since the market value of securities changes every day, each unit's value under a mutual fund scheme also changes as per the market conditions. The price per unit of a mutual fund is represented by Net Asset Value or NAV . When you're investing in mutual funds, you are buying units of funds. Even at the time of redemption, you will sell mutual funds units to get your money back.

When it comes to the price of a mutual fund unit, you need to know that the value gets updated daily. It is important to note that the value of all three categories, including equity, debt, and hybrid mutual funds, have different timing.Unlike stocks where the price changes minute-to-minute, the mutual funds' net asset value is not declared throughout the day. According to SEBI mutual fund regulations, it is updated at the end of the trading day when the markets are closed.In the case of liquid or overnight mutual funds, the NAV gets updated daily at 2 p.m. In the case of equity and debt funds, the NAV gets updated at 3 p.m. If you're buying units of equity or debt before 3 p.m., you are allotted the units based on the previous day's NAV. The NAV of Fund of Funds is updated till 10 p.m.NAV is just one of the indicators of mutual fund performance; however, you cannot completely rely on units' prices to base your decision to buy a scheme.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.