Ch.2 · Mutual Fund Structure Basics · medium
What is the significance of the 'applicable NAV' for a mutual fund transaction?
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EXPLANATION
Applicable NAV is the specific NAV used to process a transaction — it depends on when the valid application (with cleared funds for purchases above ₹2 lakh in debt funds) is received relative to the scheme's cut-off time. Applications before cut-off get same-day NAV; after cut-off get next business day's NAV.
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